The economic benefits of e-business are a key part of the success and why many companies run in that direction. First, transmitting information is done fast and quickly. This has the capability of reaching, more quickly and completely, a broader group of buyers and sellers. Additionally, it broadens the scope of particular markets or the exchange of services and goods. The changes, aforementioned, in which the companies compete, bring about the efficiencies of reduced costs and supply and demand consolidation. Buyers are able to get better information about quality, price, and terms of trade.
On the supplier's end, they have better information about the lower costs and their buyers, from automating transactions. Improving the efficiency of service delivery and business operation. The company is able to move resources towards a more efficient and productive direction. This could be inventing new products and bringing them online to the customers or improving an existing part of the business and ensuring, for example, the product production is timely and of quality. In implementing e-business salespeople no longer need to hand-deliver confidential product information, since the company legal and human resource department is in direct control of the small numbers of staff.
Potential sales are enormous, because of the increasing client base and this puts the company at an advantageous position. E-businesses have pricing strategies, they have adopted several types of pricing strategies in order to generate revenue competitively and satisfy customers in the long run. Predominantly they follow; dynamic pricing, static pricing and reverse pricing. In dynamic pricing, product prices are updated in real-time according to various customers and various markets that the e-business reaches.
The business may adjust prices depending upon the customers, where they shift their prices according to business customers and individual customers based on purchasing history.
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