E-commerce

Electronic Commerce or E-Commerce means buying and selling of goods, products, or services over the
internet.E-commerce is also known as electronic commerce or internet commerce. ... Online stores like
Amazon, Flipkart, Shopify, Myntra, Ebay, Quikr, Olx are examples of E-commerce websites.

Advantages of E-commerce towards organizationskrao

 Decrease in cost
Th» cost incurred on advertisement and communication is lower as the business uses e-mail and online
advertising channels, The cost incurred on human resources is also low as most of the business
processes are automated. Middlemen are eliminated to a considerable extent as there is a direct link
between the business and the consumers.Due to effective supply chain, the cost incurred on
maintaining inventories is reduced.

 Effective customer service

E-commerce through internet provides up-to-date information about the business and its products to
customers. By answering customers’ queries quickly and arranging immediate delivery of goods, a
business organization is able to win the loyalty of customers. Effective communication and quick delivery
of goods lead to total customer satisfaction.

 Increase in revenues
Decrease in cost; increase in sales help the business to enjoy greater profits. The business being open
365 x 24 x 7, fetches revenues throughout the year.

 Transaction efficiency
Automation of business processes helps the business to streamline its operating processes. Efficient
procurement cycles reduce delivery delays. Minimum time taken to complete transactions also results in
transaction efficiency.

 Effective information management

E-Commerce helps business to create, process, distribute, store and retrieve any information cheaply
and quickly. The above benefits enable a business organization to remove any communication gap
between the business and consumer, or between business and business associates or between business
and its employees Advantages of E-commerce towards customers.

Advantages of E-commerce towards customers

 More informed decision-making
Information is literally at your fingertips when buying online, including.

 Product descriptions
  Usage videos
 Product guides

 Social validation
Comparison shopping is another one of the top benefits of e-commerce to consumers, who can easily
compare products, brands, and websites with even side-by-side comparison possible. Many comparison
shopping sites exist with the sole purpose of enabling consumers to compare products side-by-side
based on price and discount metrics.

 Saves time
In an age where time is a rare commodity, shopping online provides massive time savings to the
consumer. Since 63% of consumers start their shopping journey online, it makes sense to be able to buy
where you already are (Thinkwithgoogle, 2018).No need to head out, shop in-store, wait in line, and
then journey back home when you can access a greater product variety at a lower price from the
comfort of home.

 Convenient and safe

Shopping when you want from where you want is far preferable (and a whole lot safer) than heading out
in this COVID reality we’re now living in. Coronavirus aside, there’s also something to be said about
shopping from your bedroom, without having to venture out, wait in lines, battle cold weather, and all
the other challenges that go along with consumerism.

Advantages of E-commerce towards society

 It provides online marketplaces for third-party business-to-business, business-to-consumer and
consumer-to-consumer sales.
 It involves the method of online trading which is fast and time saving for both you and various
businesses.
 People can simply sit at home and shop for your favorite products on the internet via E-
commerce.
 You can purchase books and E-books (electronic books in digital format) online through many
available online services, such as Amazon.
 Purchase your favorite music in the form of digital distribution from online stores, such as
iTunes Store.
 You can book your travel tickets online quickly and also check the various schedules on the
travel agency’s website.
 It has established prospective marketing to customers by email and fax, such as newsletters.
 With the help of E-commerce, you can do your banking transactions online.
 E-commerce provides online financial exchanges for currency exchanges and other trading
purposes.
 You can order food and grocery online from various online retail services available on the
internet. You can purchase books and E-books (electronic books in digital format) online through
many available online services, such as Amazon.
 Purchase your favorite music in the form of digital distribution from online stores, such as
iTunes Store.
 You can book your travel tickets online quickly and also check the various schedules on the
travel agency’s website.

