For most people in America, economics is one of the most important fields of study. They study it in college and some become professors of finance or business at the graduate or doctoral level. For many of those with graduate degrees, economics is their entire career.
There are numerous advantages of studying economics at the graduate level or beyond. The first is that you will learn how different economic systems around the world work. You will study how businesses in various countries utilize state-of-the-art technology to compete with one another in a global economy. You will also gain a better understanding of how governments intervene in markets to promote economic development.
The advantages of a career in economics are many. For instance, most e-businesses do not have a physical location. This makes it very easy to expand your company when you get a better handle on the rules of supply and demand. If an e-business does not have the advantage of physical location, then it cannot grow to the extent that a traditional business can. However, the advantage of e-businesses is that the actual costs of production are lower than for traditional businesses. So even if you start out with lower capital, you will be able to overcome these disadvantages.
Secondly, the fact that e-commerce is not a physical location indicates that it is much cheaper than traditional businesses. In this age of shrinking budgets, every dollar counts. For instance, if you need to purchase supplies for your online store, you do not need to spend a lot of money. On the other hand, if you need to pay employees, rent office space and deal with payroll, then your business is definitely on the lean side. The good thing about e-commerce is that you do not need to invest in these things. So you can cut down on your expenses and increase your profit margin.
Another advantage of online electronic commerce is that it allows the market participants to trade online with each other and it allows them to enter into transactions without moving from their seats in front of a computer. Since electronic commerce is global, you have access to buyers and sellers anywhere in the world. The Internet is a 24-hour marketplace where buyers and sellers meet online. Hence, your customers are no longer restricted to the physical locations where they can physically visit your store to make purchases. Your customers can conduct all their business transactions online at any time.
Besides the above two advantages, another advantage of electronic business is that it allows the consumer to buy products online. Unlike home-based businesses that require the home buyer to physically travel to the market, e-businesses allow the consumer to do business virtually. This has several implications for the economy because home-based consumers spend a fraction of their income on actual purchases. On the other hand, people who do online shopping only spend a fraction of their income on actual purchases but they still contribute to the economy’s strength by saving a lot of money.
With all these advantages, it is not surprising that many business enterprises around the world are now shifting their focus towards online sales. But it is important to note that while these advantages of online shopping are great, there are also some disadvantages that we need to be aware of. The two most significant disadvantages of online shopping are: high costs and absence of personal contact between customers and sellers. Let’s now have a look at the advantages of e-commerce.
One of the greatest advantages of e-commerce is the fact that you don’t have to open up shop and hire a sales staff. The online selling business consists of the market participants themselves – clients, suppliers, business owners and buyers. The advantages of this kind of electronic business are: reduced costs, better market penetration, better pricing and greater flexibility. The disadvantages of this type of electronic business are: high costs, lack of personal interaction between market participants, difficult task in maintaining inventories, and difficulty in tracking sales and profits. Finally, note that the disadvantages of this type of electronic business are mitigated by the emergence of online drop-shipping companies that allow the sellers to concentrate on other aspects of their businesses such as marketing, customer service, and product creation,