Advantage and Disadvantages of Electronic Commerce(E-Commerce)

The Advantages of E-Commerce

#1. Cost Effective

The entire financial transactions will eventually become electronic, so sooner conversion is going to be lower on cost. It makes every transaction through e-commerce payment a lot cheaper.

#2. Higher Margin

E-commerce also enables us to move better with higher margin for more business safety. Higher margin also means business with more control as well as flexibility. You can also save time from the e-commerce.

#3. Better Productivity

Productivity here means productivity for both companies and customers. People like to find answers online because it is faster and cheaper, and it costs a lot cheaper expense as well for the company.

#4. Quick Comparison

E-commerce also enables you to compare price among several providers. In the end, it leads you to smart shopping. People can save more money while they shop.

#5. Economy Benefit

E-commerce allows us to make transaction without any needs on stores, infrastructure investment, and other common things we find. Companies only need well built website and customer service.

The Disadvantages of E-Commerce

#1. Security

Customers need to be confident and trust the provider of payment method. Sometimes, we can be tricked. Examine on integrity and reputation of the web stores before you decide to buy.

#2. Scalability of System

A company definitely needs a well developed website to support numbers of customers at a time. If your web destination is not well enough, you better forget it.

#3. Integrity on Data and System

Customers need secure access all the time. In addition to it, protection to data is also essential. Unless the transaction can provide it, we should refuse for e-commerce.

#4. Products People

People who prefer and focus on product will not buy online. They will want to feel, try, and sit on their new couch and bed.

#5. Customer Service and Relation Problem

They sometimes forget how essential to build loyal relationship with customers. Without loyalty from customers, they will not survive the business.