Question- "Advantages of E-commerce outweigh the limitations". Elaborate.

Ans.

Advantages of E-commerce outweigh the limitations:

E-commerce has a number of advantages for the business, customers' and society at large. Doing e-business on the internet is cost effective and economical. Unlike the traditional business, in E-commerce there is no rental of store space, insurance etc. All you need is an idea, a unique product, and a well-designed Net storefront to reach cyber coustomers. Since the processing cost over the web is substantially lower, E-commerce means higher margins. Along with higher margins, businesses can gain more control and flexibility and are able to save time when manual transactions are done electronically.

E-commerce helps consumers to comparison shop.

There is better customer service and it saves both time and money of the consumers.

E-commerce helps create knowledge markets.

Digital products are highly customizable. They are easy to reorganize, revise, or edit. With information about consumer tastes and preferences, products can be differentiated (customized) and matched to individual needs.

They experience no traffic jams, no crowds, and do not have to carry heavy shopping bags.

Convenience and control for the consumer as products are available online 24 hours a day, 7 days a week.

Electronic marketplaces imporve information sharing between merchants and customers.

However, there are a few limitations of E-commerce related to suecurity and data integrity.

System scalability is issue due to large number of consumers shopping online.

The danger of hackers accessing files and corrupting accounts is also a serious limitation of transacting online. Security is a major issue for online businesses.

Computer viruses cause unnecessary delays, file loss, storage problems and system crash.

Data protection and the integrity of the system that handles the date are serious concerns.

Shipping delays, merchandise mix-ups, and Web sites crashing under pressure continue to be a problem in e-retailing. There is a continuing shortage of e-literate people in the work place. Quite a few have E-commerce skill and internet experience and foresight.

Traditional organisational structure and cultures were found to inhibit progress in E-commerce.

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