Advantages and Disadvantages of Electronic Commerce

Ecommerce or Electronic Commerce is the act of electronically buying or purchasing of goods over the Internet or on online auctions. It is the fastest growing sector in the field of ecommerce. Ecommerce allows people to do business with each other that could not be done physically, or at a physical store. The transactions can be carried out through several means, such as the Internet, phone and fax. This enables people to purchase or sell products at their convenience.


The advantages of ecommerce are that it is cheaper than physical stores because there is no need for large numbers of sales assistants, inventory clerks, and delivery persons. Also because goods can be bought or sold at any time, it makes it easier for consumers to decide where to buy goods. Ecommerce also helps cut down on costs for the suppliers because they have no need to send their goods to a store where they can get their goods packaged and shipped to their clients.

Another advantage of ecommerce is that consumers like to shop from the comfort of their homes, which results in the growth of internet commerce. For example, clothing retailers have seen a 10% increase in retail sales due to ease of finding clothes. The use of the internet also reduces costs because it is possible to buy goods for less than what is cost-effective for the retailer.

There are many advantages to ecommerce. Most ecommerce businesses are fully automated and there is a greater variety of goods and services online than offline. Because of these consumers tend to buy goods and services online more frequently than offline. Online businesses also offer a wide range of products and services that their offline counterparts may not offer. Online businesses are able to reach a larger customer base because of the ease of shopping.

There are disadvantages to electronic commerce. The disadvantages include problems associated with the security of credit card transactions. E-commerce can be difficult to monitor and may result in losses due to identity theft. Also, consumers are less likely to spend money online because they do not see the goods physically. This means that ecommerce businesses must provide consumers with an effective means to cancel or make returns if they are unsatisfied.

Ecommerce can have both advantages and disadvantages, depending on the type of consumer and the type of business being conducted. Ecommerce has increased the popularity of traditional mail-order business, but it has also created new opportunities for marketers. Ecommerce businesses can offer consumers more products and services at cheaper prices through the use of electronic commerce. Consumers are also more likely to spend money online, which allows businesses to offer a wider variety of goods and services. Electronic commerce can be a viable option for marketers, especially those who have a business plan that involves the use of technology.

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