E-Commerce
E-commerce (e-commerce) is the buying and selling of goods and services, or the transmission of funds or data, through an electronic network, mainly the Internet. These business transactions take place either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C) or consumer-to-business C2B). The terms e-commerce and e-business are often used interchangeably. E-commerce is powered by the internet, where customers can access an online store to browse and place orders for products or services through their own devices (Chai, Holak, Cole, 2020).
Advantages of E-Commerce
- E-commerce offers global coverage to sellers. They remove the barrier of place (geography). Now sellers and buyers can meet in the virtual world without the obstacles of the location.
- E-commerce substantially reduces the cost of the transaction. Eliminates many fixed maintenance costs of brick and mortar stores. This allows companies to enjoy a much higher profit margin.
- Provides fast delivery of goods with very little effort from the customer. Customer complaints are also resolved quickly. It also saves time, energy and effort for both consumers and the company.
Disadvantages of E-Commerce
The start-up costs of the e-commerce portal are very high. Hardware and software setup, employee training costs and constant maintenance are all quite expensive.
Although it may seem safe, the e-commerce industry is at high risk of failure.
Sometimes e-commerce can seem impersonal. Therefore, it lacks the warmth of an interpersonal relationship, which is important for many brands and products. This lack of personal touch can be a disadvantage for many types of services and products, such as interior design or the jewellery business.
Security is another area of concern. Only recently have we witnessed many security breaches in which customer information has been stolen. Credit card theft, identity theft, etc. Major customer concerns remain (Toppr, s.n.).
