On the advantages of electronic commerce over traditional commerce.

Answer: 1. Reduce transaction costs First of all, enterprises can improve marketing efficiency and reduce promotion costs through online marketing activities; Secondly, e-commerce can reduce procurement costs, because with the help of the Internet, enterprises can seek the best suppliers in the global market, and by sharing information with suppliers, losses caused by inaccurate information can be avoided. According to statistics, using EDI can usually save 5%- 10% of the procurement cost for enterprises.

2. Reduce inventory Enterprises have to maintain a certain inventory of products in order to cope with unpredictable market demand, and because enterprises are uncertain about the raw material market, they often maintain a certain inventory of raw materials. The root cause of inventory is poor information. E-commerce based on information technology can change the problem of inaccurate and untimely information in enterprise decision-making through the Internet, market demand information can be transmitted to enterprises for decision-making and production, and enterprise production information can be immediately transmitted to suppliers for timely replenishment, thus realizing zero inventory management.

3. Shorten the production cycle The production of a product is the result of cooperation among many enterprises, so the design, development, production and sales of the product may involve many related enterprises. Through e-commerce, the past stage cooperation mode of information closure can be transformed into collaborative work of information sharing, thus minimizing the waiting time caused by information closure.

4. Increasing Business Opportunities Traditional transactions are limited by time and space, while Internet-based e-commerce is a 24-hour global operation, and online business can reach markets that traditional marketers can't reach. For example, a poisonous snake farmer in Hunan, China, sells his products to a company he has never met in the United States through the Internet.

5. Reduce dependence on materials. The business activities of traditional enterprises must have a certain material basis before they can carry out business activities. Virtual enterprises can be established through the internet, such as online stores and online banks, and basically do not need a lot of physical infrastructure. At the same time, enterprises can also pass on the savings to consumers. This is why Amazon, a famous online bookstore, can provide consumers with discounts that traditional bookstores can't. 6. Reducing intermediate links E-commerce redefines the traditional circulation mode, reduces intermediate links, and makes direct transactions between producers and consumers possible, thus changing the operation mode of the whole social economy to some extent.