0704-883-0675     |      dataprojectng@gmail.com

EVALUATION OF THE ROLE OF E-COMMERCE IN REDUCING OPERATIONAL COST IN AN ORGANIZATION

  • Project Research
  • 1-5 Chapters
  • Quantitative
  • Chi-Square
  • Abstract : Available
  • Table of Content: Available
  • Reference Style: APA
  • Recommended for : Student Researchers
  • NGN 3000

Background To The Study

E-Commerce is the process of conducting business electronically among various entities in order to satisfy an organizational or individual objective. A key ingredient of E-Commerce, sometimes referred to as electronic trading, is the advertisement and procurement of goods and services over the Internet (Abdulrahman, 2019). The success and volume of E-Commerce on the web has been widely reported. With success in establishing an environment in which E-Commerce can grow and flourish, every computer can become a window open to every business, large and small, around the globe.

The electronic medium we call the Internet has the potential to reduce actual transaction time, processing time and operational cost dramatically, while at the same time making information available globally. Internet-based E-Commerce has been embraced as a means of reducing operational cost and as a high potential means of generating revenue (Berry , 2022). The ubiquity of the web and the availability of browsers across different platforms provide a common base upon which E-Commerce applications can be built, especially in the enterprise. This common platform has reduced the significance of issues pertaining to software distribution and software installation, thus encouraging the expansion of E-Commerce via Intranets, Extranets and the Internet.

E-Commerce provides new channels for the global marketing of tangible goods and presents opportunities to create new businesses providing information and other knowledge-based intangible products (Rhodes & Carter, 1998). Although most E-Commerce is currently at the inter-corporate and inter-organizational level, services targeted at individual customers are evolving rapidly. The Internet is the most obvious example of this and is a major catalyst in the diffusion of E-Commerce, helping to foster a common environment for electronic transactions of all kinds. E-Commerce encompasses all forms of interactive business transactions, which are facilitated by networks of computers. E-Commerce is expanding because of the greater number of businesses and individuals who are able to use these networks and the growing number of ways in which businesses can conduct transactions electronically with other organizations and directly with consumers at a reduced cost (Bonoma, 2018).

At present, business-to-business E-Commerce seems still to be of greater volume than business-to-consumer E-Commerce with the primary motive of operational cost reduction, but this may change in the future. These trends are important to the global economy and to the economy of individual countries because E-Commerce contributes to economic efficiency. E-Commerce contributes to economic efficiency in five important ways. They includes shrinking distances and timescale, lowering distribution and operational costs, speeding product development, providing more information to buyers and sellers and enlarging customer choice and supplier reach (Bloch, 2016). However, this study is focused on the role of E-Commerce in reducing operational cost in an organization.

Furthermore, when offline stores calculate operational costs, they have to factor in countless business expenditures along with the actual number of transactions. When there are fewer transactions, the cost of per transaction is higher. On the flipside, transactions arriving in high quantity can overwhelm the personnel and distributors. In an E-Commerce business, the operational cost is the same across the board, whether one order or thousands come in.

Dealdey.com was launched in March 2011and they features a daily deal on the best things to do, see, eat, and buy in Nigeria. DealDey is trying to create an easy and fun way to get fantastic deals on great experiences. DealDey.com supports local businesses and in return they support consumers with good savings. They are attempting to create a “Win-Win” scenario each and every day for local merchants who want to attract new customers, and consumers who want to save money and take advantage great services and activities in their own city.

1.2 Statement Of The Problem

Electronic commerce is a popular topic in business management, mass media and in informatics circles as well. Perhaps its impact is most visible in the areas of financial services and retailing. Many E-Commerce initiatives have risen in a short period of time(Bloch, 2016). Those initiatives include innovative smart cards to facilitate E-Commerce, remote payments and electronic checking, online trading of stocks, bonds and related financial instruments, online banking, and online retailing (e-tailing).

However, its effect on the reduction of operational cost of organization has been examined in a number of ways comparatively to brick and mortar organizations for instance the money received for every transaction will pay for the item; it will also contribute to the salesperson salary, credit card fees, lease on storefront, electricity, telephone, heating/cooling, taxes, displays, repairs and maintenance to the building(Boston, 2020). However, the money received for an E-Commerce transaction pays for the item, web hosting, shopping cart software, distribution and little else. The cost overall of maintaining a virtual store is far less than that of a brick and mortar store.

