Advantages and disadvantages of e-commerce

 Advantages and disadvantages of e-commerce 

A CD, a pizza or a book? There is no unanimous agreement on which was the first product that was sold through electronic commerce. What is clear is that the first completely online transactions changed our way of consuming forever and this leads us to discover the advantages and disadvantages of e-commerce.
Although the beginnings of e-commerce date back only 25 years, the incessant advancement of technology has meant that this form of online buying and selling has changed enormously since its inception.
Internet access is another factor that has influenced the popularization of e-commerce throughout the world. Likewise, consumption habits have been mutating due to the evolution of society.
Therefore, each of these issues has done its bit to build a giant mountain that we now call e-commerce . But this is not the peak of this type of business, everything indicates that its growth is unstoppable.
Moreover, Statista statistics suggest that this year sales will reach 45 billion. This means having multiplied these figures by five in just six years. But, this does not guarantee that our online business will work, taking into account the advantages and disadvantages of e-commerce is essential before undertaking.
What is e-commerce and why has it succeeded?
When we talk about e-commerce or electronic commerce, we refer to a commercial transaction carried out entirely through the Internet . That is, to sell or buy goods or services using the network as a medium. Nowadays we also understand that an e-commerce is an online store where you can buy products online.
The success of this trading model lies in its availability . The hectic pace of life today prevents us on many occasions from going to a physical store. On the other hand, globalization has allowed us to connect with any part regardless of our location, this is key so that we can acquire products from all over the world. For example, you can buy some shoes that are only made in India and have them available in Mexico City.
So, with ecommerce we can buy or sell what we want when we want. In addition, with the agility of carrying out transactions from any device without having to wait.
Perhaps the triumph of electronic commerce lies in our own social habits . Now more than ever, time is our most valuable resource and e-commerce allows us not to waste it on travel, queues, etc.
However, the coronavirus crisis has been one more boost for companies to bet on this type of business. If we cannot go to the product, the product will come to us through the Internet.
Advantages and disadvantages of e-commerce
Although it may seem that online business is a bed of roses for the public and for the entrepreneur, it also has some disadvantages compared to traditional commerce. Mainly, the drawbacks of online stores are related to internet connection, security and shipping process.
drawbacks of electronic commerce

Website bugs

If the network connection has problems, the web page may crash. Therefore, if the store is inactive due to connection failures, it is as if it were closed and the customer will not be able to access it.

Security in the form of payment

Stores are increasingly implementing more secure systems to guarantee payment with credit cards or other methods. However, many people are still wary of entering their bank details online.

Shipping process

This point has two disadvantages: on the one hand, the time from when a product is ordered until it reaches the customer depends on many factors. Some customers may get impatient and give up the purchase if the times do not fit what they demand.
This problem is becoming more residual because most companies have highly optimized logistics processes. In this sense, you can learn much more about this matter with our Master in Logistics, 

Purchasing and Transport .

The second disadvantage of ecommerce is the cost of shipping . Sometimes, the acquisition of a product has an additional cost due to its transport. It is important that companies do not hide this information until the end of the process, since the customer may be disappointed and abandon the cart without completing the transaction.

more competitive market

There are hardly any barriers to access the ecommerce market, therefore the levels of competitiveness are very high. There may be thousands of stores with characteristics similar to those of our business. Therefore, to succeed, it is crucial to find a niche in the market and differentiate yourself from the rest of the competitors.
The customer cannot test the product before buying it.
True, on the Internet you can find reviews of almost anything. However, the consumer has to take a small risk buying before trying it.
This problem has been practically forgotten, since most companies have created their return policies so that if the customer is not satisfied with the purchase, they can return it without much difficulty.

benefits of electronic commerce

We have started by mentioning the negative points to end up leaving a good taste in the mouth with the advantages of online commerce. However, it is necessary for each business to carry out its own market analysis to know all the factors that can influence the direction of the company.

Business open 24/7, 365 days a year

The quintessential advantage of this form of trading is availability at any time. The customer can buy outside of traditional business hours. This is a great benefit for those people who have difficulties to reconcile their daily rhythm.

Accessibility from anywhere

It is only necessary to have an Internet connection to complete electronic transactions. This facilitates the purchase processes, since you can lie on the sofa while you do your weekly shopping with your Smartphone.
In addition, the business can be based in Spain and sell to the whole world. E-commerce allows globalized buying and selling without geographical limitations.

Cost savings for the entrepreneur

People who decide to undertake creating an online store can save certain investment costs. For example, they will not have to buy or rent a physical location or take care of supplies from it.
However, thinking that having an online store is almost free is a huge mistake. We must bear in mind that qualified professionals are needed to design and maintain the website . At the same time, someone has to take care of orders and customer service; without forgetting the marketing strategies.
This issue must be addressed as part of the virtues and disadvantages of e-commerce. That is, understanding that costs can be saved in certain essential aspects in physical stores. But at the same time, it must be invested in other issues such as marketing to obtain good results. 

data collection

Knowing your customers is essential to offer them an experience that suits their needs. On the Internet, collecting information is easier than in traditional commerce.
Consumers leave their trail wherever they go. If the company knows how to manage the data , it can improve its service and even customize marketing strategies.

Customer acquisition

In physical stores it is necessary for the customer to arrive at the place, feel attracted and enter. However, diverting your route can mean that you never meet a business.
In e-commerce, a good marketing and advertising strategy can capture the customer's attention without being invasive. Social networks, for example, can be used to interest a user in the business.
It is also easier to offer information about the products as well as other content that is an added value. All this results in attracting customers to our site.