E Commerce – Advantages and Disadvantages


E Commerce’s use of the internet for buying and selling goods and services. Electronic commerce or e-commerce for short can be traced back to the electronic transfer of funds. Since then it has grown and is now used extensively. The best example of e-commerce is the purchase of an item on the internet using a credit card. The money is transferred to the supplier and the buyer will receive their order by mail.

Like any business, E Commerce has its advantages and disadvantages. Here are some of them –


• Global Reach: This is the greatest advantage of electronic commerce. It allows companies and individuals to reach world markets. Companies are not bound by geographical boundaries and can accommodate local, national and international markets. Time limits can also be overcome by electronic commerce. Customers can shop the same time of day as it increases sales and profits.

• It gives people the opportunity to look for the best deals. One can research the product he or she wants to buy and may have the product at a much cheaper price. Sometimes the original manufacturer can be located and the product can be obtained at a big discount. Customers also get the chance to read reviews posted by previous buyers before making the purchase.

• E Commerce reduces the cost of business by reducing the cost of marketing, customer care and inventory management. It allows companies to market their products on a large consumer base at a significantly reduced cost. This savings in costs means more profit and better customer care

Disadvantages .:

• Many people still do not have access to the internet due to the poor condition or lack of knowledge. Most people do not trust the impersonal financial transactions made online and not use the Internet for any business.

• People want to shop for perishable items such as food in the traditional way rather than using the Internet. The time required for these goods is the destruction of it. A great investment is required to achieve market perishable products and investment guarantee success.

• If delayed transmission you have to make some calls and write some email. Returning to the order and get a refund is also very difficult. You will bear the cost of the consignment in such cases.

Advantages E Commerce more than disadvantages and that so many companies using ecommerce. It is to be constantly modified to suit the needs of their customers and this is helping to build confidence in the system. More and more people are using ecommerce daily.


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