Javatpoint Logo
Javatpoint Logo

Advantages and Disadvantages of E-Commerce

In this article, we are going to discuss the advantages and disadvantages of E-Commerce.

This post is going to be very helpful to you and give you complete information about the benefits and limitations of E-Commerce. This article can also be beneficial for students to write an essay or make their presentation on the pros and cons of E-Commerce. So, without any delay, let's start the topic.

Before going to benefits and limitations, let's first see a brief description of E-Commerce.

What is E-Commerce?

E-commerce is also referred to as Electronic commerce or internet commerce. It is the process of selling and buying goods as well as services via internet. Some popular e-Commerce platforms are Shopify, WooCommerce, BigCommerce, Magento, Wix, and Squarespace.

Advantages and Disadvantages of E-Commerce

There are four types of Ecommerce models - Business to Consumer (B2C), Business to Business (B2B), Consumer to Consumer (C2C), and Consumer to Business (C2B).

E-commerce can be drawn on many technologies such as mobile commerce, Internet marketing, online transaction processing, electronic funds transfer, supply chain management, electronic data interchange (EDI), inventory management systems, and automated data collection systems. It has various benefits and limitations.

E-Commerce has various features, such as -

  • Improved sales - E-Commerce gives a large improvement in existing sales volume. Using e-commerce, we can generate orders and products from any time, anywhere, without any human intervention.
  • Cashless Payment - E-Commerce allows the use of electronic payment. It allows the transaction from credit cards, debit cards, electronic fund transfer via bank's website, and other electronic payment methods.
  • 24x7 availability - E-Commerce provides 24x7 service availability. It is available anywhere, anytime. It automates the business of enterprises and their process of providing services to their customers.
  • Advertising and Marketing - E-Commerce helps in good marketing management of products and services. It helps to increase the reach of advertising of products and services of businesses.
  • Improvement in communication - E-commerce gives faster, efficient and reliable communication with customers and partners.

The features of e-commerce are not limited to the above-listed features. There are some features of e-commerce includes Inventory management and support. It provides better services to its customers.

Now, let's come to our main topic, i.e., the advantages and disadvantages of e-commerce.

Advantages of E-commerce

E-commerce is beneficial for organizations, society, and customers. So we can categorize its benefits into three categories: benefits to consumers, benefits to society, and benefits to organizations.

Advantages and Disadvantages of E-Commerce

Advantages to Consumers

There are various benefits of E-commerce to consumers that are listed as follows -

  • It is also mentioned in features of e-commerce that it provides 24x7 supports to its consumers. It provides the facility of placing orders anytime, anywhere, or from any location.
  • It provides more options to its customers and gives a faster delivery of products.
  • Users can select cheaper and better options via e-commerce as it provides more options to its customers.
  • Before the final purchase of a product, a customer can see the reviews and comments of a particular product and can also put their reviews and comments about a product.
  • It provides the information in an easy way, i.e., the information is not hard to read. A customer can see the detailed information of a product within some seconds instead of waiting for days.
  • Because of e-commerce, the competition between the organization increases, and as a result organization gives ample discounts to its customers.

Advantages to Society

There are various benefits of E-commerce to society that are listed as follows -

  • It is majorly beneficial for reducing air pollution because e-commerce customers do not require to travel, and as a result, there will be less traffic on the road.
  • It provides the facility to rural areas to access services and products that are otherwise unavailable to them.
  • E-commerce is helpful to government in delivering the public services like education and healthcare in a better way and at a minimal cost.

It is beneficial to society in many ways, as it helps to reduce pollution, and other benefits include saves time, anytime, anywhere accessibility, and many more.

Advantages of organizations

There are various benefits of E-commerce to organizations that are listed as follows -

  • Using e-commerce, paperwork is reduced.
  • With minimum investment, organizations can expand their business or market to national and international levels.
  • E-commerce helps to improve the company's brand image.
  • It is also helpful to organizations to provide better services to their customers.
  • E-commerce digitizes the information that helps to manage the paper-based information, reduce the cost of creating processes.
  • It helps to increase the productivity of organizations.

So, these are the benefits of e-commerce. Along with the above-mentioned benefits, it also has limitations. Now, let's see the limitations of using e-commerce.

Disadvantages of E-commerce

Advantages and Disadvantages of E-Commerce

The limitations of using e-commerce are mentioned as follows -

  • As there is a requirement of the internet to use e-commerce, it is possible that the internet may be slow.
  • It does not have any universal standard for reliability and quality.
  • There can be compatibility issues.
  • Security is another concern of using e-commerce. We have seen security breaches many times where the customer's information got stolen. Some of the big concerns with customers include identity theft, credit card theft, etc.
  • E-commerce uses a public key that is not secure.
  • It is a major drawback in E-commerce that there is a lack of feel or touch of products while purchasing them online.
  • It is inconvenient to use the internet for those people who are living in remote villages, and it is still not cheaper.
  • The cost of the creation and building of an e-commerce application may be very high.
  • It is hard to convince traditional users to purchase products online rather than in physical stores.
  • Sometimes, there is a risk of purchasing unsatisfactory products via E-commerce.

That's all about the article. Here we discussed E-commerce along with its advantages and disadvantages. Hope you find it informative and knowledgeable.







Youtube For Videos Join Our Youtube Channel: Join Now

Feedback


Help Others, Please Share

facebook twitter pinterest

Learn Latest Tutorials


Preparation


Trending Technologies


B.Tech / MCA