Advantages for the Sellers
E-commerce brings lots of advantages also to the sellers. Internet is a powerful tool for creating relations with the customers. And because it is interactive, it is extra efficient marketing tool. Companies are able to electronically contact customers so that they can learn more about their needs and wishes. Online customers ask questions and voluntarily provide important feedback and companies can make their services better based on the feedback.

Internet and other electronic systems brings in the advantages like cutting costs and improving speed and effectiveness. Internet companies does not have maintain big stores and pay the rent, insurance and other fees. Companies like Amazon.com have even the advantage of getting money from the customers on another day from the purchase but pay to their suppliers (distributors of books and publishers) a month later. Companies like Dell Computer or General Electric achieved with the direct connection of factories, suppliers, distributors and customers through internet, extensive cost savings, which resulted in lower prices for their customers.

Because of customers communicating directly with the manufacturers, internet marketing often leads to lower costs and to higher effectiveness of distribution and logistic functions like processing of the orders, management of supplies, delivery and sales support. Electronic communication is usually cheaper than traditional printed. The company can create an electronic catalogue for a fraction of costs they would pay for printing and mailing of classic paper catalogues. Internet marketing as well provides flexibility because it can be adjusted anytime (like range of products and their prices).

Internet marketing tools
Internet marketing is used for the communication with customers, for promotion of products and services at company’s websites and finally it serves as a shopping medium. The actual act of shopping is most often processed at the website but there are also some other ways like e-mail but they are not used so often. In order to get customers to buy something from a company, it needs to drive enough potential customers to the website at first.

There is quite a lot of tools that internet marketing uses to satisfy the above mentioned issues. Let us take a closer look at them.