Ecommerce Pros and Cons

Atiqa Ibnath

CIS 2200

Part 1

(In connection to Muhammad’s essay)

In the digital age that we live in today, ecommerce has become a necessity.  Ecommerce creates new opportunities for business and can serve as an information agent that keeps both the buyers and sellers updated on the current market situation.  

However, before deciding whether the future of ecommerce can be promising, there are a few factors, which need to be taken into consideration and weighed such as the pros and cons of online businesses. Some of the ways in which ecommerce can be beneficial have been discussed below. [pic 1]

Ecommerce sites contribute in eliminating the geographical limitations of being confined into a geographical area. With physical stores, consumers have to go and buy products and services. However, with an ecommerce site, consumers can access the products anywhere and at anytime.

Ecommerce sites also help to gain new customers with search engine visibility.

        It is a given fact that branding and relationships cause physical retails to succeed. However, online retail can be driven by traffic from search engines. Customers can follow links in search engine results and can eventually end up in ecommerce sites. This can help some ecommerce businesses to become renown and gain popularity.

One of the advantages of an e-commerce business is low cost.  A web based management system allows for automated inventory management, thus decreasing the costs associated with it. Not only that, the overhead costs of running an ecommerce store is less than running a physical store. For example, in case of a physical store, rent has to be paid, which ecommerce does not require. Customers could benefit in the form of discounted prices as a result of the low cost.         

One of the most important factor to consider in the case of ecommerce businesses is that on an ecommerce website, customers do not have to go through the hassle of pushing a shopping cart or try to find a product in different aisles. It also spares them the trouble of travelling long distances and travel expenses, which is preferable.  They can sit in the comfort of their own homes and click through or use a search box to immediately narrow down their product search. Some websites also remember customer preferences and shopping lists to help customers when they purchase again in the future. Customers can also research their product before buying it by comparing the price and quality with other online stores, read reviews before buying it and get the best deal on their purchase, all through the simple click of a mouse.[pic 2]

        Ecommerce also contributes in a targeted communication system between a buyer and seller. An ecommerce merchant can access a lot of information about its customer through cookies and the information provided in a customer’s registration form. This can help the merchant identify the customer’s preferences and can help to communicate relevant messages.

Ecommerce websites can remain open and run all the time. This makes it convenient for both the customer and merchant. The customer can shop anytime they want. Lets say after a long day of work, a person can come home and shop in a relaxed mood. This also benefits the merchant, because he or she can get more orders this way.

E-commerce sites can aid in equipping customers with information. It helps merchants provide as much information they want, which makes it more attractive to the customer. From the product description to customer reviews to shipping charges, a customer gets all the information they need. This leaves the merchant with more time to focus on other things; instead of spending time answering questions and answers. This also increases sales.

Opening up a store globally helps to reach more customers. Ecommerce allows a merchant to do just that, instead of having to open numerous stores worldwide. With a well-designed ecommerce site and a quality product, it can be easier to grow and expand as a business. Analytics also helps to find the right marketing strategies to reach the proper audience. This can result in increased growth and sales.

From the above information, the future of ecommerce might look quite promising. However, there are still a few lacking which need to be focused on, such as the fact that not everything can be purchased online and that ecommerce does not allow customers to experience a product before purchasing it. While some products look attractive in pictures, they may look very different in real life.  Not only that, some products needs to be tested before purchase. For example- perfumes and makeup.  A person cannot just buy a perfume without knowing how it smells or buy a concealer without knowing if it will match their skin tone. In such cases, customers want to experience the product before purchasing it, which is not possible in an ecommerce site. There are also certain products, which need to be purchased from physical stores. For example, certain types of clothing or shoes need to be tried on first before purchasing to see if they fit.

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