Benefits of E-commerce
Electronic commerce is a business strategy, where firms and individuals conduct business over the internet. There are four major market segments involved in this type of transaction:
- Business to business
- Business to consumer
- Consumer to consumer
- Consumer to business
Technology has immensely contributed towards improving the model of conducting business, given that all products and services are available online. E-commerce has enabled companies to effectively and efficiently distribute goods and services since they can reach a broader and cheaper market.
Amazon is one of the first firms in the world to conduct the online sale of products and services. Currently, there are several individual sellers doing business successfully over the internet. Prospective buyers can be able to access websites, select goods they intend to purchase, and wait for the delivery at their convenient locations. E-bay is also a reliable online firm, where several buyers and sellers interact online to conduct business. Companies have accomplished E-commerce as a result of the numerous technological inventions such as faster internet connectivity and powerful online resources. Despite making such tremendous contributions, it also has advantages and disadvantages:
Advantages
- It is very convenient, given that you can be able to conduct business anytime since there is no opening and closing time. You only require access to the internet and a laptop to buy and sell online.
- Customers have the opportunity to select several goods and services online.
- There is very high competition globally; consequently, most online stores can provide consumers with an excellent inventory.
- It’s also simpler and faster to conduct business online.
- You’re also able to reach customers globally since there is no physical location, and goods are delivered worldwide.
- There are very minimal costs of conducting business online, and the quality of services is considerably high because of stiff competition to meet international standards.
- There is minimal capital required to establish and run a business online.
Dis-advantages
- There is no customer support officer to physically offer customer care, consequently hindering the provision of excellent services. Some websites have 24/7 online customer support, but this is not 100% satisfactory.
- There is also a lack of immediate satisfaction since you must wait for the item to be delivered, which might also delay due to technical issues.
- There is limited access to product information. Sometimes information published online might be inaccurate. You might be disappointed if the products purchased online don’t meet expectations. For example, a dealer exporting cars might not be able to disclose online whether a vehicle has an accident history.
- You are at risk of losing funds to fraudsters since there are minimal requirements to start a business online.
- E-commerce might be affected by unforeseen circumstances like poor internet connectivity and power blackout.
- It is not possible to maintain customer loyalty, given that there is a lack of direct customer to business interaction.