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The importance of information related online payment By kabir khan

  in Business | Published 2015-02-05 10:25:44 | 116 Reads | Unrated

Summary

Feepal is the fastest growing online community for online payment Relevant and Much needed information about including latest news about online payment and payment gateway Current Affairs and CSAT is updated on a regular basis.

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Information is the key component of the modern economy. While pure knowledge is disembodied, transferring, storing, and processing information is costly for firms and consumers. E-business has such a great impact on today's economy because ICT lowers the costs associated with information. Viewed through the lens of cost reduction, transformations of the production process enabled by e-business such as outsourcing, electronic procurement, and online trading not only make sense but also become predictable. Similarly, given the importance of information

t="_blank">online payment in search and matching markets such as consumer purchasing and the labor market, the advent of electronic intermediaries such as auction sites and online resume exchanges makes sense. Wherever the costs involved with transacting information are high, the gains from adopting e-business practices are highest and the market will naturally implement ICT there first.

 

Reduced informational costs cannot only facilitate given transactions, but can expand the set of transactions included within a specific market. By lowering the costs of bringing together geographically distant buyers and sellers, e-business increases the size of any given market. Larger markets make the trade of goods and services more reliable and efficient, in part because bigger markets often have lower average costs associated with them. However, the aggregation of information in larger markets is beneficial in its own right, especially compared to the bilateral negotiation between economic agents that e-business may replace. The inefficiency of bilateral negotiation—that some mutually beneficial trades may not occur—is due to the asymmetric information (e.g., on the reservation prices) held by the parties. Thicker markets mitigate such inefficiencies

 

B2C e-commerce over the Internet has grown steadily since its inception in the 1990's. Official estimates in the US peg e-commerce at $135 billion in 2008, which is 3.4 percent of total retail sales (US Dept. of Commerce, 2009). B2C interactions allow better matching of consumers to products and services. Search tools for buyers, retail auction sites such as eBay, and on-line brand communities all lower the consumer's cost of searching for goods and prices. With a lower search cost, consumers search more and obtain a better match.

 

On the seller's side, e-commerce allows the collection of more information about customers than is provided by "old economy" retail channels. Such information payment gateway is valuable for firms, allowing them to push tailored marketing messages to consumers based on past behavior and offer mass customization of their product lines (e.g., Dell's system of allowing buyers to choose features of their computers).

Improved matching of customers to products has two impacts on market outcomes. In some markets, e-commerce primarily lowers prices, while in others it spurs product differentiation and price discrimination. Prices fall in some markets, particularly those for homogeneous goods, for two reasons. When it becomes cheaper for consumers to search among the prices of competing retailers, demand for any one seller's product becomes more elastic, retailers must compete more directly with each other on price, and prices fall. Prices also drop due to disintermediation.

 When e-commerce cuts middlemen out of the sales channel, such as when a customer directly buys books from Amazon or computers from Dell without visiting a physical store, then costs arising from wholesaling are avoided. While B2C e-commerce trades lower wholesaling costs for increased shipping costs (since firms must individually transport products to the consumers' sites), often the savings are large. B2C practices also reduce labor costs through elimination of retail floor sales help, reduce the need to carry inventory at multiple retail sites (which also reduces theft from inventory), and reduce real-estate rental costs.

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