Cost Reduction and Efficiency Boost Through E-Commerce Strategies Pengurangan Biaya dan Peningkatan Efisiensi Melalui Strategi E-Commerce
- E-commerce,
- digital marketing,
- cost reduction,
- promotional expenses,
- business efficiency
Copyright (c) 2024 Shejn Ghalib Jawad, Abbas Hazim Mohammed
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
General Background: E-commerce has revolutionized business practices by offering cost reduction, especially in marketing, through advancements in electronics and communication, expanding reach, and reducing operational costs. Specific Background: This study investigates the potential of e-commerce in reducing marketing costs and improving business efficiency, despite challenges faced by many firms. Knowledge Gap: While extensive research exists on e-commerce, the specific relationship between e-commerce strategies and the reduction of promotional costs remains underexplored, especially in terms of practical implementation by companies. Aims: The study explores the link between e-commerce strategies and reduced promotional expenses, highlighting how digital marketing can boost profitability and reduce costs for businesses. Results: Statistical analysis revealed that companies effectively reduced advertising costs, such as salaries, bonuses, and training expenses, by utilizing e-commerce strategies. However, many firms failed to capitalize on further cost-saving opportunities in inventory management, travel, and research expenses. The t-value (17.062) and p-value (0.000) indicate a significant relationship between e-commerce strategies and reduced promotional costs. Novelty: This research provides empirical evidence on the significant cost-saving potential of e-commerce, highlighting its underutilization in areas beyond marketing, such as operational expenses. Implications: The study emphasizes the importance of integrating e-commerce into operational strategies for cost reduction and competitive pricing, providing practical insights for businesses aiming to improve efficiency and profitability.
Highlights:
- E-commerce reduces marketing costs and boosts business efficiency.
- Firms often miss broader cost-saving potential of e-commerce.
- Strong correlation found between e-commerce use and lower promotional expenses.
Keywords: E-commerce, digital marketing, cost reduction, promotional expenses, business efficiency
Downloads
References
- . A. F. Murad, Using E-Commerce for Buying and Selling Online, Dar Wael for Printing and Publishing, Amman, Jordan, 2023.
- . I. Abdul Rahman, "Gulf Countries Are Moving Towards Approving a Unified Law for E-Commerce," Kuwait, 2019.
- . A. H. Basyouni, E-Commerce, Dar Al-Kotob Al-Ilmiyah for Publishing and Distribution, Cairo, Egypt, 2023.
- . A. Naggar, "The Problem of the Tax Dimension in E-Commerce," Kuwait University, Kuwait, 2022.
- . A. Shaaban, "The Role of Banks in E-Commerce," Banks Union Magazine, vol. 28, 2014.
- . N. Qasrawi, The Environment of E-Commerce in the United Arab Emirates, First Edition, Emirates, 2021.
- . H. Rahahla and H. Hasawneh, "E-Commerce and Its Expected Effects on Revenues in the Arab World," Philadelphia University, Philadelphia, Jordan, 2021.
- . B. Nour, E-Commerce Basics, Arab Encyclopedia of Computers and the Internet, 2022. [Online]. Available: http://www.c4arab.com.
- . I. A. H. Abdul Hafeez, "A Proposed Framework for Tax Amendments Necessary for the Transition to the World of E-Commerce," Theoretical and Field Study, 2020.
- . T. Y. Al-Bakri, Marketing Management, 1st ed., University House for Printing and Publishing, Baghdad, Iraq, 2022.
- . M. T. Al-Rajbi, Cost Accounting, 3rd ed., Wael Publishing House, Amman, Jordan, 2023.