Advantages and Disadvantages of E-Commerce

The invention of faster internet connectivity and powerful online tools has resulted in a new commerce arena – E-commerce. E-commerce offered many advantages to companies and customers... but it also caused many problems.

ADVANTAGES OF E-COMMERCE

·      Faster buying/selling procedure, as well as easy to find products.

·         Buying/selling 24/7.

·         More reach to customers, there is no theoretical geographic limitations.

·         Low operational costs and better quality of services.

·         No need of physical company set-ups.

·         Easy to start and manage a business.

·         Customers can easily select products from different providers without moving around physically.

·         In e–commerce there is no physical store space, insurance, or infrastructure investment. All you need is an idea, a unique product, and a well–designed web storefront to reach your customers, plus a partner to do fulfilment. This makes e–commerce a lot more economical.

    DISADVANTAGES OF E-COMMERCE

 ·      Any one, good or bad, can easily start a business. And there are many bad sites which eat up customers’ money.

·         Security continues to be a problem for online businesses. Customers have to 
    feel confident about the integrity of the 
    payment process before they commit to the purchase.

·         There is no guarantee of product quality.

·         Mechanical failures can cause unpredictable effects on the total processes.

·         As there is minimum chance of direct customer to company interactions, customer loyalty is always on a check.

·         There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways, all are always prone to attack.

Online Security is one of the major concerns of e-commerce.