Advantages and Disadvantages of an E-commerce website (Blog#04)
Advantages of E-commerce:
1) A Larger Market:
E-commerce enables consumer to explore all across the country and overseas worldwide for their desired product. Customers are able to make any purchase anywhere, anyplace and at anytime
2) Customer Insights:
E-commerce helps businesses to track the traffic and consumer's entire entire user journey for getting insights into the keywords, marketing message, user experience, pricing strategy, and much more. All this is achievable through PPC, SEO, ads, etc.
3) Supply and Demand to Customer Trends:
4) Lower Cost:
Setting up an e-commerce business in today's world is way more cheaper than setting up a physical location. Businesses can actually be started without the budget going skyrocket.
5) More Opportunity for Selling:
6) Personalized Messaging:
E-commerce platforms give people in business the opportunity to provide personalized content and product recommendations for registering customers. These targeted communications can help increase in conversion by showing the most relevant content to the visitor.
7) Increased Sales and Instant Gratification:
For businesses selling digital goods, e-commerce enables them to deliver their product to the customer instantly. This kind of act satisfies the customer with instant gratification and helps increase in sales.
8) Ability to Scale Up and Down:
Businesses can dialup their plans at any given minute, They do not have to wait for a certain time to increase their Shelf space. This is only possible through e-commerce.
Disadvantages of E-commerce:
1) Lack of Personal touch
A specific group of customer appreciate the personal touch of getting to interact with the customer service face to face before buying the product. If they want to buy a really expensive product then they prefer the buying process to be enjoyable.
2) Lack of Tactile Experience:
No matter how good the online portfolio of a certain product is made, some customers feel the need to have the experience of having the product in their hands before they make purchase decision.
3) Product and Price comparison:
4) Need to Access Internet:
Customers need internet connection to explore the e-commerce businesses. And to have the optimum experience on these high end websites, one need to have a high speed internet connection.
5) Credit Card Frauds:
Credit card frauds are a natural and growing problem for the online business community. It can lead to many chargebacks, which result in the loss of penalties, revenue and bad reputation.
6) IT Security Issues:
Many companies have lost precious data and revenue due to these malicious hackers. Stealing information from customers databases lead to financial and legal implications, also resulting in company's bad repute.
7) All Eggs in one basket:
8) Complexity in Regulations, Taxation and Compliance:
As a global business it is understood that consumers are from all over the world, having different rules and regulations in different countries. Keeping up with all the regulations while operating efficiently can be quite tricky.
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