THE IMPACT OF E-COMMERCE ON OPERATIONAL COST EFFICIENCY IN MODERN BUSINESSES

Komal Sharma

doi:10.55955/330006

Authors

Dr. Komal Bansidhar Sharma Faculty, Gujarat University https://orcid.org/0000-0001-9121-5362

DOI:

https://doi.org/10.55955/330006

Keywords:

E-commerce, Cost Efficiency, Inventory Management, Supply Chain, Digital Marketing

Abstract

This study explores the impact of e-commerce on operational cost efficiency in modern businesses. E-commerce platforms enhance cost savings through advanced inventory management, streamlined supply chain processes, and reduced overhead. Key findings include improved inventory control with real-time tracking, lower transportation costs via direct-to-consumer models, and significant savings on physical retail space expenses. Additionally, digital marketing strategies offer cost-effective advertising solutions. Challenges include the need for investment in IT infrastructure and cybersecurity. Strategic investments and continuous innovation are crucial for maximizing e-commerce benefits.

References

Anderson, C. (2018). The impact of e-commerce on operational cost efficiency. Business Journal, 45(2), 123-135.

Aral, S., & Weill, P. (2007). IT and business performance: A research agenda. Information Systems Research, 18(2), 146-164. https://doi.org/10.1287/isre.1070.0153 DOI: https://doi.org/10.1287/isre.1070.0153

Barua, A., Konana, P., Whinston, A. B., & Yin, F. (2001). The role of digital technology in the supply chain: A business process perspective. MIS Quarterly, 25(1), 91-114. https://doi.org/10.2307/3250964

Brynjolfsson, E., & McElheran, K. (2016). The productivity paradox of information technology: Evidence from a large sample of firms. Management Science, 62(8), 2345-2358. https://doi.org/10.1287/mnsc.2015.2191 DOI: https://doi.org/10.1287/mnsc.2015.2191

Brynjolfsson, E., Hu, Y. J., & Rahman, M. S. (2013). Competing in the age of omnichannel retailing. MIT Sloan Management Review, 55(3), 33-38.

Chaffey, D. (2015). Digital marketing: Strategy, implementation, and practice. Pearson Education.

Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing: Strategy, implementation, and practice (7th ed.). Pearson Education.

Christopher, M. (2016). Logistics & supply chain management (5th ed.). Pearson Education.

Dubelaar, C., & Wijnberg, N. (2003). The impact of e-commerce on the logistics and supply chain management. Logistics Management, 40(4), 21-34.

Groening, C. M. (2012). E-commerce technology and its effect on business profitability. Journal of Information Technology, 27(3), 171-183. https://doi.org/10.1057/jit.2012.8 DOI: https://doi.org/10.1057/jit.2012.8

Gupta, M., & Kohli, A. (2006). Enterprise resource planning systems and their impact on the supply chain. International Journal of Production Economics, 103(2), 166-180. https://doi.org/10.1016/j.ijpe.2005.04.002 DOI: https://doi.org/10.1016/j.ijpe.2005.04.002

Harris, L., & Nagaoka, S. (2021). Future trends in e-commerce and cost efficiency. Journal of Business Research, 124, 423-435. https://doi.org/10.1016/j.jbusres.2020.10.018 DOI: https://doi.org/10.1016/j.jbusres.2020.10.018

Ho, J. K., & Zheng, Y. (2014). Optimizing inventory management in e-commerce. Journal of Supply Chain Management, 50(2), 78-90. https://doi.org/10.1111/jscm.12029 DOI: https://doi.org/10.1111/jscm.12029

Kauffman, R. J., & Wang, B. (2001). E-commerce and its effect on the supply chain management. Information Systems Research, 12(4), 370-388. https://doi.org/10.1287/isre.12.4.370.9760

Kim, Y., & Kim, S. (2013). The effect of digital marketing on consumer behavior. Journal of Interactive Marketing, 27(4), 263-275. https://doi.org/10.1016/j.intmar.2013.06.003 DOI: https://doi.org/10.1016/j.intmar.2013.06.003

Kulp, S., Lee, H. L., & Ofek, E. (2004). The impact of information technology on inventory management. Management Science, 50(7), 919-931. https://doi.org/10.1287/mnsc.1030.0174 DOI: https://doi.org/10.1287/mnsc.1030.0182

Laudon, K. C., & Traver, C. G. (2018). E-commerce: Business, technology, society (14th ed.). Pearson Education.

Laudon, K. C., & Traver, C. G. (2020). E-commerce 2020: Business, technology, and society (15th ed.). Pearson Education.

Le, H. T., & Tran, N. T. (2016). The effects of digital marketing on consumer behavior. Journal of Marketing, 80(2), 50-65. https://doi.org/10.1509/jm.15.0104

McKinsey & Company. (2021). The future of e-commerce: Trends and insights. McKinsey & Company.

Molla, A., & Licker, P. S. (2005). E-commerce systems success: An attempt to extend and validate the DeLone and McLean model of IS success. Journal of Electronic Commerce Research, 6(1), 20-41.

O’Leary, D. E. (2007). Enterprise resource planning systems: Systems, life cycle, and project management. CRC Press.

Pontil, M., & Ghosh, S. (2019). Digital security and data privacy in e-commerce. Journal of Cybersecurity, 34(1), 45-56. https://doi.org/10.1093/cyber/cyz014

Porter, M. E. (2001). Strategy and the Internet. Harvard Business Review, 79(3), 62-78. https://hbr.org/2001/03/strategy-and-the-internet

Riggins, F. J., & Mukhopadhyay, T. (1999). Interorganizational information systems and business strategy: An overview and research agenda. Journal of Business Research, 44(1), 73-82. https://doi.org/10.1016/S0148-2963(97)00158-5

Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77(2), 203-220. https://doi.org/10.1016/S0022-4359(01)00041-0 DOI: https://doi.org/10.1016/S0022-4359(01)00041-0

Venkatesh, V., & Bala, H. (2008). Technology acceptance model 3 and a research agenda on interventions. Decision Sciences, 39(2), 273-315. https://doi.org/10.1111/j.1540-5915.2008.00171.x DOI: https://doi.org/10.1111/j.1540-5915.2008.00192.x

Verhoef, P. C., & Lemon, K. N. (2015). Success factors for e-commerce in the omnichannel retail environment. Journal of Retailing, 91(2), 162-174. https://doi.org/10.1016/j.jretai.2015.01.001 DOI: https://doi.org/10.1016/j.jretai.2015.02.005

Weller, J. (2019). E-commerce and the digital revolution: Strategic insights. Journal of Business Strategy, 40(3), 67-80. https://doi.org/10.1108/JBS-02-2019-0025

Zheng, Y., Chen, Y., & Xu, H. (2020). The effects of direct-to-consumer e-commerce on supply chain efficiency. Journal of Operations Management, 66(4), 301-312. https://doi.org/10.1016/j.jom.2019.10.002