Advantages and Disadvantages of an E-commmerce Website

 Advantages and Disadvantages of an E-commerce Website

(Javatpoint, 2022)

There are a number of benefits to doing business online, including the convenience of being able to access customers and customers data from anywhere, and the ability to reach a wider audience more easily. Understanding exactly how e-commerce works can help individuals use it to their advantage and their business:

1. Lower cost: E-commerce platforms make running a business online relatively affordable and easy, without having to spend a lot of money on upfront costs. Business people no longer have to spend huge budgets on TV commercials or billboards, nor do they have to factor in personnel and real estate costs.
2. A large market: E-commerce allows people to sell their products to a large audience quickly and easily. E-Commerce platforms give business owners the opportunity to reach customers from the comfort of their homes. Customers can make any purchase at any time and anywhere, and more and more people are using their mobile devices to shop.
3. More opportunities for selling: Business people can not give out a lot of information about a product in a physical store. Besides that, eCommerce websites give merchants the space to include more information like reviews, demo videos, and customer testimonials that can help increase conversion.
4. Personal messaging: E-commerce platforms make it easy for businesses to provide personalised content and product recommendations to new customers. Targeted communications can help increase conversion by showing the most relevant content to the visitor.
5. Ability to Scaling Up (Or Down) Quickly Also Unlimited “Shelf Space”: Space is not the only limiting factor for the growth of an online business. Logistics can be an issue as your business grows, but it's not as difficult as running a physical store. E-commerce business owners end "shelf space" in response to consumer market trends and demand.(Prasanna, 2022)

(Bhasin, 2022)

 

Running an online business can be difficult. There are some unique challenges to this business model that business people need to be aware of in order to avoid common pitfalls:

1. Lack of personal touch: Some customers appreciate the personal touch that is offered when visiting a physical store by interacting with the sales associates. For businesses that sell high-end products, providing personal touch is especially important so customers have a great experience and buy the products.
   
2. Product and price comparison: Online shopping allows customers to compare several products and find the lowest price. This forces many companies to compete on price and reduce the profit margin, which reduces the quality of products.
3. Long delivery periods
4. Credit card fraud is a problem for online businesses, as it is a natural and growing trend. Using chargebacks can lead to a loss of penalties, revenue, and a bad reputation.
5. Make sure your customers can access the Internet before buying from you. Many eCommerce platforms have features and functionalities that require a high-speed Internet connection for an optimal consumer experience. If a company excludes visitors who have slow internet connections, they may be limiting the reach of their business.(Yang,2010)

References

Bhasin, H., 2022. 16 Disadvantages Of E-commerce - Problems with E-commerce. [online] Marketing91. Available at: <https://www.marketing91.com/disadvantages-of-e-commerce/> [Accessed 12 July 2022].

Javatpoint, 2022. Advantages and Disadvantages of E-Commerce - Javatpoint. [online] www.javatpoint.com. Available at: <https://www.javatpoint.com/advantages-and-disadvantages-of-e-commerce> [Accessed 12 July 2022].

Prasanna, 2022. Advantages and Disadvantages of E-Commerce | What are E-Commerce Advantages and Disadvantages?. [online] A Plus Topper. Available at: <https://www.aplustopper.com/advantages-and-disadvantages-of-e-commerce/> [Accessed 12 July 2022].

J. -x. Yang, H. -x. Zhao and J. Wan, "Research on the Advantages and Disadvantages of Online Shopping and Corresponding Strategies," 2010 International Conference on E-Product E-Service and E-Entertainment, 2010, pp. 1-3, doi: 10.1109/ICEEE.2010.5660278.