BENEFITS OF E – COMMERCE E-Commerce is gaining popularity because it offers the following benefits. 1. Global Market: E-Commerce enables business firms to reach out to customers all over the world who have an access to internet. Thus, the whole world becomes a potential market for business enterprises. 2. Lower Transaction Cost: E-Commerce reduces the cost of business transactions substantially. For instance, the number and cost of customer service representatives in a bank can be reduced by using net banking. 3. Higher Margins: An e-commerce firm can earn higher margins as the transaction costs are reduced to a great extent. 4. 24X7 working: A website is open all 24 hours, 7 days in a week it can, thus, take orders, keep an eye on delivery of goods and receive payments at any time. A business firm can provide information about its products and services to customers around the clock. 5. Wide Choice: For the consumers, the whole world becomes a shop. They can look at and evaluate the same product at different websites before making a purchase decision. 6. Customer Convenience: Customers can shop from home or office. They don’t need to stand in long queues to talk to a salesman. They can read details regarding model numbers, prices, features etc. of the product from the website and purchase at their own convenience. Payments can also be made online. 7. Direct Contact between Business and Consumer: E-Commerce enables business firms to establish a direct contact with their customers by eliminating middlemen. 8. Customer Satisfaction: E-Commerce allows quick response and redressal to consumer complaints. This helps in increasing customer satisfaction. LIMITATIONS OF E – COMMERCE E-Commerce suffers from the following drawbacks. 1. Security: Security continues to be a problem for online businesses. Customers might be reluctant to give their credit card number at the website due to a number of credit card fraud cases. 2. System and Data Integrity: Data protection and integrity of the system that handles the data are serious concerns. Computer viruses may cause data corruption, file backups, storage problems etc. there is also a danger of hackers accessing the files and corrupting accounts.
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- Spring '20
- Dr. ASRAVOR
- Business, Credit card, World Wide Web