Advantages Of E Commerce

2146 Words9 Pages
Electronic commerce or e-commerce is business or a segment of a large business that enables individual or company to conduct business over an electronic network, mainly the internet. Business model are defined as a way or a method of doing and develop business by which a company can sustain itself which to generate revenue. Therefore, Electronic commerce business model are defined as way or method to doing business online which a company can generate revenue or income. Electronic commerce is first developed when in the year 1979, Michael Aldrich who is an inventor, innovator and entrepreneur first developed an online shopping, when he first encountered problem when he has to go to shopping weekly and he always complain to his wife that the…show more content…
When a business have a physical store, you are restricted by your geographical area to provide your services. With the birth of electronic commerce website, it breaks the barrier to businesses to provide their services. Furthermore, by having an electronic commerce website, you can buy things and services with a click of a mouse. Moreover, with nowadays technology such as mobiles application, the electronic commerce mobile applications has eased so many buying and selling processes and has solved many geographical barrier. Other than that, with electronic commerce website businesses can gain new with search engine visibility. When a customer search something that they want, they will type in the stuff that they want in the search engines. Then, the customer will usually stumble upon a link in search engines that lead to an electronic commerce website that they never heard of. This will be an advantage for electronic commerce website rather than physical retail store that is driven by branding, relationship and more to mouth-to-mouth information or promotion. Other advantages of electronic commerce are electronic commerce is lower in cost and not expensive. There are some ways that can reduced cost by using electronic commerce such as in advertising and marketing, social media and pay-per-click are some of the advertising channels that can cut down cost, in…show more content…
Business to Government business model (B2G) is defined as a business model that refer to the exchange of services, information, and products from one business to a government. Example of companies that use Business to Government (B2G) is Allianz.com which provide insurance service to government agencies. The advantages of Business to Government model (B2G) is business can sell product or services to government customer and be their vendor and this will make the business produce much profit. Moreover, if the services or product is good, the government customer will loyal to the business. The disadvantages of Business to Government model (B2G) is usually contracted. It’s mean that the services that business provide for the government is temporary based on contract that the both parties agree. So business cannot rely solely on government agencies
Open Document