Question

What business benefits does Ecommerce provide? What problems do they face?

Answer 1

The business advantages of E-commerce are-

1. It reduces the cost of maintaining offline stores as there is no need to buy offline stores as the business is carried on the e-commerce portal. The company can maintain a warehouse where it can keep the products.

2. It allows companies to reach out to a much larger audience and serve in a much larger area. This is because, having a physical store can only cater to the demands of a particular area or city, but with e-commerce, a buyer can place orders from anywhere in the country.

3. Keeping a track of sales, and information of the customer is much easier for an e-commerce business. This can help in the marketing activities as well as only relevant customers will be targeted through the marketing activities which will lead to a higher return on investments for marketing.

4. It is easy to acquire more new customers through e-commerce. Also, business can use additional advertisements in order to draw the attention of people towards its products and services.

5. E-commerce can help to operate the business for the whole day for the whole week. This can be a better experience for consumers. They can place orders anytime, anywhere as per their convenience.

The problems faced by them are-

1. There can be a fraud while accepting payments online in case of E-commerce, which leads to very bad customer experience.

2. It limits the interaction and the personal touch that some people wish to experience when they want to shop.

3. The e-commerce business is very competitive. There are so many players selling the same product at a lesser price, so the business also has to maintain a competitive pricing strategy in order to survive in the market.

4. The time taken to get the product to the final customer is sometimes very much due to multiple reasons. This can be a bad shopping experience for customers.

5. Some people prefer to buy products like EyeGlasses after testing them personally, hence selling these kinds of products can be difficult for the business.

6. In some areas, internet access is not good, which can be a problem in case of e-commerce business.