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Benefits&ImpactsofE-commerceFewinnovationsinhumanhistoryencompassasmanypotentialbenefitsasE-commercedoestoorganizations,individuals,andsociety.Thesebenefitsarejuststartingtomaterialize,buttheywillincreasesignificantlyasE-commerceexpands.ItisnotsurprisingthatsomemaintainthattheECrevolutionsisjust“asprofoundasthechangethatcamewithintheindustrialrevolution”(ClintonandGore1997).Electroniccommerceexpandsthemarketplacetonationalandinternationalmarkets.Withminimalcapitaloutlay,acompanycaneasilyandquicklylocatesmorecustomers,thebestsuppliers,andthemostsuitablebusinesspartnersworldwide.Electroniccommercedecreasesthecostofcreating,processing,distributing,storing,andretrievingpaper-basedinformation.Itreducesthetimebetweentheoutlayofcapitalandthereceiptofproductsandservices.ECcanlowerstelecommunicationscost—theInternetismuchcheaperthanVANS.Forexample,byintroducinganelectronicprocurementsystem,companiescancutthepurchasingadministrativecostsbyasmuchas85percent.Electroniccommerceallowsreducedinventoriesandoverheadsbyfacilitatingpull-typesupplychainmanagement.Inapull-typesystemtheprocessstartsfromcustomerordersandusesjust-in-timemanufacturing.E-commercebringsaboutimprovedimage,improvedcustomerservice,newfoundbusinesspartners,simplifiedprocesses,compressedtime,increasedproductivity,eliminatingpaper,expeditingaccesstoinformation,reducedtransportationcosts,andincreasedflexibility.Electroniccommerceenablescustomerstoshopordoothertransactions24hoursaday,allyearround,fromalmostanylocation.Itprovidescustomerswithmorechoices;theycanselectfrommanyvendorsandfrommoreproducts.E-commerceisperceivednotasaproduct,butratherasanagentthantwilltransformtheeverywayproductandserviceiscreatedandsold.Itcompletelychangestherulesofbusinessprocessesandbenefitsexpectedthroughouttheeconomy.1、ReducedperTransactionCostversusOtherChannelsAlthoughestablishingandmaintainingaWebsiteontheInternethascostsofitsown,thepriceofusingtheWebversusothersaleschannelsissubstantiallyreduced.Asanadvertisingmedium,promotionusingaWebsiteresultsinthesaleoftentimesthenumberofunitswithone-tenthoftheadvertisingbudget.Colorful,graphicalanddistributingprintedmaterials.Ifspecialtyhot-saucevendorHotHotHotprintedcatalogsforitsproductsratherthanofferingthemontheWeb,theCompanyestimatesitscostswouldskyrocketfromthecurrent$100PERMONTHTO$500000permonth.AMPInternationalofHARRISBURG,Pennsylvania,onceprinteditscatalogsatacostof$8million.Byputtingitsstockof70000itemsontheWeb,suchcostshavebeengreatlyreducedandsaleshaveincreased.Furthermore,thespeciallydesignedWebsitemakesiteasierforthecustomertopinpointdesiredequipmentpartsthenthepapercatalogeverdid.ProducingandmailingonetechnicalinformationpacketcoststheGlobalEnergyNetworkInternationalanestimated$25.ThecostfordistributingthesameinformationovertheWebismarginalanddoesnotincreaseasmorepeopleaccessit.TheWebcanreducethecallvolumeandcostforprovidingeffectivecustomersupport.Forexample,FederalExpress'sWebsiteenablescustomerstotracktheirownpackagesatacosttothecompanyof$0.1perinquiry.Whenliveoperatorshandletheseinquiresovertoll-freetelephonelines,eachcallcostsFederalExpress$7.ThereisnoquestionthatdoingbusinessovertheWebiscosteffective.2、Full-TimeBusinessBecauseofdifferencesintimezones,coordinatinginternationalbusinessnegotiationscanbehighlyinconvenient.Providingsupportandservice24hoursperday,sevendaysperweekisexpensive.However,Websites,unlikesalespeople,arealwaysonline.UserscanfindtheanswerstotheirquestionsanydayoftheyearandcanE-mailinquiresiftheWebsitedoesnotanswertheirquestions.Inaddition,prospectsthatareunawareofthecompany'sexistencecanfinditonlinebecauseWebsitescanbeindexedbyInternetsearchenginesunderavarietyofkeywords.Awebsitebecomesthecompany'spermanenthomebase,aninformationresourcecontinuallyavailabletotheworld.Allowingcustomerstotransactbusinessattheirconveniencecanresultinincreasedsales.Expro,acompanythatsuppliespartstooilcompanies,setupaWebsiteenablingengineersfromShellOilonatankerintheNorthSeatoimmediatelyplaceordersontheWeb,ratherthanwaitingtoreturnonshore.Theengineersadmitthattheydo,infact,placemoreordersbecausetheycanplaceorderswhentheyarefacingtheneedfortheproduct.Anonlinestorecanaffordtobeopenatalltimesofthedayandeverydayoftheyear.Fewrealworldstorescanjustifysuchanarrangement.3、PhysicalInfrastructureisOptionalExistingbusinessescancreateWebsitesasanadditionalsaleschannel,buttheWebalsoopensthepossibilitiesfornewtypesofenterprisesthathavenoreal-worldcounterparts.Inthemostvirtualofcases,astorecanhavenoinventoryandsquarefootagetomaintain.Iftheproductitselfissoldonline,asisthecasewithinformation,entertainmentorsoftware,warehousesandthelikearecompletelysuperfluous.Theentiresalescycle—fromresearchtoordertopaymenttodelivery—occursonline.EvenstoreswithretailoutletsfindthattheirWeb-basedstoresdonotfacethesameshelfspacelimitationsreal-worldstoresdo.Norestrictionsexistonthenumberofitemsanonlinestorecancarry.Onlinestorescanbemoreflexibleabouttheproductstheycarryandhowtheypricethoseproducts.RCSNet,aManhattancomputerretailer,oftenchangesitspriceseve