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Outline three reasons why a business may wish to adopt e- commerce.
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Reasons for e-commerce adoption:

  1. Increased sales from new sales giving rise to increased revenue from:
  2. New customers, new markets.
  3. Existing customers (Repeat-selling)
  4. Existing customers (Cross-selling)
  5. Marketing cost reductions from:
  6. Reduced time in customer service.
  7. Online sales
  8. Reduced printing and distribution costs of marketing communications.
  9. Supply chain cost reductions from:
  10. Reduced levels of inventory
  11. Increased competition from suppliers
  12. Shorter cycle time in ordering.
  13. Administrative cost reductions from more efficient routine business processes such as recruitment, invoice payment and holiday authorization
  14. Corporate image communication, Enhancement of brand, more rapid and more responsive communications including PR is possible because of adoption of e-commerce.
  15. Faster product development lifecycle enabling faster response to product needs.
  16. Improved customer service and learning for the future.
  17. Identifying new partners and supporting existing partners is possible.
  18. Better management of marketing information and customer information is possible.
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