Things About Advantage and Disadvantage of E-Commerce Your Teachers Wont Tell You

What are the advantage and disadvantage of e-commerce?

I have noted that there are both advantages and disadvantages of e-commerce. Around 1994, Internet became a well-known public phenomenon. The first publications on the economic potential of the Internet were established by the White House in 1994 by its own website (whitehouse.gov). This was enlisted on the search engines of Yahoo and Lycos. Netscape became the first Web browser. With this, the first company to offer their products online was Pizza Hut pizza. Following this, Monster.com offered online jobs, and First Virtual was the first online bank payments system. A year later, in 1995, Amazon.com and eBay were founded. Free browsers, the development of secure Internet protocols (like HTTPS) and the emergence of good search engines like Google hastened the emergence of e-commerce.

Electronic commerce has many implications for the parties involved that include both advantage and disadvantage of e-commerce. Listed below are a number of lists.

• The marketplace is enlarged, often globalized. For companies, this means a larger market. It offers space for companies to specialize in a particular niche market and thus still maintain position through an acceptable outlet.

• The information cost can be reduced in size, because a lot of information can be easy stored.

• The communication costs are reduced and faster communication through digital media is possible. This effect was only more magnified when the Internet became more and more suited to electronic commerce and the higher value-added networks disappeared.

• Inventory and overhead costs can be reduced. The faster communication makes the implementation of just-in-time systems possible.

• As a result of the globalization of markets and low information and communication, it is possible to provide cost-effective options.

• E-commerce gives space for special customer requirements. So sports shoe manufacturer Nike created a website where customers could design their own shoes. These were then produced and delivered within a reasonable time at the customer's home.

• The relationship between investing in new products and revenue from these products is more measurable. This is also called return on investment (ROI). The time within which investments generate income is also shorter.

• Digital applications quickly provide new trading partners, for example, by comparing prices of numerous product The providers on a particular market is transparent and clear, and customers can have a more competitive act.

• Products are delivered faster, with communication being faster, and because a number of new products can be delivered.

• The customer can quickly retrieve additional information about certain products.

• The customer can independently consume products.

• Disadvantaged areas, for example by logistical constraints, are still partly accessible via electronic commerce. Thus, now you know both advantage and disadvantage of e-commerce.

Commercial companies can be successful because of their product and the market in which they operate. Also, a good organizational structure and management are important, Proper financial management, personnel management, distribution, marketing and name are also important. E-commerce companies apply on top of a number of specific circumstances that can also be for their success. Determine we assume a company that operates through a website, it is important that detailed information on the products and services of the company are visible on the website.