Friday 29 April 2022

ADVANTAGES AND DISADVANTAGES OF E-COMMERCE

  




 E-commerce is the process of buying and selling of goods and services on the internet. This is a wide range market. It makes easy for sellers and buyers to sell and buy products and services all over the world without any restrictions. But it has its own advantages and disadvantages which are run simultaneously. 

ADVANTAGES OF E-COMMERCE 

1) LOWER COST- Online business reduces the cost of products because Online business is running without dealers, middle man and suppliers etc. Company has direct contact with their customers. So, it reduces the cost of middle man. 

2) ECONOMY -E-commerce is the economical. There is no need for physical store, insurance and infrastructure investment. In this, business runs world widely without an infrastructural investment. 

3) HIGHER MARGIN- E-commerce has high margin profit because there is less investment and world wide market available. 

4) GLOBAL REACH- E-commerce provides the seller a global reach. All geographical barriers are removed because there is no need to infrastructural investment all over the world. It makes easy for sellers to sell their products world widely without any difficulty. 

5) BETTER CUSTOMER SERVICES- web based customer services are more convenient then calling to a company and involved in time consuming process. Web merchants give their customers a direct access to their accounts which is easy and time saver for  both. 

6) QUICK COMPARISON SHOPPING- E-commerce helps their customers in comparing products and their prices. It makes easy for them to choose as per their needs and requirements without taking much efforts. 

7) KNOWLEDGE MARKET- E-commerce helps create knowledge market,  small groups inside big firms can be funded with money to develop new ideas which helps in boosting the business. 

8) INFORMATION SHARING AND CONTROL- electronic market place helps in improving information sharing between merchants and customers. All promotional and product related information and delivery services are easy handled. 

9) CUSTOMIZATION- digital products are highly customized. They are easily recognized, revised or added according the information about customers taste and requirements.

10) DELIVERY SERVICES- E-commerce provides quick delivery services and better communication with their customers and customer complaints are also addressed quickly. This is a 24×7 functioning business. 


LIMITATIONS/ DISADVANTAGES OF E-COMMERCE

With many advantages, e-commerce has some  disadvantages or limitations or draw backs also. Which are discussed below:

1) SECURITY- security continues to be a problem for online business. Many threats are there in online businesses regarding information stealing, money theft etc. This creates a problem for online business. 

2) START UP COST- start up cost of E-commerce is very high. The setup of hardware and software, training cost of employees, constant maintenance etc. are very high expenses which are involved in online businesses. 

3) HIGH RISK OF FAILURE- E-commerce is an online business plan which increases the risk of failure. Because companies are running on dot com and no physical presence is there, there is hard for people to rely upon it.

4) SYSTEM AND DATA INTEGRITY- data protection and integrity of the system are serious concerns for online businesses. Because viruses cause unnecessary delays, file backups, storage problems etc. Creates problems for online businesses and reduces the trust of their customers. 

5) INTERMEDIARIES –online market has wider range, where sellers and buyers have no boundary restrictions in sharing information and in trading in the absence of intermediaries. But in reality, online business also needs intermediaries of new types which causes to add up in transaction costs. 

6) CUSTOMER SATISFACTION- Online purchasing is not appropriate for every product. Because some products need physical touch at the time of purchasing.  For example- buying furniture need more attention with  physical touch. 

7) SEARCHING AND DOWNLOADING- customers are not aware of all search methods. So, sometimes it becomes Time consuming. Sometimes website also takes lots of time to download because of graphics etc.

8) SHIPPING- Online business is running with the help of shipping and handling services, but it is an extra charge with purchasing of a product. 

9) INTERNET- internet play important role in e-commerce. But sometimes, poor internet connection, heavy internet traffic, loading time etc. may cause lots of problems. 


With all its advantages and disadvantages, e-commerce is still a wider range market for businesses which helps in expanding business worldwide. Every year, e-commerce grows up and overcome its problems. Because it is a modern technology for business. 



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ADVANTAGES AND DISADVANTAGES OF E-COMMERCE

    E-commerce is the process of buying and selling of goods and services on the internet. This is a wide range market. It makes easy for se...