1.3 Objectives Of The Study

The following are the objectives of this study:

 

  1. To examine the role of E-commerce in reducing operational cost in an organization.
  2. To identify other benefits accruable from E-commerce in Nigeria.
  3. To identify the limitations and disadvantages of E-commerce in Nigeria.

1.4 Research Questions

  1. What is the role of E-commerce in reducing operational cost in an organization?
  2. What are the other benefits accruable from E-commerce in Nigeria?
  3. What are the limitations and disadvantages of E-commerce in Nigeria?

1.5 Hypothesis

HO: The use of E-commerce does not reduce the operational cost of an organization..

HA:  The use of E-commerce does reduce the operational cost of an organization.

1.6 Significance Of The Study

The following are the significance of this study:

The outcome of this study will educate business managers and the general public on the role of E-commerce in reducing the operational cost of business organizations.  This research will be a contribution to the body of literature in the area of the effect of personality trait on student’s academic performance, thereby constituting the empirical literature for future research in the subject area

1.7 Scope  Of The Study

This study will cover the benefits of E-commerce with special focus on its influence as regards operational cost reduction in business organizations.

1.8 Limitations Of Study

Financial constraint

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint

The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

1.9 Definition of Terms

E- commerce:   the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.

Organization: an organized group of people with a particular purpose, such as a business or government department.





Related Project Materials

PRODUCTION OF HIGH QUALITY FOAM

ABSTRACT

The production of high quality foam was carried.  The actualization of the production of polyurethane (fib...

Read more
APPRAISAL OF IMPEACHMENT PROCESS UNDER THE 1999 CONSTITUTION OF NIGERIA

Abstract

This project report centres on Appraisal of impeachment process under the 1999 Constitution of Nigeria. It x-rays basically the...

Read more
THE IMPACT OF GOOD LEADERSHIP IN OUR SOCIETY (A CASE STUDY OF GOVERNOR ADAMS OSHOMHOLE’S ADMINISTRATION)

ABSTRACT

          The major purpose of this study is to determine the impa...

Read more
ORGANIZATIONAL LEARNING AND EMPLOYEE PERFORMANCE OF SELECTED BREWERY FIRMS

ABSTRACT

This study was carried out to examine organizational learning and employee performance of sele...

Read more
THE DESIGN AND IMPLEMENTATION OF STUDENT ACCOMMODATION (BENCHMARK STUDENT PAD) APPLICATION

ABSTRACT

 

This project is aimed at developing a web application for student accommodation. It...

Read more
USE OF INSTRUCTIONAL MATERIALS BY TEACHERS IN AGRICULTURAL SCIENCE

ABSTRACT

The study examined the use of instructional materials by teachers in agricultural science, using public seconda...

Read more
ANTI-PLASMODIAL EFFECTS OF POLYALTHIA LONGIFOLIA (VAR.) LEAF EXTRACTS AGAINST PLASMODIUM BERGHEI IN MICE

ABSTRACT Malaria is one of the most debilitating tropical parasitic diseases and the greatest cause of hospitalization and death. Recurring problem...

Read more
THE ROLE OF FISCAL POLICY IN THE NIGERIA ECONOMIC GROWTH

ABSTRACT

This study was carried out to examine the role of fiscal policy in the Nigeria economy growth using Ecobank...

Read more
AN ASSESSMENT OF THE INFLUENCE OF OVERPOPULATED CLASS ROOM IN SECONDARY SCHOOLS IN LAGOS STATE

BACKGROUND OF THE STUDY

Since the ingrained firmness of western education in Nigeria, It has...

Read more
INVESTIGATION INTO THE CAUSES AND PREVENTION OF COVID-19 AMONG ALVAN IKOKU FEDERAL COLLEGE OF EDUCATION, OWERRI

Background to the study

Etymologically, Coronavirus (COVID-19) are positive-sense, single stranded RNA...

Read more
Share this page with your friends




whatsapp