Analysis of the role of network marketing in reducing costs

First, the cost analysis of e-commerce

In fact, the cost of e-commerce is still far from what people expect, and even higher than the cost of traditional business. According to a newly released survey by the Gartner Group, some banks are charging online retailers up to a dollar more per credit card transaction processed than they are charging brick-and-mortar stores. There's also the disturbing figure that online retail fraud is as much as 12 times more common than traditional shopping methods.

1. Technology costs. The technology costs of e-commerce include software and hardware costs, learning costs and maintenance costs. E-commerce is the product of a combination of various technologies, expensive investment, complex management, maintenance costs of the high cost of making some companies shy away. In the face of the customer's inability to cope with the complex technology platform and the high cost of hardware and software configuration of the actual problem, ASP the emergence of this new industry has emerged. It is a system, lack of talent in small and medium-sized enterprises as the main object of business, while some large enterprises are also interested in ASP. However, the price and quality of this rental service can be accepted by the enterprise, can reduce the cost of e-commerce technology in how much the enterprise, is still to be verified in practice.

2. Security costs. In any case, the security of the transaction is always the primary concern of people, how to ensure the fairness and security of the transaction online, to ensure the authenticity of the identity of the counterparty, to ensure the integrity of the transmission of information as well as the non-repudiation of the transaction, to become the promotion of e-commerce is the key. And a series of security elements of the above transactions must be guaranteed by a series of technical measures. At present, the formulation of security standards, the development of security products and the development of security technologies have played a driving role in solving the security of online transactions. These agreements for transaction security, regulations, software, hardware, technology, installation and use of learning and operation will increase the cost of e-commerce operations.

3. Distribution costs. In e-commerce is the most difficult to solve is the logistics and distribution. Logistics distribution from the operation of e-commerce companies separated from the specialized logistics agency to operate will become the direction of development. The independent operation of logistics and distribution agents will also lead to some new problems, and the cooperation between the two sides is crucial, but some legal issues involving property ownership, risk and liability, cost and cost, product quality, and dispute resolution will also surface. Logistics and distribution is an important and final part of e-commerce, the goal and core of e-commerce, and an important measure of the success of e-commerce.

4. Customer cost. Refers to the customer for online transactions spent on the Internet, consulting, payment until the final goods in place to spend the total cost, which is a completely dependent on the network of services, as long as the consumer began to enjoy such services, you have to bear the minimum cost of a few dollars per hour, not including the acquisition of the appropriate hardware and equipment and learning to use the cost. Although such costs are not included in the operating costs of the business, but as a user cost, it is an important factor affecting the development of e-commerce. For example, in the online purchase of an iron can be cheaper 5 yuan, but the user for online browsing, inquiries, selection, payment of the cost of 6 yuan, the user will give up the way online shopping. Although e-commerce is pregnant with huge business opportunities, the real realization of profits needs to be exhaustively demonstrated.

5. Legal costs. The development of e-commerce is faced with a large number of legal issues, such as: the judicial ruling of online transaction disputes, judicial authority; transnational, cross-regional online transactions when the applicability of the law, non-discrimination, security and confidentiality, authorization of authentication centers (CA) management; cybercrime, the applicability of the law, protection of intellectual property rights, the right to privacy, the unification of standards related to online commerce and conversion. The establishment of e-commerce rules can effectively reduce transaction disputes, but at the same time, it also increases the difficulty and cost burden of the operation of e-commerce parties.

6. Risk cost. E-commerce currently exists a certain degree of business risk, should be on the e-commerce aspects of the special risk to recognize and grasp, in order to have the benefit of watching and avoiding. Risk cost is a kind of invisible cost, the formation of the cost is not good to determine, not easy to grasp the composition of the factors, such as the loss of website talent, viruses, hacker attacks, the rapid development of new technologies resulting in the hard, software updates and so on.

Second, the problem

At this stage, we all have their eyes on the profits, enterprises are facing the pressing problem of entering the Internet is not a strong motivation, many industries have not yet formed a strong competitive situation. Some companies may find it a good idea to rent a business platform for convenience and to save on investment. But one in the competition on both sides of the two or more enterprises all run on an ASP's e-commerce platform, which means that all of the enterprise's trade secrets are all in the hands of the ASP, which may make the helmsman of the enterprise sleepless nights.

Even in the highly sophisticated future, e-commerce may not be able to completely replace traditional commerce, because it cannot satisfy the emotional needs of consumers for shopping. Sometimes shopping is actually a kind of leisure and entertainment, but e-commerce is more like a kind of work, in this regard e-commerce loses its advantage. There are also similar impact of counterfeiting, order reversal, poor logistics, online payment is difficult, online variety is scarce, no price advantage, online security and confidentiality measures are not perfect, network costs, a series of problems will become an important constraint on the development of e-commerce factors.

But undeniably, e-commerce is the future economic growth point of the 21st century, which led to the development of e-commerce technology, products and services will bring new opportunities to different industries. In such a process, the survival of the fittest is the principle and result of the competition mechanism, which includes not only the competition of technology, capital and talents, but also the competition of the whole operation system and management system. The current losses may be just people on e-commerce costs, models and other theoretical analysis and business practice opportunities, only constant change, in order to be invincible in the competition.