 "Three Influences Of E-commerce On SMEs")
As one of the most important trade patterns of cyber economy, e-commerce has promoted regional economies, national economies and the global economy to new levels. The development of e-commerce has brought great change to traditional business, marketing and the business environment in general. e-Commerce can satisfy the co-operative needs of customers and managers, reduce service costs and can improve product quality. e-Commerce also increases operational efficiency by reducing the costs of intermediate links in business.
The third-party e-commerce model is a many-to-many business model, which suits SMEs best. It is not necessary for SMEs to build an e-commerce system and they can realise online trading just by joining the third-party e-commerce platform. e-Commerce has made great developments since 1999; however, there are still some deficiencies for SMEs, such as technology, payment, security, logistics and information.
Experts from Tootoomart.com ( http://www.tootoomart.com/wholesale/ ) have released the three great influences of e-commerce on SMEs.
1) e-Commerce has changed the business environment
e-Commerce makes changes to market mechanisms: enterprises can advertise and do market research on the Internet; they can also exchange information and sell on the Internet. The Internet also helps strengthen the connections between factories and changes the modes of sale and purchase.
2) e-Commerce has changed the management model of enterprises
The influence of e-commerce on the business environment has made the management echelon adjust market aggregation strategy to accommodate this changed business environment. Workflow automation can reduce errors and make the whole technological process faster and more exact.
3) e-Commerce increases economic benefits
Using the Internet to promote products can reduce promotion costs. e-Commerce can strengthen the co-operation of suppliers and enterprises to reduce procurement costs. Enterprises can also get the newest feedback and inquire about how to improve their products online. Analysts from Tootoomart.com say that using e-commerce can reduce costs by 5-10 percent.