Advantages and Disadvantages of E-commerce

(Ukengage.com)

Advantages

1. Lower prices

The lower costs of running an e-commerce store versus a physical store translate to cost savings for the consumer. This is one of the biggest e-commerce advantages. Online prices are typically lower than traditional store prices, and e-commerce sites are able to offer more discounts and promotions that are easier to claim. 

2. 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.

3. Wide product variety

In the global marketplace that is the internet, consumers can buy electronics from China, books from England, clothes from Paris, and good old US products all from the comfort of home. The width and depth of products sold online are unbeatable.

4. More informed decision-making

When shopping online, information is immediately at your fingertips, including:

Reviews from actual consumers are often the most persuasive.

• merchandise descriptions
• Utilize videos
• product manuals
• social acceptance

One of the greatest advantages of e-commerce for customers is the ease with which they can compare items, brands, and websites, sometimes even side by side. With the express aim of enabling customers to compare items side by side based on price and discount characteristics, several comparison shopping websites exist.

5. 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.

Disadvantages

1. Lack of personal touch

Some consumers value the personal touch they get from visiting a physical store and interacting with sales associates. Such personal touch is particularly important for businesses selling high-end products as customers not only want to buy the merchandise but also have a great experience during the process.

2. Lack of tactile experience

No matter how well a video is made, consumers still can't touch and feel a product. Not to mention, it's not an easy feat to deliver a brand experience, which could often include the sense of touch, smell, taste, and sound, through the two-dimensionality of a screen.

3. Price and product comparison

With online shopping, consumers can compare many products and find the lowest price. This forces many merchants to compete on price and reduce their profit margin.

4. Need for internet access

This is pretty obvious, but don't forget that your customers do need Internet access before they can purchase from you! Since many eCommerce platforms have features and functionalities that require high-speed Internet access for an optimal customer experience, there's a chance you're excluding visitors who have slow connections.

5. Credit card fraud

Credit card fraud is a real and growing problem for online businesses. It can lead to chargebacks that result in the loss of revenue, penalties, and a bad reputation. Some businesses are at higher risk than others for credit card fraud or failure which can impact whether or not e-commerce is right for your business.

Reference list

Pillemer, N. (2021) 10 advantages of e-commerce for consumers & businesses, Become. Available at: https://www.become.co/blog/ecommerce-advantages-consumers-businesses/ (Accessed: January 26, 2023).

Wong, L. (2022) Commerce Advantages and disadvantages: Apruve, E. Available at: https://blog.apruve.com/e-commerce-advantages-and-disadvantages (Accessed: January 26, 2023).