Which of the following is an advantage of e-commerce?|electro4u

18 Dec 2021 Balmiki Mandal 0 Digital Marketing

  1. More relaxed checkout procedure
  2. Low operational costs
  3. Minimal interaction required with the customer
  4. Segmentation of audiences

ANS->2. Low operational costs


Low operational costs is an advantage of e-commerce?

Yes, low operational costs is an advantage of e-commerce. Compared to traditional brick-and-mortar businesses, e-commerce businesses have fewer overhead costs, such as rent, utilities, and inventory storage. They can also automate many tasks, such as order processing and customer service, which can further reduce costs.

Some specific ways that e-commerce businesses can keep their operational costs low:

  • Reduced rent and utilities: E-commerce businesses do not need to lease or purchase retail space, which can be a significant expense for brick-and-mortar businesses. They also have lower utility costs, as they do not need to heat and cool a physical store.
  • Lower inventory costs: E-commerce businesses can keep their inventory costs low by using a drop shipping model, in which the products are shipped directly from the supplier to the customer. This eliminates the need for e-commerce businesses to store their own inventory, which can save a lot of money on warehousing and fulfillment costs.
  • Automated order processing and customer service: E-commerce businesses can use software to automate many tasks, such as order processing and customer service. This can free up staff to focus on other important tasks, such as marketing and product development.

The lower operational costs of e-commerce businesses can translate into higher profit margins and lower prices for consumers. E-commerce businesses can also use their cost savings to invest in other areas, such as marketing and product development.

Overall, low operational costs is a major advantage of e-commerce. E-commerce businesses can use their cost savings to improve their profitability, offer lower prices to consumers, and invest in other areas of their business.

BY: Balmiki Mandal

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