How does e-commerce reduce business transaction costs?
E-commerce is a highly efficient way to conduct business. Selling online enables a company to reach potential customers while reducing costs associated with a brick-and-mortar operation.Reduced Capital CostsSelling online lets businesses reach customers without the expense of building or renting stores. One website can sell merchandise to customers worldwide without the cost of a physical store.Reduced Labor CostsE-commerce reduces labor costs. Selling online reduces or even eliminates the need for salespeople. Companies can still offer customer support, but the cost of online customer service representatives is less than a traditional sales team.Reduced Marketing CostsAdvertising online is more cost effective than other advertising methods. In most cases the return on investment is much higher for online advertising campaigns than traditional print, television or radio advertising.Reduced Distribution CostsE-commerce companies ship their products from centralized warehouses. This elim
