ADVANTAGES AND DISADVANTAGES OF E-COMMERCE

by

MIR GHULAM MURTAZA2K12/B.B.A/2014

Buying and selling of goods and services or transferring funds and data over an electronic network primarily internet.

What is E-commerce?

Time saving : Is the reason number one for using electronic commerce. People now have access to their money and what they need to buy from home and work all from a desktop computer.

Consumers have an access to a wider range of products : company now can use internet sites as shop fronts, so consumers can browse, buy from many different sellers and making it easier to find exactly what they are looking for.(Easy buying )

Advantages' of E-commerce

Allows small businesses to mix with the big business online :

with a relatively small cost, a new business can set its self up to conduct transactions online.

Provide benefits to suppliers of goods and services:

company now can target a wider variety of consumers even take the product or service international, allowing them a means of supplying their goods to places that were before unreachable.

Business is Open 24 x 7 x 364 7/12: It works while you play or sleep. They are open

for business every hour of the day, every day of the week, every week of the year. Your receptionist, greeter and front people are always working for you because they are your website. They do not complain about the long hours.

Help protect against frauds and theft losses : Electronic payments can be easier to monitor than payments are made by cheque. (electronic credit and debit transfers, allowing customers to make payments from their bank accounts for utilities, mortgage loans, and other types of bills)

Purchase to Delivery : when making a purchase at a brick and mortar

business, you get the product when you pay for it. On the web. The consumer will have to wait for delivery of physical goods.

Inability to Feel the Physical: it is nearly impossible to sell things like furniture

and tires online. Furniture is something people like to sit on and know the feel. Tires need to be installed once purchased., there is a need for real actions to fulfill the reason for the purchase. things like food, jewelry, antiques etc. can never turn to E-commerce.

Disadvantages of E-commerce

Trouble recruiting employees : The company needs well-expert and skilled

staff to keep up and create the ecommerce facilities of the company.

Consumers feel less confident with their credit card numbers :

Most of the consumers are still not confident in providing their credit card numbers for making payments on  the website while shopping on the Internet.

Not every company can take the benefit :

Some of the small companies may not be able to take the benefit of E-commerce for example the lack of expertise and lack of technology. The legal environment in which E-commerce is conducted is full of unclear and conflicting laws. It should be noted that mostly these disadvantages stem from the newness and rapidly growth of the technology.