E-COMMERCE AND THE RELATED COST

PhD Candidate Văduva Alin Cristian

Annals of University of Craiova - Economic Sciences Series, 2009, vol. 1, issue 37, 242-250

Abstract: The progress of the informatics and communication technology, especially the development of the Internet infrastructure, make possible the complete electronical and even partially automatized support of the business field. If an electronic market is suplimentary used as a meeting place for the offerors and customers, it is an indirect form of e-commerce. In the case of the totally electronic commerce (direct electronic commerce), the goods to be sold are exposed to the public, are digitalised. These goods can be directly distributed via the Internet.The role of the e-commerce is that of a mediator among the producers, distribution networks, other facilitators and the consumers.The e-commerce can contribute to the diminishing of a certain offeror’s costs by a series of mechanisms, thus it can increase the capacity of competitionof a firm.Using the Internet there can be done comparisons and price analyses, while the costs for the changing of an offeror who has more attractive prices are more diminished. As it can be noticed according to the eProcurement development, the increases of the efficiency can be obtained by diminishing the aquisition costs. Important costs are to be seen in the development of the sale process, as well as in the marketing sector.The Internet technology offers various possibilities of saving money. Advertising is easy to be accessed today, so that the clients may benefit of information immediately, while the offeror saves money with multiplication and dispatch.

Keywords: cost; commerce; technology (search for similar items in EconPapers)
JEL-codes: M16 M19 (search for similar items in EconPapers)
Date: 2009
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