Advantages and Disadvantages Of E-Commerce
Advantages of E-Commerce
Disadvantages of E-Commerce
- Business hours are 24/7: Online stores are always open, hence cutomers can enjoy an online store. Customers are able to use the store and online service at any time of day, making it applicable to customers that have to work during the day, as there are no set operning hours. This may automatically make the online bussiness more attractive and applicable to people better than an ordinary business.
- Global location: A store is located online, making it available to people all over the world. This also makes it easier for the owner of the business to manage their affairs anywhere with an internet connection.
- Lower transaction costs: Due to the business being online, this can cut costs towards wages, phone calls and general business maintainance such as rent and electricity costs.
- Easier store customisation: The process of marketing strategies that the business has to go through such as store preparation and maintainance is void, as the only thing that the bussiness must maintain is that look of the website.
- Advertisement: It is easy to find information about products online, including having search engines online that are able to display multiple products for viewing. Online advertising may also be cheaper than advertising on television, and it may reach specific types of consumers in specific demographics. Furthermore, advertising can be targeted to specific audiences depending where information is displayed, making it efficient for both the consumer and the business.
Disadvantages of E-Commerce
- Shipping: Shipping takes time. Shipping products sold from an online business can have difficulties. This can include the time needed for products to arrive, products getting lost or arriving to a different destination than the one intended, the product being insecure, or the product being damaged upon arrival. It also depends on the customs in specific countries, so there may be difficulties with products being allowed in the country of destination.
- Shipping costs: The basic shipping cost rule is simple, the heavier the product, the heavier the cost.
- Doubts and fears: Many individuals do not understant the convinience of online shopping. This is caused by the individuals being afraid that it is just a scam, and that the store is not reliable. They are also curious if the product matches the description of the website. They are also afraid that their transaction will not be safe, and that their money might be lost. Also, there are privacy issues, especially with the use of credit card details and third party access.
- Inability to fill the physical: Buying online does not allow the consumer to handle the product and see the suitability of the product for its intended purpose.
- Harmful and malicious codes: If a server associated with the store is infected, then it allows viruses and other malicious software to be downloaded on the recipient's computer.
- Shopping experience is altered: Many people associate shopping as a social experience. This is something that online shopping lacks.
- Competition: There is an extremely large number of online stores, and this can be confusing for consumers. Furthermore, this enables competition between businesses and can be disadvantagious to pricing of certain products and to the overall business.