The Definition of E-Commerce
E-commerce refers to the electronic purchase or sale of goods and services over the internet. It simply refers to conducting business over the internet. Because it is conducted electronically, e-commerce is also known as internet commerce, electronic commerce, or electronic business. All product purchases and sales are done online through the internet. There is no physical market in it for conducting business activities. Let’s know about advantages and disadvantages of e-commerce below.
- Faster Purchasing Process: E-commerce has accelerated the entire purchasing process for customers. They do not need to go to physical stores to shop because they can do so while sitting at home. It saves a lot of time and allows for faster transactions.
- It eliminates operating costs: It has reduced businesses’ overall operating costs. E-commerce has eliminated the need for businesses to open physical stores. Rent, utilities, various bills, and employee salaries are all significant expenses when running a store. It doesn’t have to pay for any of these things because it does all of its business through an online website.
- Personalized Shopping Experience: E-commerce allows customers to have a more personalised shopping experience. Customers can search for a wide range of products based on their preferences and needs. Customers are shown products based on their interests and location when they shop online.
- Available 24 hours a day, seven days a week: Online shopping is available at all times, 24 hours a day, seven days a week. Customers can access online products at any time, which is one of the major benefits of e-commerce. Unlike physical stores, there is no set opening and closing time.
- Connects far and wide: Because there are no geographical boundaries, online businesses can reach and connect with customers in far-flung locations. People can place orders from anywhere and have them delivered to their desired location.
- Detailed Product Information: Customers can obtain a detailed description of the products online. It gives a lot of information so that customers can easily compare it to other products and choose the best one for them.
- Customers can be retargeted: Online shopping has made it simple for businesses to retarget their customers. While customers shop online, electronic businesses collect a wealth of information about them. Personalized emails, messages, coupons, and discounts can be sent to customers on a regular basis to keep in touch with them.
Disadvantages to E-Commerce’s
- Lack of Personal Touch: When shopping online, customers do not have the option of touching and feeling the products. They may be more satisfied if they buy things at a store and inspect them thoroughly before they buy them.
- Customers cannot be assured of the quality of products available online because there is no product quality guarantee. Companies may defraud them and provide faulty products.
- Customers may misplace their vital credentials while shopping online, posing a security risk. There are a lot of hackers on the internet who could steal customer data and lose a lot of money for them.
- Another significant disadvantage of online shopping is that customers must wait for longer periods of time for their products to be delivered. Customers who shop offline receive on-the-spot delivery of their purchases.