International Journal of Science, Engineering and TechnologyAuthors: Anjanappa. T
Abstract: The rapid evolution of electronic commerce (e-commerce) has fundamentally reshaped the global business environment, offering organizations unparalleled opportunities to reduce operational costs while simultaneously enhancing efficiency, flexibility, and customer satisfaction. Unlike traditional business models, e-commerce leverages digital platforms to minimize expenses associated with physical infrastructure, inventory management, marketing, supply chain coordination, and transaction processing. Through automation, digitization, and data-driven decision-making, firms can optimize their resource allocation and achieve significant cost savings, enabling them to remain competitive in increasingly dynamic markets. However, these advantages are not without limitations. The adoption of e-commerce introduces new challenges, including heightened cyber security risks, technological dependency, logistical complexities, and issues of digital inequality that disproportionately affect small and medium enterprises and developing economies. This dual nature underscores the need for organizations to carefully balance cost reduction strategies with long-term resilience and sustainability. This paper explores the role of e-commerce in reducing operational costs, analyzing its importance, merits, and demerits, while also reviewing recent technological and managerial developments shaping its impact. Furthermore, the study highlights the broader implications of e-commerce adoption for global competitiveness and sustainable business practices, offering insights for organizations, policymakers, and future research in the digital economy.
