E-Commerce for Small Business 

E-Commerce is a boon to small business firms.  Small business in e-commerce can compete   with multinational companies through information super –highway.  Small business can even surpass big businesses beyond expectations.  It has an easy access to reach a wider market globally.  What are the advantages of e-commerce for small business?

Business Costs are Lowered: Small business does not require a plush office space or staff anywhere.  All it needs is a well developed `web site` which might cost about $500 a month.  The cost of the site might work out to about less than 10 per cent of its revenue. Since business transactions are handled electronically the staff requirement is minimal.  The virtual store also reduces the chances of theft, damage, or breakage of the inventory.

E-Commerce is Accessible from Anywhere Anytime:  Small businesses can have global audience.  Shopping is done online by customers.  A web marketing can become multi-lingual and suit the global customers.  Throughout the 24 hours business can take place in the virtual world because of time variation.  A night in India is working hours in the United States.  It is convenient shopping 24/7.  The cash register is open all day and night, while business owner is sleeping.

E-Commerce Strengthens Customer Service:  The small business web site enables the owner to address each and every customer personally.  The computer can tell owner who is a new customer who is a repeat customer.  The system can track customers with the latest information on the product benefits or a new launch; also can evaluate customer’s buying habits to improve the marketing techniques.

E-Commerce Develops Customers' Loyalty: It is seldom a customer  in a shop in real world gets information about the company or on all products range, nor any sample.  Whereas in e-commerce virtual shop the customers get every information about the business or can  even get a free sample.  The relationship with a customer becomes personalized.  Also a web site is soft sell and not high pressure selling.  The business has an opportunity to sell itself while gently leading the customer to buy its products.

Thus, E-Commerce provides a tremendous potential to grow globally for small business.

Questions:-                

• What do you understand by E-Commerce?
• How does E-Commerce help small business to expand its customer base?