Advantages & Disadvantages of e-commerce



  • Ø Distance do not matter in carrying out trade ,you can reach the world you want ,contact with supplier via mail is cheaper & effective


  • Ø Unlike a brick & mortar store ,an online store works 24 hrs a day & 7 days a week 365 days a year around a clock.


  • Ø Compared with retail outlet or new office ,the cost of setting up of e -commerce website is very low, can be integrated to your infrastructure with very little overhead


  • Ø More flexibility in a web site to add & remove product than in catalogues & brochures


  • Ø Reduces error & increases efficiencies through the automation of the business processes


  • Ø Wider choice & no wastage of time ,customer can find product from all over the world.


  • Ø Buying/selling of items from any place can be done if internet connection is available.


  • Ø Can avail of services such as financial services ,legal services ,medical advice etc from appropriate portals


  • Ø Large verity of goods accessible easily without spending time & money or by physical visits


  • Ø Availability of anonymous friendly advice on item one may like to buy




}  Inability to touch & feel products ,since the selling is online


}  Major drawback  of online shopping is that people don’t socialize much


}  Online stores do not exist for very long. Many companies do not know exactly how to set up a store, resulting in a large group of annoyed & dissatisfied customer , who want to buy something ,not clear how they should & there is no one to guide like a shopkeeper


}  Computer system will never be 100% safe. Hackers intercepts transactions & cause problem for consumers as well as company as operations are via internet


}  The average internet user is usually a young highly educated man. If business is started on net , women & elderly persons will not be reached


}  From the Indian context ,internet access is not that widely available at present


}  Customers are worry of giving their credit card no.s to vendors who have only “Web Presence”


}  EDI (Electronic Data Interchange ) standards have to be in place before B2B . Small business may find it difficult to confirm to these standards


}  E-commerce will de-personalize transaction as many people go shopping for social contacts


}  One of the major problem is security of transaction on net


}  Shopping portals are more vulnerable to attacks by hackers unless special precautions are taken


}  Portals have to be protected from virus attack & other electronics should provide special security







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