Advantages and Disadvantages of E-Commerce

Today we’ll read the Advantages and Disadvantages of E-commerce in details. The global nature of e-commerce technology, low cost  of opportunities, to read hundreds and millions of peoples, interactive nature, variety of possibilities and forcefulness and rapid growth of supporting infrastructure, result in many possible benefit to organization, individual and society. The following are the advantages of E-commerce.

advantages and disadvantages of ecommerce



Advantages and Disadvantages of E-Commerce

Advantages to Organizations

Electronic commerce expands the market palace to national and international market with minimum capital. A company can easily and quickly locate more customers, the best supplier and the most suitable business partner worldwide. E-Commerce decrease the cost of creating, processing, distributing, storing, and retrieving paper based information. Ability for creating highly specialize business. For example; dog toys which can be purchase only in pet’s shops or department and discount store in the physical world are sold now online on several website.

EC reduce inventory and overhead by facilitating “Pull” type supply chain management. In a full type system the process starts from customer order and using just-in-time manufacturing. E-commerce reduces time between the outlay of capital and the receipt of product and services. E-commerce initiate business process re-engineering project. Electronic commerce lower telecommunication cost. Other advantages include improved image, improve customer service, found new business partner, simplify process, delivery time, increase productivity, eliminating paper, easy access to information, reduce transportation cost and increase flexibility.

Advantages to Consumers

The advantages of e-commerce to consumers are as follow:-

EC enables customers to shop or do other transactions 24 hours a day, all year round, from almost any location. EC provides customer with more choice, they can select from many vendor and from more products. EC frequently provide customer with less expensive products and service by allowing them to shop in many places and conduct quick comparison.  EC allow quick delivery, customer can receive and transmit information in seconds. EC makes it possible to participate in virtual auction. EC allow customer to interact with customer in second. Electronic commerce facilitates competition, which results in discount.

Advantages to Society

The advantages to society are the following:-

EC enable individuals to work at home and to do less traveling for shopping resulting in less traffic on the road and lower air pollution. EC allows some merchandize to be sold at lower prices, so people can buy more and increase their standard of living. EC enables people in third world countries and rural areas to enjoy products and services that otherwise are not available to them. EC facilitates delivery of public services, such as health care, education, and distribution of government social services at a reduced cost and/or improved quality.

Advantages and Disadvantages of E-Commerce

Disadvantages of E-Commerce

The limitations and “disadvantages of e-commerce” can be grouped into Technical an Nontechnical categories.

Technical Disadvantages of E-COMMERCE

There is a lack of system security, reliability, standards, and some communication protocols. There is insufficient telecommunication bandwidth for communication. The software development tools are still evolving and changing rapidly. It is difficult to integrate the Internet and e-commerce software with some existing applications and databases. Vendor may need special Web server. Some E-commerce software might not fit with some hardware or may be incompatible with some operating system or other components.

Non-Technical Disadvantages

  • The issues are especially important in the business to consumer area. The customers perceive these issues as very important and e-commerce industry is very long and difficult task of convincing customer that online transaction and privacy are, in fact very secure.
  • Customers do not trust an unknown faceless seller, paperless transaction, and electronic money. So switching from Physical to virtual store may be difficult.
  • Some customers like to touch items such as clothes and to know exactly what they are buying. Electronic commerce as discipline still evolving and changing rapidly.
  • There are not an enough support services for example copyright, clearance center for e-commerce transaction do not exist.
  • Accessibility to the Internet is still expensive.

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