Article1997

The impact of electronic commerce on consumer and organizational costs

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E-commerce and Technology Innovations Supply Chain and Inventory Management Digital Platforms and Economics

Abstract

The general conclusion of this study is that the benefits of electronic commerce to consumers (primarily reduction of search costs and prices), and organizations (reduction of market interface and production costs, expansion of market presence, and creation of new sources of revenue) outweigh any increase in costs. Therefore, there are economic incentives for consumers and many types of organizations (product/service providers, transaction brokers, and interactive service providers) to participate in electronic markets and organize as electronic hierarchies to create products and services.

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