The Impact of Information Technology on Wholesale Trade

Over the past few years, e-commerce has dominated the business field as more and more people embracing it in their business activities. A lot of entrepreneurs, who could have never become business owners have adopted the technology to run their businesses through the internet. This has brought a lot of efficiency to these entrepreneurs since they require limited amounts of capital to start their businesses and run them. Some of the requirements that a beginner needs to have whenever they intend to open an e-commerce business are some internet connection. This would ensure that they can access the internet, where they would be transacting business with their customers.

The other thing that the entrepreneurs are required to have is an online platform such as a website or a social media account. This is where they expect to place their merchandise for purchase by potential customers. This would also be the platform where they would put all the relevant information regarding the products or services that they are placing on sale so that the customers can access it and use it to make rational decisions regarding their purchases. The last thing that they should have is the product or service that they intend to sell to the interested customers. With the combination of all these aspects, the merchant is free to engage in trade and sell their products to their customers.

One of the areas of trade where e-commerce has significantly impacted is on the wholesale business. The wholesalers can never be happier after the introduction of information technology in the sales of their goods. Before the introduction of IT in the sector, wholesalers used to increase their sales by opening more branches in various parts of the country. This would increase their cost of operations and hence impact negatively on their revenue. After the emergence of e-commerce, the wholesalers are rejoicing since they had to close all the physical branches and start managing a mega business through the internet. One of the beneficiaries of the e-commerce initiative is a company that sells cartilage pens in the United States. Through the creation of a website by the address, https://ojivape.com/category/oil-cartridge-pens/, this company managed to cut its costs and increase its sales due to the access of a broader market through the internet.

However, despite the massive pile of benefits that the companies, and primarily the wholesalers are enjoying from e-commerce, there are a few demerits that have been associated with the initiative. One of the disadvantages of embracing e-commerce is the loss of jobs for many employees. Before the introduction of e-commerce, the wholesalers relied on casual workers to sell their products and services to the customers outside their location. Anywhere that they established a branch, they had to employ some workers, who would run the promotion in the area with the intention of increasing their market reach. However, after e-commerce came into place and the sales activities transformed from physical to virtual, the essence of the employees became redundant, and hence they had to be retrenched. This was a blow to them and their family members who relied on them for provision.

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