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Advantages and Disadvantages of Electronic Commerce

With the various pros and corns of E-commerce System the benefits are overweight the drawbacks. A good strategy can build a sound image of your ecommerce site in customers mind. And can also change the overlook and present concerning affairs to help the E-commerce to adapt the changing needs of the world

Electronic Commerce or E-commerce is all about selling and purchasing the product and services supported by electronic payment system. The system was introduces in 1970 with electronic data interchange. E-commerce refers to a commercial transactions that involves the transfer of information over the internet. With the rapid growth in online shopping websites like: Amazon and EBay were introduced. It has made the market place for businesses and consumer to make trade and transaction across the world. As like all business, electronic business is also have some benefits and drawbacks. Let’s go through the advantages and disadvantages of E-commerce.


  1. Using E-commerce site will reduce the cost associated with customer’s base, customer’s satisfaction and higher sales it produces.
  2. The overheads associated with running a retail store will reduced because the transaction is done through a website and not through a pointing store, also the cost of lighting, renting, staffing and restocking a store will completely eliminates.
  3. It enables the business to reach in global markets with national and international demands. And your business activity is no longer associated with any geographical restrictions.
  4. With ecommerce even small business can access the global markets for selling and buying of goods and services.
  5. The transaction is carried out 24 hours a day and on holidays and weekends, thus leads to increase in profit and sales.
  6. It has also benefited the customers for cheaper product at fine quality. Sometimes a customers can find original manufactures to purchase the product at low rates than that of wholesale or retailers.

For Consumers, the greatest advantages lie in its convenience, selection, customization, price comparison, and potential cost savings. Shopping can be done at any time by the use of website, so there no need to go home from work to buy an item before the shop is closed. Individuals can compare prices to find the lowermost and often the item can be delivered to their front door.


  1. The person who is running the site must keep the site open for 24 hours since it is running on the global level, there is morning in some parts of the world.
  2. E-commerce website need more attention and takes more money to pay for the programmers to make the site at the first place. The sites should always be updated with new product, discount coupons and new deals otherwise the people will not return to site again.
  3. Anybody can make a website and drive a competitions in market and spend extra money on new multimedia features.
  4. With E-commerce the consumer cannot interact with original dealer with physical existence like the traditional commerce has.
  5. E-commerce takes much time for delivery of goods than that of physical stores. Also not every goods can be purchased online, so even to the extent that e-commerce is useful, it isn't useful in all areas or for all purchases.

Some sites may be fake and desire to take info or get a consumer to waste money on faulty goods. When allowing for making an electronic purchaseFree Web Content, a consumer should study whether the expediency balances the artificiality. The goods they want to purchase is actually can be purchased online? And what are the security measures to ensure your personal information? This question should be arise when you opt for online shopping.

Article Tags: Electronic Commerce

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Patrick Danial is Marketing Manager At IBS (International Bank Services) exploring his views about Ecommerce and making deliberate efforts to bring advanced features with internet marketing.For more info visit us on -

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