Question

Is it a good idea to offer goods on the internet?

In your response, provide summaries, NOT quotes, of material set out in the text to show that you have read the assigned chapters and can apply what you have read.

All that you need is in the text. Ideally, the text will be your only source. As you progress through the readings, your responses should incorporate information you have gathered from multiple sections of the text.

Answer 1

Selling or offering goods on internet or to be more precise use of e-commerce websites has many advantages which are as follows:

• Lower setting up costs as you save on costs of building, infrastructure, payment of wages to employees and other costs like electricity, rent etc. The saved costs can be used for expansion of business by developing the website and adding new products.
• Removal of geographical restrictions as e-commerce stores can be operated from any where. Just having access to email, phone and internet you can conduct your business from any part of the world.
• It helps in scale-ability. E-commerce websites keep you updated with the figures about which product is selling successfully. You can easily catch the pulse of customers. You can get to know what is selling most successfully with the customers. Accordingly strategies can be made to increase profits and sales.
• 24*7 Availability. E-commerce stores operate day and night. Customers can buy product whenever they want and buyers can sell them at their own ease. Special offers, festive discounts, Holiday season benefits can be offered the customers at any time as sales and profits can be increased.
• Measurable performance is possible through e-commerce stores. You can easily know the data about how much sales and profits your business has made, how many orders are processed through your site, average cart total, cart abandonment rate and percentage of total revenue your website has achieved at regular intervals. Google Analytics is a powerful tool to determine all this information.
• High Margins and better cash flows are possible through e-commerce business. Once your website gets popular with customers you can sell large number of products. Also payment is received online through secured payment systems like Paypal, Googlepay, Wordpay and many others.