Ecommerce

E-commerce is about using the internet to buy and sell goods and services online.

Here are some key facts about e-commerce in the UK (*):

• The number of businesses using the Internet for sales increased by a quarter, to 5 per cent, between 2002 and 2003
• The value of Internet sales more than doubled between 2002 and 2003; from £19 billion to £39.5 billion
• In the same period, the value of Internet purchases rose from £18.7 billion to £39.9 billion
• 67 per cent of all Internet sales and 78 per cent of Internet purchases were of physical products
• The value of sales to households rose to £11.4 billion in 2003 from £6.4 billion in 2002

Read on to see how Emergence can help you're business make money from using the Internet to reach your customers.

* Figures compiled in 2004 for 2003 by the Office of National Statistics.

Ecommerce: benefits (part 1)

An e-commerce website offers enormous potential benefits to businesses, whatever their size. The benefits include:

• Access to a global market – the internet allows businesses access to a huge market of potential customers worldwide
• Cutting out the middleman – businesses can sell directly to end-users
• A level playing field – a small business can show itself to be as professional and credible as its larger competitors
• 24-hour business – with a website that accepts payments online, you are always open for business to customers even if your office is closed
• Greater customer satisfaction – an e-commerce website can be a powerful tool for building customer loyalty. A well-designed website puts the customer in charge of the relationship – they can buy, browse, ask for help or track the progress of their order when they want

Ecommerce: benefits (part 2)

• Reduced marketing costs – word of mouth can be incredibly powerful on the web through e-mail recommendations and search engine ratings. You can achieve a great deal through organic growth by treating customers well, keeping them informed about your activities and benchmarking yourself against competitors.
• Better customer information – giving online customers passwords to your site saves them having to re-enter their details every time they shop. But it also gives you information about buying habits to refine your marketing, pricing and purchasing strategies.
• Streamlined business processes – increasingly companies are integrating their business processes. Orders come in to their website, card details are processed, goods dispatched and stock re-ordered seamlessly, dramatically reducing the cost of each sale.