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The Basic Advantages and Disadvantages of Ecommerce

By Mark Bennett Subscribe to RSS | March 14th 2012 | Views:
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Since 1990, ecommerce has been playing a major role in global business development and distribution. Also with the advent of the World Wide Web, nowadays anyone can become a global seller of goods and services. Business operation has become so efficacious that you no longer need a huge distribution network and management teams.

With the advent of various Broadband Providers, ecommerce has become the perfect choice for business operations. Now let us see some of the basic advantages and disadvantages of ecommerce in today's scenario:

Creating New Business Relationship

Ecommerce gives a wide range of opportunities to establish and maintain relationships with people who could be potential buyers, business associates, and manufactures. It helps them to easily locate and be in contact with you, making it easy for you to have new business opportunities. Customers who don't know you existed will come in contact with you; manufacturers and suppliers will be constantly trying to have a business relationship with you and even other business will also come forward to have business partnership opportunities with you.

A 24/7 Business

Basically ecommerce helps to create a business that runs 24 hours in a day and for 7 days in a week. Irrespective of whether you are available or not, customers can browse your products and even make a purchase. This can be one of the best advantages of ecommerce where you don't need to physically have a shop or be present and still do business with the customer and suppliers.

Marketing Online and Product Awareness

With ecommerce, you can literally reach out to millions of customers and sell products to them. Besides that you can increase your company name, brand and website by reaching out to new markets and venues where you display your website and products. Not only that, product awareness and new customers can be created that will in turn help to promote your brand name and product.

Customer Loyalty

Another advantage of ecommerce is that it creates a market where customers can purchase the items you sell, and view the unique ways on how it is displayed. Ecommerce can help to describe your product in an informative, visual and interactive way. So what happens is that customer will be loyal shopper by buying from you; making ecommerce a great simple tool for customer satisfaction.

Increasing Business Sales, Company Profits and decreasing Cost

Since ecommerce is a business that is sans a physical entity, the cost of running, marketing, and selling products reduces great extend. With the purchase and marketing tactics being reduced; it leads to increasing the sales to a great extent. Naturally the margin of profit will increase, giving you the eternal satisfaction of running the business.

Now the basic disadvantage of ecommerce is the following

Starting Business

The basic problem with ecommerce is that anyone can start a business. It gives the convenience to any fool or crook to start a business and create a website that sells bad products and eat up customer’s money. Since there is no standard guideline in this kind of business, keeping a constant check is not possible.

Product Quality

Okay, this you can say is the major problem of ecommerce. Since you don’t see the product physically or even touch it, you can never be sure of the quality of it. This as you know doesn’t allow customers to have a direct interaction with the sales rep, so you can never know what are the pros and cons of the product.

No direct Communication

Similar to the above point, since the business is done online, there is no chance for you to see the business owner and contact him or her personally.

Prone to hackers

Since you are selling your through a website, there are certain miscreants who could take control of your website and do illegal activities.

After referring the pros and cons of ecommerce, you may find it hard to avoid using this unique tool. It is an effective tool that can bring enough revenue and customers but at a certain point of time you need to constantly check on the progress that you are making.

Mark Bennett - About Author:
Being a freelance writer and active blogger, Mike likes to share his thoughts with the rest of the world and to sources out some great services offered like that of Broadband Providers. He believes that ecommerce is an innovative business strategy that you could use to market your products and services in larger markets at less cost.

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