Wordans (Ecommerce)

E-business uses the Internet for the purpose of conducting business. Companies go online to engage in advertising, buying and selling of products and services. Due to the increased competitiveness in the hypermarket industry — hypermarkets are hybrid supermarkets/department stores — the adoption of e-business has helped companies gain a competitive edge over their peers in terms of reduced costs, increased revenue streams and greater customer satisfaction.

 

Costs

Operational costs such as maintenance of inventory and transaction costs have reduced thanks to e-business. Electronic invoicing has increased invoice-processing efficiencies, created transparency in ordering, streamlined payment processing and reduced costs incurred by the purchase of paper invoices. The number of employees has reduced as customers order their products online and pick them up or arrange for them to be delivered for a fee. Search costs for high-quality products and services have been reduced, as customers can easily find them on company websites.
 

Marketing

Companies using e-business have a wider online presence. They can advertise their products and services either on their websites or by hosting them on other domains. These advertisements have been customized to cater to the individual needs of their customers, enabling them to reach their clients at a more personal level. Companies also find that Internet marketing is cost effective, as they pay Internet advertising agencies only when customers view their page.

 

Communications

Adoption of e-business has improved communication in the hypermarket industry. The use of email has enabled companies to respond better and faster to customer issues. Improved customer service has nurtured better relations between retail outlets and customers, ensuring that they remain loyal to the outlets. Companies using websites in the hypermarket industry are able to offer after-sales services to their clients without the need for a physical presence or storefront. Constant communication of improvements in a company’s products enhances its brand for customers.

 

Revenues

Companies that have adopted e-business have a faster product development cycle, enabling them to respond quickly to market needs. They take advantage of being market leaders to increase revenues before their competitors can enter the market. Inventory tracking enables companies to reduce overstocking and understocking, thereby releasing cash needed for maintenance of stock for other purposes, as well ensuring sales aren’t lost because products are out of stock.