E-Commerce

Paper Summary:

This paper examines how the emergence of the Internet as a locus for commercial activities in the form of "e-commerce" has led some economists to conclude that new possibilities for development of a truly and generally efficient marketplace are being created. It analyzes how the e-commerce environment has a direct impact upon overall sales for any company that depends on sales as a means of enjoying a return on investment (ROI). It shows how e-commerce has the potential to create an entirely new sales environment that will adjust the ways in which a myriad assortment of activities are undertaken and organizations themselves structured. Financial management activities - ranging from investment decisions to capital resource allocation to inventory control and distribution channels - will all be impacted more and more as e-commerce becomes integral to business activities.

From the Paper:

"Another way in which e-commerce and the Internet are creating efficient markets is through development of "cost transparency." Sinha (2000) states that economists define cost transparency as a situation made possible by the abundance of free, easily obtained information on the Internet. Seller's production, marketing and distributions costs are made more transparent to purchasers, who can then negotiate favorable purchase prices that more nearly represent an adequate return on cost of production. When it becomes possible to compare the products of Company A to those of Company B in this manner, the balance between costs and prices becomes more nearly that which would be expected in a situation of perfect competition."

More papers on E-Commerce:

• Essay # 143724 : "E-Commerce And Business Strategy"
• Research Paper # 89315 : "E-Commerce and E-Business in the 21st Century"
• Essay # 90539 : "Issues in E-Commerce Websites"
• Essay # 85516 : "E-Commerce"

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