E-commerce

E-commerce

1. Advantages of e-commerce to customers

   • Ability to order goods 24/7
   • Cost savings are passed to customers with cheaper goods
   • Greater choice of goods from a global marketplace
   • No travelling needed as goods are ordered from home
   • Allows disabled people to do their own shopping

2. Disadvantages of e-commerce on customers

   • Problems with fraudulent sites
   • Sometimes more hassle when returning goods
   • Customers worried about security of credit/debit card details
   • Hidden costs of postage or duties e.g. VAT
   • Loss of the social pleasure of shopping
   • Harder to access the quality of gods before ordering

3. Advantages of e-commerce to a business

   • online catalogues are more easily updated
   • Fewer staff needed
   • Low start up and running costs compared to traditional stores
   • Fluid pricing - easy to change prices from day to day
   • Ability to reach customers at any time of the day
   • Global market means customers from around the world

4. Disadvantages of e-commerce to businesses

   • Network downtime can be very expensive
   • Increased competition from abroad offering cheaper goods
   • Cost of delivery may make goods more expensive
   • Reliance on third party delivery companies who may be unreliable