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Advantages and Disadvantages of Electronic Commerce

Electronic Commerce or E-commerce is all about selling and purchasing the product and services supported by electronic payment system. The system was introduces in 1970 with electronic data interchange. E-commerce refers to a commercial transactions that involves the transfer of information over the internet. With the rapid growth in online shopping websites like: Amazon and EBay were introduced. It has made the market place for businesses and consumer to make trade and transaction across the world. As like all business, electronic business is also have some benefits and drawbacks. Let’s go through the advantages and disadvantages of E-commerce.



  1. Using E-commerce site will reduce the cost associated with customer’s base, customer’s satisfaction and higher sales it produces.
  2. The overheads associated with running a retail store will reduced because the transaction is done through a website and not through a pointing store, also the cost of lighting, renting, staffing and restocking a store will completely eliminates.
  3. It enables the business to reach in global markets with national and international demands. And your business activity is no longer associated with any geographical restrictions.
  4. With ecommerce even small business can access the global markets for selling and buying of goods and services.
  5. The transaction is carried out 24 hours a day and on holidays and weekends, thus leads to increase in profit and sales.
  6. It has also benefited the customers for cheaper product at fine quality. Sometimes a customers can find original manufactures to purchase the product at low rates than that of wholesale or retailers.

For Consumers, the greatest advantages lie in its convenience, selection, customization, price comparison, and potential cost savings. Shopping can be done at any time by the use of website, so there no need to go home from work to buy an item before the shop is closed. Individuals can compare prices to find the lowermost and often the item can be delivered to their front door.