Some limitations of E-business

 Security and Integrity Issues

Hackers are adept at manipulating online business websites to harvest financial data. The
information you require of your customers – shipping address, credit card details and email –
potentially provides a valuable resource for hackers to initiate identity theft. This risk keeps
some people from shopping online. You have to assure customers of the security of their
personal data as they interact with your e-business. Ensure site integrity by investing time and
money in learning and implementing good security measures, including digital signatures and
data encryption, to protect client information lest it falls in the wrong hands and lawsuits ensue.

 Purchase to Delivery Time

As much as the internet has the advantage of processing orders and payments in real time, this
has little benefit to the customer who requires the purchased item equally fast. Unlike brick-
and-mortar businesses, purchases from your e-business typically have a time lag from purchase
to delivery of the physical goods. Some customers would rather go to the physical store and pick
up the item unless it’s of a digital kind, such as an e-book or music file.

 Momentary Intangibility
The personal touch is a missing factor in online transactions. An e-business normally offers the
customer no physical proximity to the items purchased until delivery. Experiencing the feel,
taste or smell of a product can influence the decision to buy. Unless it’s a repeat buyer, your
typical customer would want to feel the texture of the leather wallet, the comfort of the shoe or
smell the cologne before ordering. The absence of an opportunity to physically examine the
product places a major limitation of e-business.

 Sectoral Limitations
Not every company can participate in e-commerce. Some are challenged in terms of expertise
and availability of technology, while others carry products that can’t be shipped economically.
For example, some large, odd-sized items may be uneconomical to transport across state lines,
making it difficult to sell them online. Other products may be legally restricted, depending on
state and federal laws, such as certain explosives, ammunition and alcoholic beverages.

 Resistance to Online Payment

You should start by accepting that you will not always be able to satisfy every single customer
when it comes to online payments. But with credit card data thefts making regular news, you
should devote plenty of attention to how you will address online payment skepticism. One
approach is for your business to be willing to take payment information over the phone rather
than forcing customers to enter credit card numbers on your site. You can also accept checks
and other non-electronic forms of payment such as money orders. Another winning strategy is
to make clear that your site does not store credit card information after the sale is completed.

 Impersonal Customer Service

An e-commerce site will always have an impersonal quality to it, because a real person is not
able to provide a free sample or greet your customer walking through your online door. Many
sites have addressed this challenge by offering the ability to chat online with a sales
representative — video chats add yet another visual touch with an extra element of personal
service. Another promising approach is to provide a phone number to facilitate a personalized
conversation.

 Legal Guidelines Vary

With online selling, you will periodically be confronted by the need to decide where your
products can be purchased and shipped to because of varying legal requirements. Each state can
have a different approach to collecting sales tax, and shipping costs can also vary based on
location. Because regulations and laws can vary so widely from one state to another, one of your
best strategies for dealing with this potential disadvantage is to have a detailed discussion with
a lawyer knowledgeable in the subject.

 Duplicate Content and Copying

If you develop a successful online store, the easy and anonymous access to online sites means
that there is always the potential for unscrupulous parties to steal your ideas and content.
Copyright and patent laws are one legal recourse. Depending on how exposed your business is
to this potential disadvantage, extra vigilance might be necessary.

 Absence of Key Buying Senses

The inability of your customers to touch and smell your product can inhibit some purchases. For
example, some customers want to be able to try on clothes to be sure of a proper fit. One
strategy for minimizing this disadvantage is to offer a generous return policy. Another approach
is to provide an abundance of information — weight, length, height and other relevant data. For
example, some online clothing retailers provide detailed data about size variations and
adjustments based on customer waist and shoulder measurements.

 Technical Issues Such as Downtime

Internet website outages are the equivalent of losing power in a traditional physical store.
Establishing and operating an e-commerce site involves specialized technical skills, but many of
these tasks are similar to maintaining inventory records and processing sales in a brick-and-
mortar environment. Nevertheless, you should anticipate the need for some technical expertise
to overcome this potential problem area. As online security risks evolve, you will need to adjust
quickly if you want to maintain a positive online business reputation.