Sunday, June 15, 2008

An Examples of an E-Commerce Success and Its Causes

Internet is a public network that allows million of people to share the same information without geographical limitation. It is the biggest market in the world. So, many companies may use electronic system to sell the product or service through the internet. Not all the companies may success by using e-commerce, some may success but some may fail.

Dell is one of the successful examples in E-commerce.
Dell is a company sells products and services directly to customers through dedicated sales representatives, telephone-based sales, and the internet. Customer segments include large corporate, government, healthcare, and education accounts, as well as small-to-medium businesses and individual consumers.
Dell named as the most successful e-commerce companies is because of Dell's e-commerce presence is widely publicized these days because Dell is able to sell so much merchandise over the Web. According to
IDG, Dell sold something like $14,000,000 in equipment every day in 2000, and 25 percent of Dell's sales were over the Web.

The reason that Dell success is the price of Dell’s product is lower than others company. This is because of the transaction cost is lower than other since Dell directly sell to the customer which without the intermediate.

Dell creates a web site that is well-integrated into the business cycle which can offer customers more information than previously available. For example, Dell tracks each computer through the manufacturing and shipping process, which allows their customers see exactly where their order at any time.

Dell has an automated tool that can interact with a customer in richer ways at virtually no cost. For example, Dell may send an email to the customer when the order is confirmed, when the order is shipped and after the order arrives. This can increase the satisfaction of the customers and a happy customer is more likely to purchase something else from the company.

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