Technical Advantages and Disadvantages of eCommerce System

ADVANTAGES OF E-COMMERCE

24\7 Business Guaranteed:

Many customers are too busy to go in a physical shop to buy something because of working hours. E-commerce store helps you to attract those customers who don`t have time to go in a shop. These customers can shop from you’re your website whenever they are free and you don’t need to keep an employee to ensure that all orders are being processed. You just need to automate the ordering process so that the customer can get confirmation email whenever they buy a product.

And unlike physical stores you don’t have a time frame for work so, your online store will be open all the time from which you can attract customers from any part of the world with correct marketing strategies.

International Selling:

The next advantage is that a new online business can promote its products worldwide easily. By using various tools you can discover your audience whether they are in U.S.A, U.K, or neighboring countries.

Selling the world wild is a major advantage it helps in building your name a lot faster and also increases your marketplace drastically, and profit will be seen way before your local competitors.

Fewer Employees Needed:

AS compared to retail shop you will need fewer employees and hiring them is affordable and you can also outsource work to Virtual assistants in places where cost of living is much lower, You don’t have to hire employees in the beginning you can run an e-commerce business on your own, Hiring is essential when your business starts to grow or when you have enough capital to hire employees.

Ease in Scaling the Business:

One of the advantages of e-commerce is that it is easy to scale the business. If you are drop shipping, you can easily increase the budget of your ad campaign without worrying much about keeping up with the demand.

In retail stores, due to limited space, it is not possible to increase products or cashiers. If you want to scale your business you will have to look for a bigger space or wait for the contract to end.

DISADVANTAGES OF E-COMMERCE

Loss of Physical Touch Pre-purchase:

Customers can`t try the products that they want to buy, this has been the issue which had stopped e-commerce from achieving greater heights but this will not be for a longer period with augmented reality many online stores, especially of clothing, are providing this feature to their customers from which they can try the products on. Many companies are now offering augmented reality services to businesses which helps the business to have a more interactive experience with the customers.

Shipping Activities:

One of the biggest e-commerce disadvantage according to customers is shipping times. Customers when purchase from inline receives the order within a week or more this is not the case in retail stores as the customer can take the product with them after purchasing it. Only solution for this is to be transparent with your customer. Let them know when they can expect the order at the time they place it.

Physical Stores vs E-commerce:

No doubt e-commerce is growing but physical retail still holds the majority of market share. Though having an online business is very essential nowadays, but still most of the money is made by physical stores. That’s why Amazon is also creating physical stores. But the money e-commerce is making is not a small one. And this number keeps growing.

Source: https://arenasoftwares.com/blog/advantages-and-disadvantages-of-e-commerce/