Characteristics of e-commerce for answers

Compared with the traditional way of business activities, e-commerce has the following comparative advantages:

1. Transaction virtualization. Through the Internet as the representative of the computer network for trade, trade from the trade negotiation, signing contracts to payment, etc., without face to face, are completed through the computer network, the whole transaction is completely virtualized. For the seller, he can apply for a domain name to the network management agency, make his own homepage, and organize product information on the Internet. And the development of virtual reality, online chat and other new technologies enable the buyer to choose the advertisement according to their own needs and feedback the information to the seller. Through the push and pull interaction of information, signing electronic contracts, completing transactions and making electronic payments, the whole transaction is carried out in the virtual environment of the network. The development of e-commerce breaks the traditional inter-enterprise clear organizational boundaries, the emergence of virtual enterprises, the formation of a "you have me, I have you" dynamic alliance, manifested in the reduction of the tangible boundaries of the enterprise, the invisible boundaries (virtual enterprise *** with the boundary) of the expansion.

2. Low transaction costs. E-commerce makes the buyer and seller transaction costs are greatly reduced. First, the farther the distance, the cost of information transfer on the network relative to the letter, telephone, fax, the lower the cost. In addition, shorten the time and reduce the duplication of data entry also reduces the cost of information. Secondly, buyers and sellers conduct business activities through the network without the involvement of intermediaries, reducing the relevant aspects of the transaction. Thirdly, sellers can introduce and publicize their products through the Internet, which avoids a lot of costs such as advertising and sending printed materials in the traditional way. Fourth, e-commerce implementation of "paperless trade", can reduce 90% of the document processing costs. Fifth, the Internet enables buyers and sellers to instantly communicate supply and demand information, making inventory-free production and inventory-free sales possible, thus reducing inventory costs to zero. Sixth, enterprises can realize "paperless office (OA)" by using intranet, which improves the efficiency of internal information transfer, saves time and reduces management costs. Through the Internet to its corporate headquarters, agents and distributed in other countries, subsidiaries, branches linked together in a timely manner to respond to market conditions around the immediate production, immediate sales, reduce inventory costs, the use of efficient and effective distribution companies to provide delivery services, thereby reducing product costs. Seventh, the traditional trade platform is a ground store, the e-commerce trade platform is an Internet café or office, greatly reducing the rent of the store. Some data show that the use of EDI can usually save 5-10% of the procurement costs for the enterprise.

3. High transaction efficiency. As the Internet will trade in the standardization of commercial messages, so that commercial messages can be completed instantly around the world transmission and automatic computer processing, so that the procurement of raw materials, product production, demand and sales, bank exchanges, insurance, consignment and declaration of goods, and other processes without personnel intervention, and in the shortest possible time to complete. In the traditional way of trade, the use of letters, telephone and fax transmission of information must be someone's participation, and each link to spend a lot of time. Sometimes, due to personnel cooperation and working hours, the transmission time will be delayed and the best business opportunities will be lost. E-commerce to overcome the traditional trade methods of high cost, error-prone, slow processing speed and other shortcomings, greatly reducing the transaction time, so that the whole transaction is very fast and convenient.

4. Integration. E-commerce is an emerging product, which uses a lot of new technologies, but not that the emergence of new technologies must lead to the death of the old equipment. The real business value of the World Wide Web is to coordinate the old and new technologies, so that users can be more effective use of their existing resources and technology, more effective completion of their tasks. The integration of e-commerce also lies in the wholeness and unity of transaction processing, which can standardize the workflow of transaction processing and integrate manual operations and electronic information processing into an inseparable whole. This not only improves the utilization of human and material resources, but also improves the rigor of the system operation.

5. Coordination. Business is a coordinated process that requires coordination between employees and customers, producers, suppliers, and business partners. To improve efficiency, many organizations provide interactive protocols on which e-business activities can be based. Traditional e-commerce solutions enhance interactions within a company, e-mail being one, but that is only a small part of the function of coordinating employee cooperation. By utilizing the World Wide Web to connect suppliers to a management system and then to customer order processing, which is handled through a single delivery channel, companies save time, eliminate the hassle of paper documents, and increase efficiency.

E-commerce makes it easier for companies to communicate and connect with each other, making information more open and transparent, and greatly reducing the cost of inter-enterprise transactions. In traditional business operations, high communication costs, purchasing and selling costs, collaboration costs have greatly increased the burden on enterprises, and become a major factor hindering inter-organizational collaboration. In this situation, enterprises tend to use vertical integration strategy to expand their scale as an alternative to horizontal collaboration, thus reducing transaction costs. The development of e-commerce, so that enterprises can establish long-term partnerships with major suppliers, and the procurement of raw materials and product manufacturing process organically with the formation of an integrated information transfer and information processing system. E-commerce also makes the communication between the two sides of the trade more convenient, greatly reduces the cost of communication between the two sides, simplifies the business process, saves a lot of time costs and transmission costs. In addition, through e-commerce, the supply chain partners (suppliers, manufacturers, distributors, etc.) are more closely linked together, so that the "time lag" between the production and consumption of commodities, supply and demand for the "real-time", greatly improving the sales forecasting and inventory management, and reducing the cost of information transfer and processing system. Sales forecasting and inventory management, reducing the inventory cost of the entire supply chain, and saving the storage, storage, administrative and other aspects of the expenditure.

6. Transparency of transactions. Buyers and sellers from the transaction of the negotiation, signing and payment of goods, delivery notification and the entire transaction process are carried out on the network. Smooth, fast information transmission can ensure that a variety of information to check each other, can prevent the circulation of counterfeit information. For example, in a typical license, - . System, as a result of strengthening the communication between the licensing unit and the verification unit, checking