Advantages and disadvantages of electronic commerce
The e-commerce consists of the distribution, sale, purchase, marketing and supply of information of products or services through Internet.
Originally the term applied to the conduct of transactions by electronic means, such as electronic data interchange. However, with the advent of the Internet in the mid-1990s, the concept of selling services through the network began, using as electronic payment methods such as credit cards. Since then, companies have been preoccupied with staying at the forefront and being able to offer what their customers are demanding today.
On the other hand, people have seen in this new way of doing business a great opportunity to undertake and have a commercial activity of their own in which they succeed when they understand that in e-commerce there are no barriers or borders, and that geographical space is not The one that determines the target; That many aspects must be taken into account and the other side of the coin must be seen; That without creativity and without offering a truly differentiated value proposition, it becomes complicated to emerge in this broad world as great winners.
I’ve been talking to you about the repercussions of e-commerce in the markets and also on the impact it has on business, and I want to tell you about the advantages and Disadvantages of this online platform.
We can attribute the success of electronic commerce and its significant growth to different factors, among many others to these three:
The evolution of the society itself to everything related to the digital world that drives the new consumer of the 21st century. This supposes a demand for online consumption of goods or services to the detriment of habitual consumption.
The best capacity companies have to adapt their products or services to this demand. The relationship established between the manufacturer or distributor and the final consumer is more fluid and allows the variation or adaptation of the products as required by consumers.
The massive incorporation of logistic companies with tariffs and services adapted to electronic commerce. It seems that they finally understand the business opportunity that eCommerce supposes for them, and have understood that they must render their services in a different way. Logistics is probably one of the challenges of e-commerce, and the quality of service that some of these companies have achieved helps their growth and enhances the shopping experience.
Why do e-commerce?
- Some entrepreneurs adhere to their channel of diffusion and distribution the use of the Web. Some do so because of the demand imposed on them by the environment, others simply by adapting to the new changes. However, what are the reasons for using e-commerce? Here are a few:
- Creation of new sales channels.
- Interactive, fast and entertaining access to product or service information.
- Exchange of documents between partners from different countries.
- The database is shared to agree on transactions and other operations.
- Elaboration of orders from a distance.
- Saving time and immediate exchange of information.
- Increased competitiveness in world markets.
- Expansion of demand, and marketing processes.
- Reduction of capital needed to enter the market.
Having write that, we will focus on its six main advantages:
It allows establishing a new channel of communication and getting the “interaction” between distribution or sales companies and manufacturers or producers. Very often it is a communication between small and large, the so-called B2B (business to business); In the same way, B2C (business to consumer) is responsible for reaching the final consumers and this enables the “diffusion” of the digital content of the products and services with the opportunity to obtain more leads (very important, since they can Help us get more customers). But remember that eCommerce is not big or small, it is fast or slow.
It offers the possibility of creating totally digital companies, that is to say, virtual, and it is not essential to have a physical space, but it is advisable, for the storage and the deliveries of products. In the same way you can adapt and transform an offline company to a digital, if you prepare the cross channel strategies correctly, as we tell in this post. But remember that in eCommerce it is important to have the proper training before you start.
It improves the positioning of the company, but for that we must cultivate the brand and work it daily to obtain, with constancy and patience, a digital identity or online reputation that will help us in the form of “advertising” to reach the consumer / customer, to finish creating interactions, measuring them and acting. But remember that in e-commerce – as in life itself – is not worth copying and the most important is to measure to be able to improve.
It helps the replacement of traditional physical goods by digital products, with a significant reduction in production costs, logistics and internal structures directly linked to the storage, shipping and production of the product. But remember that eCommerce grows thanks to the digital revolution of the 21st century led by consumers / customers and needs constant adaptation.
It significantly increases the technification of companies, forcing the incorporation of updated technological tools, either software or hardware, and modifying the internal processes of these with digital strategies. It requires a transformation and technological adaptation at company level and at a personal level. Remember that in eCommerce the tools are important, but they are even more the people that make them work.
It favors and modifies the relationship established between the manufacturer, the distributor and the consumers, impelling a flow of information among all, which allows the reorientation of the product, even in the manufacture, production and processes involved in the transaction, improving So the quality of service. But remember that in eCommerce the word crowdsourcing comes from crowd and sourcing.
But where there are advantages, there are always some “possible” drawbacks, and I say possible because surely these three disadvantages of eCommerce have a solution:
It transmits insecurity in the transactions. The presence of electronic fraud does not help the smooth running of such platforms. One of the most frequent is massive phishing, also known as spoofing, often through messages that pretend to be sent by banks or financial companies in order to supplant the user’s identity. To minimize this problem, there are online payment gateways very secure and homologated by the protocols of Secure Electronic Commerce (CES).
It transmits from the outset distrust, by not having direct contact with the physical product that we desire. Balancing that mistrust generated by distance with the confidence that you generate as a person or as a professional will be the only way to avoid “abandonment.” As I mentioned before, eCommerce is a people business, we do not sell products, and we sell benefits, the benefits that it brings to our client to buy from us.
It does not help in the communication to be able to process complaints or returns. The distance between the customer and the seller is often an inconvenience to be able to place the order, even more if you have to process returns or complaints. To streamline these procedures, it is important to establish an optimal strategy of communication with customers through social networks, which helps communication and interaction, good customer service through social networks is a must. The resolution of incidents in a public way generates trust among users.
Surely we can add some advantage or disadvantage more, these are the conclusions of my experience of years in the exciting world of eCommerce. And you do you think?http://infohgrafik.com/advantages-disadvantages-electronic-commerce/http://infohgrafik.com/wp-content/uploads/2016/11/E-Commerce-1.pnghttp://infohgrafik.com/wp-content/uploads/2016/11/E-Commerce-1-150x150.pngEcommerce InfographicsThe e-commerce consists of the distribution, sale, purchase, marketing and supply of information of products or services through Internet. Originally the term applied to the conduct of transactions by electronic means, such as electronic data interchange. However, with the advent of the Internet in the mid-1990s, the concept of selling...infohgrafikinfohgrafik.com email@example.comAdministratorI am not an Infographics Designer nor a graphic designer but love art, design & photography. Mostly work as a self-employed web designer & little bit expert in SEO, my hands seem to have become always attached to my keyboard. You will see, there are some opinionated articles here and they do not necessarily reflect the entire stand and opinion of the site. This site is made up of pool of hardworking editors with individual differences. But despite of the individual differences, they are dedicated to achieve one specific goal: To help other by giving best service.infohgrafik