E-COMERCE

Q 1 Advantage of E-COMMERCE

This can be classified in to Three Major Categories

A Advantage to the organization

E-commerce also can give a lot of benefits to business organizations especially in term of cost reduction and reaching global market

1 Reduces Costs for Inventory Management

With e-commerce, the suppliers can reduce costs to manage their inventory of goods because they can automate the inventory management using web-based management systems. This method indirectly can save their operational costs.

Specifically, e-commerce replaces the manual business processes with their automated electronic equivalents to accelerate ordering, delivery and payment procedures. This electronic paradigm has saved businesses billions in operational and inventory costs

2 Reaching Global Market suppliers to increase their sales meanwhile decrease the investment costs. E-commerce allows the suppliers to reach global market segment. In other words, it allows the“Organizations can reach global areas that would have been otherwise difficult.” Pallab (1996)

“It expands the marketplace from local and regional markets to national and international markets with minimal capital outlay, equipment, space, or staff.” Cross-Industry Working Team (1999)

3 Monitoring the Consumers’ Buying Habit and Interest

The suppliers can monitor the consumers’ buying habits and interests so that they can tailors their offer suit to consumers’ needs and keep the ongoing relationship with them.

4 Reduces Costs To Establish Store Front

The overhead costs to build the physical store front may be prevented to the suppliers who use e-commerce as their business operation.

5 Reduce Labor Costs

The labor costs can be reduced with e-commerce because the sellers can automate their online store fronts.

6 Reduce Advertising Costs

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E-COMERCE

E-commerce can reduce advertising costs because it is easier to update the advertisement using software technology.

B Advantage to the customer

1 Wider Range of Choices

With e-commerce, the consumers have a wider range of choices for the needed products from the variety of sellers

2 Products or Services Can Be Purchased from Remote Areas

E-commerce gives the remote consumer an option to shop somewhere else therefore driving prices down and quality of goods up in the local region

With e-commerce, a local company has no longer hold monopoly with pricing in a region even other competitors are remote from them, so that, the quality and price of goods will be the decisive factor for the company to success.

3 Give Greater Control to Consumer

4 Price Comparisons

E-commerce enables consumers to perform price comparison, so that they can make more appropriate purchasing decisions.

5 Save Time

6 Convenience

C Advantage to the society

They can easily buy products without moving physically.Society can buy products cheaply.They can also give suggestion what they want new in product.They can get ordered product anywhere because there is no geographical limitation.

2 Disadvantage of E-commerce

A Technical Disadvantage

Technical Disadvantages

There can be shortage of system security, dependability or standards owing to poor implementation of e-Commerce.

Software development industry is still changing and keeps changing rapidly.

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E-COMERCE

In many countries, network bandwidth might cause an issue as there is inadequate telecommunication bandwidth available.

Special types of web server or other software might be requisite by the vendor setting the e-commerce setting apart from network servers.

Sometimes, it becomes difficult to integrate E-Commerce software or website with existing application or database.

There could be software/hardware compatibility issue as some E-Commerce software may be incompatible with some operating system or any other factor.

B Non-Technical Disadvantage

Initial cost: The cost of creating/building E-Commerce application in-house may be very high. There could be deferral in launching the E-Commerce application due to mistakes, lack of experience.

User resistance: User may not trust the site beng unknown faceless seller. Such mistrust makes it problematic to make user shift from physical stores to online/virtual stores.

Lack of touch or feel of products during online shopping. Security/ Privacy: Difficult to guarantee security or privacy online transactions. E-Commerce applications are still evolving and changing rapidly. Internet access is still not cheaper and inconvenient to use for many potential customers

liking one living in remote areas.

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