BENEFITS / ADVANTAGES OF E-COMMERCE :-

1. Low costs - A significant advantage of ecommerce is that launching an online store is much less costly than opening a
physical store. You are not required to furnish your outlet, nor are you required to pay rent or hire multiple workers.
Marketing and advertising campaigns are also inexpensive. Additionally, the online portal is computerised and
automated, which saves significant money. One of the primary benefits of ecommerce is the absence of a middleman,
which results in a substantial cost reduction. The platform is able to build an efficient supply chain since it establishes a
direct connection between buyer and seller.

2. Speed & Flexibility - A person or business can easily open an ecommerce store in a matter of days. In contrast, a
physical store requires space, commercial leasing, and sufficient construction and decoration time before opening. In an
e-commerce platform, displays and product ranges can be changed instantly, while in a physical store, this requires
careful preparation, adequate time and manpower. In terms of versatility and speed, e-commerce sites far outperform
retail outlets, which is regarded as a key feature of ecommerce.

3. Faster Buying Process - Previously, a customer had to schedule his shopping trip in advance, even though he desired to
purchase a single item. This will include rearranging his schedule and making the purchase at the store. Another vital
advantage of ecommerce is that it expedites the purchasing process. Additionally, online stores are open 24 hours a day,
seven days a week, allowing you to shop at your leisure. By providing many options, ecommerce enables the consumer to
purchase a specific product without wasting time conveniently. Additionally, you save travel time by having the product
shipped to the destination of your choosing.

4. Product Catalogue - Customers are looking for a detailed overview of the items they wish to purchase, which is a
critical aspect of ecommerce. An e-commerce platform provides its customers with a product catalogue that includes data
sheets that detail all of the company’s products and services. With expertise at their fingertips, customers can more easily
purchase the products they want. Additionally, online websites provide reviews and consumer feedback that inform
consumers about a product’s marketability. The portal provides warranty information and other product-related terms
and conditions that may prove helpful to a customer.

5. Wider Customer Base - A physical store is based in a specific location, and in most instances, residents in the nearby
area can only come to shop. Another advantage of e-commerce stores is that they are not geographically limited.
Geographical boundaries become irrelevant when conducting business online via ecommerce stores. A customer can
access the portal from any location globally through an internet connection and a computer capable of operating it.
Ecommerce shop is open 24 hours a day, seven days a week, for all of its customers globally. It gives real-time updates on
where the goods will be delivered and for how many days.

6. Customer Data Insights - Another benefit of online selling that you might not have considered is the ease with which
consumer data can be collected, analysed, and acted upon. If you want to maintain a laser-like emphasis on the customer
experience, you must own the consumer data. By monitoring consumer experiences, online selling enables you to collect
first-hand data. You’ll benefit from a continuous feedback loop of actionable insights that will allow you to reinvent the
customer experience continuously.

7. Scalability - When a physical store experiences a spike of customers, it becomes extremely difficult to manage them
due to insufficient staff. Scaling up or expanding a physical store needs additional floor space and resources, each with a
cost. In comparison, growing an online store is extremely easy, which is one of the less apparent advantages of e-
commerce for businesses.

8. Reviews & Ratings - Customers are encouraged to leave feedback on online stores in order to learn about customer
satisfaction and any issues they are having when using the products and services. The availability of these reviews on
ecommerce stores allows potential buyers to learn more about the product and determine if it is appropriate for their
specific needs. It also aids sellers in improving their services and products to increase sales and customer satisfaction.
9. Increased Profit Margin - As opposed to traditional stores, the cost of setting up and operating an ecommerce store is
very low. You’ll also save money on marketing, labour, and overhead. Most ecommerce stores provide the dashboard
with an added benefit for reports and invoices, helping the business manage their finance. When running an online store,
inventory management costs are also reduced.

10. Targeted Marketing - When you sell online, you won’t have to pay to reach everybody, which is very costly. Your
marketing budget would be based on reaching out to the specific customers who are most likely to be interested in what
you’re selling and purchase your products. You can choose who sees your ads on online advertisement platforms based
on keywords, demographic details, geographic location, and even interests and hobbies.

DISADVANTAGES / LIMITATIONS OF E-COMMERCE :-

1. Potential security threats - When you’re doing business online, there’s always the potential for security threats. Poor
website security can allow unauthorized users to gain access to your website and look at sensitive data. In rare cases,
issues with payment processors may lead to data breaches that put customers’ credit and debit card information at risk. A
big part of learning how to build e-commerce websites is learning how to make sure that website is secure, which is why
some business owners prefer to hire a professional.

2. Competition - There’s a lot of competition in the world of e-commerce because it’s so easy for anybody to create an
online store. This is one of the biggest e-commerce disadvantages because it means you have to work extra hard to make
sure you’re promoting your store and driving traffic to your website. Certain niches are also very crowded, so you may
have a tough time selling your product depending on your industry and products. Ultimately, the success of your store is
determined by how hard you work to build your online presence.

3. IT issues - There are no tech issues that can keep you from accepting cash at a physical store, but IT issues can be a big
problem for e-commerce websites. If your website suddenly crashes or you’re having a problem with your payment
processor, that downtime could potentially cost you money and customers. What’s even worse is that fixing these IT
issues could cost you even more. Keeping it simple can help you avoid some of the potential IT issues that come with e-
commerce, but tech problems are something to be aware of.

4. Shipping logistics - Running a physical storefront is simple because all you have to do is sell products to customers
when they come in to shop. If you want to sell products over the phone or through a catalog, you can use a simple
shipping service to send out a few packages each week. With an e-commerce store, you have to figure out all of the
shipping logistics because every purchase will have to be shipped. It can be difficult to figure out a seamless shipping
solution for your business, and you don’t want to end up in the red due to high shipping costs.

5. Limited connection with customers - You don’t get a chance to connect with customers on a personal level when
you’re running an e-commerce store. Some people may prefer that, but you can’t offer the same personal touch when
you make a sale online.

TRADITIONAL COMMERCE vs E-COMMERCE

Traditional commerce refers to the practice of selling products and services within a single industry and in some cases,
within a specific geographical area. Traditional commerce relies on operating business hours during a specific period of
time and requires housing inventory or occupying a retail store.

E-commerce refers to the commercial transactions or exchange of information, buying or selling product/services
electronically with the help of internet which is a newer concept of business style and comes under e-business. Now a
days people are preferring this as it is less time taking and does not need physical way of doing business everything can
be done with laptop or smartphone and internet.