State the various advantages and disadvantages of E-commerce.

 The advantages of E-commerce are:

(i) Accelerated buying process for saving time: When buying online, a buyer does not have to travel and move around looking for a product. Online buying is a quick process completely different from buying from conventional stores.

The buyers avail the needed product at their own pace and with ease.

They can choose from a wide range of products by making available goods from other chained stores as well.

(ii) Personalised store as per consumer preference: E-commerce offers personalized experience to buyers.

The portal will have the consumer’s history of purchases and benefits and discounts she/he can avail due to their loyalty, order history and so on. It fulfills customer expectations.

(iii) Reduce recurring cost while hiring virtual support resources: An advantage for the e-commerce firm is that it can be present in multiple locations at a fraction of the cost of physical presence.

It can outsource the tasks to even different countries or employees.

(iv) Customers retargeting is easier: E-commerce firm can retarget a customer to retain a customer base. Some of the techniques used to retarget customers are:

• By sharing a coupon when customers checkout from the website.

• By sending e-mails pitching upsell and cross-sell.

• By redirecting the consumer to the desired web-page or targeted advertisement as per the consumer’s preferences. 

(v) Easier to encourage an impulse buy: It is easier for an e-commerce firm to trigger an impulse buying. An impulse buying is an unplanned decision by a consumer to buy a product or service, made just before a purchase.

Emotions, feelings and attitudes play a decisive role in purchasing, triggered by seeing the product or upon exposure to a well crafted promotional message.

(vi) Reviews Available: Reviewing help the consumer to make right decisions while buying a product.

It helps the consumer to voice their opinion about the products. Positive comments or a higher rating build trust of the consumer on the product as well as the business.

This projects the business as transparent and trust-worthy.

(vii) Detailed information available for the consumer: The availability of detailed information allows the consumer to gauge the relevance and value of the product or service. It helps the consumer to make a confident and right choice.

(viii) Quality service at reasonably low operation cost: E-Commerce reduces the cost of operations significantly as the business does not have to rely on a physical presence to provide quality service.

An e-commerce firm does not have to pay rent, maintenance of a physical shop and other expenses of operating a physical store in a market.

(ix) Quick and affordable marketing: E-commerce firms use various tools for attracting the customers and to be visible in the market.

They can use quality promotional content and marketing videos explaining the product and services.They can apply various online strategies to reach the customers.

(x) E-commerce has flexibility with 24/7 service capability: E-commerce allows the service to consumer 24/7. It provides a shopping option round the clock.

Consumers get chat support and recommendations at any time and place.

E-commerce has the following disadvantages:

(i) Lack of personal touch; A consumer cannot touch and feel a product, The detailed expressed and explained products even cannot convince and attract the consumer.

(ii) Unsure about the quality: It is difficult to determine the quality of a produet being sold online. There are malpractices. Even fake products are sold online. Fake reviews are also there. 

(iii) Late Delivery: Businesses do not give exact delivery dates. Sometimes consumer waits for the product for more than the assured period of time.

There are also other issues that arise when it comes to the delivery of the product.

(iv) Difficulty in purchasing some products: Buyers do not feel confident to buy some precious products like gold and made-to-order furniture because of measurement issues. Their inability to verify such products physically is the main obstruction.

(v) Site crash issues: The consumer experience of buying online also depends on the functioning of servers and the quality internet service.

On several occasions the sites get stuck and transactions fail. All these discourage buyers to purchase online.

(vi) Cybercrime and Data privacy issues: Buyers do not feel safe to provide personal information while purchasing online because of cyber crime and data privacy issues. Hackers can access personal data and misuse them.

Subcribe on Youtube - IGNOU SERVICE

For PDF copy of Solved Assignment

WhatsApp Us - 9113311883(Paid)