In this post we are going to learn about E-Commerce , it’s advantages and disadvantages.
✅What is E-Commerce?
✅ Importance of E-commerce.
✅ Advantages and disadvantages of E-commerce.
✅What are the advantages and disadvantage of E-commerce?
✅ Characteristics of E-commerce.
Electronic commerce, or e-commerce, is a term that refers to the process of purchasing, selling, or exchanging items, services, and information using computer networks, including the Internet.All inter-company and intra-company services (such as marketing, finance, manufacturing, and selling and negotiation) that enable commerce and electronic mail, EDI, file transfer, fax, video conferencing, workflow, or interaction with a remote computer.
E-Commerce or Electronic commerce
is described as the communication and transaction of business through a network and using computers.
Characteristics of E-commerce
1.Formation of a business-to-business partnership
2. Payment by electronic means
3. Product and service e-distribution
4. Information Exchange
5. Pre- and post-sale assistance
6.Customer relationship management
Q:-Explain Various advantages and disadvantages of E-commerce?
Advantages of E-commerce
1.EnhancesConvience:Customers can place orders for goods at their leisure and from the comfort of their own homes, eliminating the need to travel to the business. In addition, orders are delivered to them at their most convenient locations. It is the most convenient purchasing choice for folks who are usually on the go.
2. Allows for product and price comparison: Customers, once again, want to receive the best deals while making purchases. Consumers can compare items and pricing using this business strategy, ensuring that the best products are purchased at the most reasonable costs.They can also take advantage of additional benefits such as discounts, coupons, and sale items, as well as get the greatest offers.
3. Easy fund-raising for startups ventures:–Many people want to start a business but don’t have the financial resources to do so. The cost of leasing a physical store might be pretty high. Startups can do business and grow more easily with the help of e-commerce.
4.Efficient : E-commerce has the benefit of being time-saving. Because most company services are automated, resources are utilised efficiently. Business owners frequently expend a large amount of resources to meet business needs, which reduces earnings. Efficiency is the lifeblood of e-commerce.
5. Customer reach: On the Internet, you can easily reach a large number of customers. An online business can enhance brand exposure and consumer base by using social media links and strong search engine optimization tactics. It also has the benefit of bringing buyers and sellers from all around the globe together.
6. Prompt payments:Online stores employ electronic mobile payment methods, which makes payment quick. For merchant accounts, the mobile wallet system boosts sales and earnings.
7. Ability to sell different products: Businesses may display and sell a wide range of products and cater to a diverse population thanks to the flexibility of doing business on the Internet.
8. Low inventory:Online merchants are not required to keep a large inventory. They can obtain goods from the producer or whole-seller to match demand after they receive the orders.
9. Minimizes the Overall Cost : Many of the physical steps that are necessary in traditional commerce are eliminated while doing business online. Overall costs are reduced as a result of better resource planning and the requirement for fewer individualised sales.
10. More “Selling” Possibilities” :–In a physical store, merchants can only present a limited quantity of product information. eCommerce websites, on the other hand, enable for more information to be included, such as demo videos, reviews, and customer testimonials, to aid conversion.
Disadvantages of E-commerce
1. Poor Quality Products:- You don’t get to see or inspect what you’re paying for before it’s delivered. As a result, buyers are at risk of succumbing to counterfeit marketing and purchasing poor goods from online stores.
2. Impulsive Purchases : Customers may make poor financial judgments as a result of impulsive purchasing since online retailers display a vast number of products.
3. Internet Scammers: Although the internet is a beneficial tool, some people have chosen to use it for the wrong purposes.Scammers have rendered this type of business model unappealing to some customers.
4. Lack of after sales support : Customers have difficulty obtaining after-sales support due to a lack of physical premises. It may take several days before a customer in need receives assistance.
5. Fast changing business environment:Technology is growing at a breakneck pace. Some business people find it tough to keep on with this process and lose a lot of money. This could make business expansion unattainable.
6. Loss of personal touch : In business, relationships are everything.The personal connection between the customer and the business owner is lost in this business strategy. Because there are so many firms that offer different possibilities, promoting loyalty in this way might be difficult.
7. Lack of privacy: E-commerce has a significant disadvantage in terms of privacy. Before making a purchase, the buyer must have to provide his personal information such as his address, name, and phone number , bank account details etc. If this sensitive data is leaked, it might result in a slew of issues for users.
Some websites acquire sensitive information in an unauthorised manner, which is why consumers are hesitant to utilise e-commerce portals since they have to provide their personal information that could be exploited.
8.Fear : People are apprehensive about working in a paperless, faceless computerised environment. Some company organisations do not have a physical presence, and people are unaware of who they are transacting business with. Individuals are more likely to shop in physical stores as a result of this factor.