Now, it is mainly done through Internet and Electronic Data Interchange (EDI). E-Commerce was first developed in the 1960s. With the wide use of computer, the maturity and the wide adoption of Internet, the permeation of credit cards, the establishment of secure transaction agreement and the support and promotion by governments, the development of E-Commerce is becoming prosperous, with people starting to use electronic means as the media of doing business.
Benefits of E-Commerce.
As computer network facilitates information exchange in a speedy and inexpensive way, Internet now penetrates into almost every corner of the world. Small and medium sized enterprises (SMEs) can forge global relationships with their trading partners everywhere in the world. High-speed network makes geographical distance insignificant. Businesses can sell goods to customers outside traditional markets, explore new markets and realize business opportunities more easily. .
SMEs who cannot afford establishing overseas offices and strongholds can now increase their exposure to every corner of the world. .
Businesses can gather information on products, buyers and competitors through Internet so as to increase their own competitiveness. .
Businesses can maintain their competitive advantage by establishing close contact with their customers and consumers at anytime through Internet by providing the latest information on products and services round the clock. On the other hand, data can be updated at anytime, eliminating the problem of out-dated information. .
Internet provides companies with many markets in the cyber world and numerous chances for product promotion. Besides, relationships with buyers can also be enhanced. .
By the use of multi-media capabilities, corporate image, product and service brand names can be established effectively through the Internet. .
Detailed and accurate sales data can help to reduce stock level and thus the operating cost.
