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E-commerce – Advantages And Disadvantages

Making online purchases, conducting various important transactions via the Internet is a favorite and common occupation for many progressive people. Let’s find out what eCommerce is and whether there are risks in eCommerce.

What is eCommerce

According to the dictionaries, the eCommerce is a sphere of the economy that includes financial and trade transactions, the implementation of which takes place through computer networks.


This kind of commerce refers to electronic:

– information exchanges;

– movement of capital;

– types of trade;

– money;

– marketing;

– banking;

– insurance services.

What is eCommerce on the Internet

Under the term e-commerce on the Internet, you can understand not only building a business, creating online stores, but also various calculations, purchases, and earnings. For many modern people, this kind of commerce has become a habitual matter, without which it is difficult to imagine life. However, a number of people still doubt and do not trust the Internet and everything connected with it.

Advantages and disadvantages of e-commerce

This type of commerce has both advantages and disadvantages.

-Ecommerce for many modern businessmen has become an integral part of life. This is not surprising because the benefits of eCommerce are obvious.

Possibilities of geographical coverage. Having opened a store in the city, the entrepreneur will have much fewer customers than in the online store.

-Efficiency and convenience of purchases through the Internet. For many progressive people, online shopping has become something ordinary. Both adults and children like ordering things without leaving the house.

-Saves up your business online. The opening of an online store will require less financial investment, rather than opening a regular store in your city.

-The ability to reach the global market. The needs of not only the national but also the international market are presented here. Prospects for e-commerce are huge, as business is not limited to geographic boundaries. With the help of this commerce, even small businesses are able to access the world market.

– A unique opportunity for the customer to choose not very expensive and at the same time good quality products.

-There is such an opportunity for consumers to easily research the product of interest, learn about the manufacturer.

-Shopping online is always very fast and convenient. In addition, there is the opportunity to read the reviews of those who have already purchased the goods or used the service.

– For companies and firms, this type of commerce reduces the costs associated with marketing, customer service, storage and processing of information, and contributes to better customer service. There is also an opportunity to process and collect information about the behavior of buyers.

This type of commerce has its drawbacks too. The disadvantages of e-commerce are as follows:

– Distrust of buyers. Although for many online purchases have become commonplace, there are still those who do not trust the sellers on the Internet and prefer to buy in off-line stores and supermarkets. This is especially true for older people.

-Not all people use the Internet to conduct financial transactions due to lack of knowledge or mistrust as mentioned above. So, some are afraid to disclose personal information.

– Not for all business areas suitable – trading goods that expire and get spoiled quickly. For example, people prefer to buy food in traditional ways, rather than using eCommerce. So, e-commerce is not suitable for those entrepreneurs who trade in food.

Types of e-commerce

There are such types of e-commerce:

– E-commerce B2B – business-to-business – one of the most promising and rapidly developing areas. The principle is to trade one enterprise with another.

– B2C scheme – business to consumer. Here the company can trade directly with customers: retail sales of goods.

– Scheme C2C – consumer-to-consumer. Provision is made for transactions between consumers, where neither of them is an entrepreneur. Often, commerce takes place on the sites of various online auctions, which are becoming more popular every day.

Payment systems of electronic commerce

There are such systems of electronic commerce as:

– Cash payments – traditional retail trade, payment on receipt of goods ordered in the online store.

– Bank transfers – settlements between legal entities.

– Transfers by means of a plastic card – are applied in a trading network, in Internet commerce.

– Transfers with the help of smart cards – are used in Internet commerce and trading network.

– Electronic money – payment on the Internet, in the retail network or using a pocket computer.

E-commerce – how to make money

In today’s world, e-commerce is often seen as a form of doing business. Here are several ways to earn money online:

– Opening an online store.

– Trading on the stock exchange.

– Trading on FOREX.

– Online surveys.

– Maintaining your own blog.

– Sale of an information product (video recordings, e-books, images).

E-commerce – some interesting facts

There are many interesting facts related to such activities as e-business and eCommerce. Here are a few:

– Online purchases are often made by Americans – more than 80%.

– Americans buy clothes and accessories more compared to other goods.

– Free delivery of goods in 96% of the cases encourages a person to make a purchase.

– 20-30% of the goods people add to the basket stays in the basket.

– The fastest growing market of commerce is in India.

– 46% of users get acquainted with the reviews before buying the goods.

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