Advantages and Disadvantages of E-Commerce

1952 words 8 pages
James Davis
Advantages and Disadvantages of E-commerce

Bus 107
Debra Wilson
November 22, 2010
In today’s economy, business moves at a rapid pace and shows no sign of slowing down. Many of the revolutionary changes that have taken place and supplied this economic engine with fuel are due to electronic commerce. The introduction of the computer into the workplace has brought about manifold changes and seemingly unlimited possibilities for merchants. This new technology offers many advantages for businesses but there are disadvantages as well. Each company must weigh the pros and cons while determining what direction they will take.
Advantages and Disadvantages of E-commerce Electronic commerce is a fundamental part
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Sales support and order-taking processes can also be minimized. Example: Cisco began selling online in 1998 and seventy two percent of their sales were conducted on the web. They avoided 500,000 calls per month and saved $500 million in the first year. Today, ninety nine per cent of their sales are online. (Schneider, 2010) Electronic commerce can increase productivity for consumers. Customers can now compare multiple items at once instead of going from store to store. Decisions can be made quicker and the consumer is more informed. E-commerce allows businesses to be interconnected and share information. Product manuals and specifications can be made available online. Customer service can be reached by e-mail or chat. (Wienclaw, 2008) Digital products can be purchased and downloaded on the web immediately. The customer no longer has to wait for a catalog or specification sheet but can acquire music, video files, software, and images in seconds. These items cost less than hard copies and one will avoid packaging and shipping costs. Example: Turbo Tax sells tax preparation software in a downloadable format and can be purchased and in use within minutes. (Schneider, 2010) Although lower in number, there are also disadvantages in e-commerce. While many businesses have enjoyed great success over the Internet, some do not fare as well. Some businesses may never be good candidates for e-commerce. There are items that must adequately be inspected up


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