Financing on E-Commerce Venture and Types of Funding

Financing on E-Commerce Venture and Types of Funding


Abstract

Electronic Commerce (eCommerce) is a commerce idea centred on goods and services that are advertised, negotiated, and paid for via the Internet. As a result, internet commerce necessitates expenditures in computer systems, marketing, logistics, and payment processing.

The profitability of eCommerce expenditures will be the subject of this study, with a particular emphasis on information technology systems and sales management outlays. The information technology system will be less expensive if the services are made more standardised, if they do not change as often, or if they are well recognised by the consumers and there is less need for additional information. The amount of money spent on marketing is determined by the customer's familiarity with the brand. eCommerce companies that are "Born on the Net" must invest much more in marketing than companies that "Move to the Net." These expenditures may be seen as steps in a process that seeks to increase the firm's income, provide better customer service, improve the logistics system, and reduce payment costs. These costs and benefits are analysed and utilised to create investment assessment criteria. Finally, the analysis is applied to five case studies in the capital goods, financial services, food, ornamental horticulture, and books and stationeries sectors, where the provided background from practise and criteria for success in terms of a customer base, margins, and sales growth are created.

For More Details About Financing on E-Commerce Venture and Types of Funding Please Visit Our Website


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Introduction

Electronic commerce is a kind of business that uses a computer network (the Internet) to a) exchange product and service information, including pricing offers, and b) purchase and sell goods, services, and information online. It represents a fundamental shift in computer systems, marketing concepts, and logistics. “Promote low-cost client-prospecting techniques, create strong connections with customers, and develop customer loyalty” have been the goals (Kalakota & Whinston 1996, p. 9). The primary source of profit for eCommerce is intended to be business-to-business transactions (B2B). Only a small percentage of business-to-consumer (B2C) instances seem to have been successful.

For More Details About Financing on E-Commerce Venture and Types of Funding Please Visit Our Website


 Or call us +91 9481545735

Conclusion

The profitability of eCommerce investments was examined in this study. There are two types of investment outlays that have been considered: information systems (web-services) and marketing. It has been shown that marketing expenditures are frequently on par with, if not higher than, those for information systems. Both types of investments must be seen as highly hazardous, and it is critical to establish rules for evaluating them financially. The initial capital expenditures must be matched to the operating surplus. It's not uncommon for financial choices to be made in a certain order. This gives the investors a great deal of flexibility. For example, a second stage of investment in web-services and marketing may not be done until the ambiguity around the impact of the first marketing expenditure on online sales has been resolved.

For More Details About Financing on E-Commerce Venture and Types of Funding Please Visit Our Website


 Or call us +91 9481545735

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