Advantages and Disadvantages of E-Commerce

Electronic commerce plays an essential role in advancing information technology as well as communication. Many markets have progressively internationalized and become competitive in the era of economic globalization. E-commerce can help the economy on a local level even though the covid-19 pandemic further forces industries in severely affected areas to insource towards local production because global trade was shut down. Additionally, improvements in the internet, information technology, and logistics and delivery have made it possible for almost every business to conduct business, exchange information, and collaborate on a global scale. As a result, societies now show an unexpected interest in electronic commerce. However, despite the fact that e-commerce has dominated the market, online services and trade have both significant advantages and disadvantages. 

 The usage of electronic commerce has also provided business organizations the capability of connecting with corresponding business organizations in order to reduce production and delivery times following the Toyota managing system, also known as “Just in time production” and “just in time delivery”. Utilizing e-commerce and following the Toyota production system yields a business a globally competitive position. The internet has become prevalent worldwide on all levels whether personal or business.

Like any other business where there are always ups and downs, E-commerce has benefits and drawbacks. Running this kind of business has its own challenges. However, being aware of such challenges will help people in charge of this business avoid common consequences. In e-commerce business , there is an unable to test items first hand before buying. It is among the most typical issues encountered when shopping online. Customers are unable to test an item before purchasing it when they shop this way (Alhamdi et al., 2019; AL-Abrrow et al., 2020). E-commerce also eliminates a critical step in the purchasing process, which is evaluating the product. The product promotion videos may have been created in a very skilled and persuasive manner. Nevertheless, many consumers are hesitant to purchase anything they haven't tried out or seen for themselves. This is so because many consumers do not perceive a genuine guarantee of product quality. E-commerce is missing one thing that many customers consider to be essential, which is the personal touch. It means with online shopping there is no chance to be the new relationship (Searchcio, 2019; Al-Abbrow et al., 2019; Alnoor, 2020).

Despite what was the disadvantages of e-commerce, the numerous advantages of this business manage to successfully attract the attention of both companies and customers. As we have already mentioned technology is evolving tremendously and quickly, so it is possible to witness the prevention of technological defects in particular in the near future. It is also worth not to forget that today there is a new generation of influencers who are soon to make their touches on the future of e-commerce. Moreover, those members prefer remote work and favor flexible work conditions. They prefer to work in remote areas and do the jobs that rely mostly on technology. So in short, electronic commerce is the future.

References

Abbas, S., Hadi, A. A., Abdullah, H. O., Alnoor, A., Khattak, Z. Z., & Khaw, K. W. (2021). Encountering Covid-19 and perceived stress and the role of a health climate among medical workers. Current Psychology, 1-14.

Alhamdi et al., 2019; AL-Abrrow et al., 2020)

Wat, F. K. T., Ngai, E. W. T. (2000). A Literature Review And Classification Of Electronic Commerce Research. Information & Management, 39, 415-429. 

Wong, L. (2017). E-Commerce Advantages And Disadvantages. Available: https://blog.apruve.com/ecommerce-advantages-and-disadvantages.