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State three advantages and two disadvantages of e-commerce.

      

State three advantages and two disadvantages of e-commerce. (5 marks)

  

Answers


Alice
Advantages
-Transactions are fast because they are done electronically.
-The buyer doesn't have to go to the seller but receives goods online.
-Money is sent online and not over the counter, hence minimizing theft.

Disadvantages
1.Ecommerce Lacks That Personal Touch:
Not that all physical retailers have a personal approach, but we do know of several retailers who value human relationship. As a result, shopping at those retail outlets is reassuring and refreshing. Clicking on “Buy Now”, and piling up products in virtual shopping carts.
2.System and data integrity:
A computer virus is a program that clones itself when an injected piece of program code is executed. It is malicious program. Data protection from the viruses that causes unnecessary delays and can clean up all stored information must. In order to create cost effective response to the varied technical and human threats to web site security.
3.E-Commerce Delays Goods:
Ecommerce websites deliver to take a lot longer to get the goods into consumer hands. Even with express shipping the earliest consumer get goods in next day. An exception to this rule is in the case of digital goods an e-book or a music file. In this case, ecommerce might actually be faster than purchasing goods from a physical store.
4.System scalability:
It means regular upgrade of the website is required when the number of website users increase over period of time or during busy seasons. As a result of rush of enquiries on the companies site, it might cause slow down of the system performance and eventually loss of customers.

4. Dependent on internet:
E-Commerce is dependent on internet. Mechanical failures in the system can cause unpredictable effects on the total processes.
Furthermore, there are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways; all are always prone to attack. Things such as viruses could mean losing the site or affecting the customer’s computers while on purchasing from the website.

5.Many Goods Cannot Be Purchased Online:
Despite its many conveniences, there are goods that consumer cannot buy online. Most of these would be in the categories of “perishable” or “odd-sized”. It could order both of them online, but consider the inconvenience. The Popsicle would have to be transported in refrigerated trucks. Unless the seller was willing to make a huge loss, the cost of shipping that Popsicle would far exceed the cost of the Popsicle. Products people won’t buy online:
There are various products which the customers would like to first touch and feel and then buy it. For example: Furniture users want to touch ant they want to sit on it, feel the texture of the fabric.

6.Ecommerce Does Not Allow Experiencing the Product before Purchase:
It cannot touch the fabric of the garment when consumers wants to buy and it check how the shoe feels on our feet, consumer cannot “test” the perfume that consumer want to buy. In many cases, customers want to experience the product before purchase. Ecommerce does not allow that. If they buy a music system, they cannot play it online to check if it sounds right? If they are purchasing a home-theatre system, they would much rather sit in the “experience centre” that several retails store set up.

7.Loyal customers:
Great amount of effort is put on building a customer relationship by the organizations and retaining them is rather a bigger job. A business cannot survive without a loyal customer.
8.Shopping is Social Experience:
People love to shop in the mall because it gives them an opportunity to have fun with friends and family. It’s something online stores lack of.
Anyone one can set up an Ecommerce Website: Where online storefront providers bring the ability to set up an ecommerce store within minutes. The lowered barriers to entry might be a great attraction to the aspiring ecommerce entrepreneur. But for the buyer, reliability can be an issue. This could lead customers to restrict their online purchases to famous ecommerce websites.
9.Too Many Competitors:
If there are thousands of online stores selling similar products, how company can attract visitors, so that they can actually but from it and not from others? As the technology has boomed the competition is increasing because more and more people are opening their businesses on internet
10. Security:
When making an online purchase consumer have to provide at least credit card information and mailing address. In many cases ecommerce websites are able to harvest other information about our online behavior and preferences. This could lead to credit card fraud, or worse, identity theft.

Alambi answered the question on July 22, 2018 at 14:16


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