E Commerce – The Advantages And Disadvantages

E Commerce is the use of the internet for the buying and selling of goods and services. Electronic commerce or e-commerce for short can be traced back to the electronic transfer of funds. Since then it has grown and is now used extensively. The best example of ecommerce is the purchasing of an item on the internet using one’s credit card. The money is transferred to the retailer and the purchaser receives their order by mail.

Like any business, E Commerce has its advantages and disadvantages. Here are a few of them –


• Global Reach: This is the greatest advantage of electronic commerce. It enables businesses and individuals to reach a global market. Businesses are not restricted by geographical boundaries and can cater to local, national as well as international markets. Time restrictions can also be overcome with electronic commerce. Customers can shop no matter the time of the day and this increases sales and profits.

• It gives people the opportunity to look for the best deals. A person can research the product he or she wishes to purchase and may need the product at a much cheaper price. Sometimes the original manufacturer can be located and the product can obtained at large discount. Customers also get a chance to read reviews posted by previous shoppers before deciding on the buy.

• E Commerce reduces the costs of a business by reducing the costs associated with marketing, customer care and inventory management. It allows companies to market their products to a large consumer base at a significantly reduced cost. This savings in costs means more profit and better customer care.


• Many people still do not have access to the internet due to poor conditions or lack of knowledge. Most people do not trust the impersonal financial transactions done on the internet and do not use the internet for any financial transactions.

• People prefer to shop for perishable items like food in the conventional way rather than use the internet. The time required for delivering such goods is the undoing of it. A great investment is required to capture the market in perishable goods and the investment does not guarantee success.

• In case of a delayed shipment you will have to make several calls and write several emails. Returning your order and getting a refund is also very troublesome. You will have to bear the cost of shipment in such cases.

The advantages of E Commerce outweigh the disadvantages and therefore so many businesses use ecommerce. It is being constantly modified to suit the needs of its customers and this is helping to build trust in the system. More and more people are using ecommerce daily.

Source by Caroll Giles