EC2.02 Positive & Negative Effects of the Internet on Businesses 1

Advantages and Disadvantages of Advantages and Disadvantages of E-CommerceE-Commerce

EC2.02 Positive & Negative Effects of the Internet on Businesses 2

Advantages of E-commerce to Business

Can display information, pictures, and prices of products or services without spending a fortune on colorful advertisements.

In some cases, makes order processing an easier task than before.

Can reach worldwide market with unlimited volume of customers.

Can operate on decreased, little, or even no overhead.

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Disadvantages of E-commerce to Business

Technology problems can cause your site not to operate properly, hence causing you to loose customers and sales.

The competition is so vast on the web. There can be several other web sites where a customer can go and purchase the same product you are offering.

Online payment security. Getting people to visit your site is one thing and getting them to have confidence of making online payment can be a big nightmare.

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Advantages to Customer

Convenience. Customers are able to shop any time of the day (24/7), from the privacy of their homes, office, etc. The E-commerce has been nicknamed “the mall that never sleeps.”

Variety. Basically customers can shop for any item they can think of. From, airline tickets, books, clothing, medication, etc

Hassle Free. Customers can shop online without physical contact with sales people. No fighting the congestion of shopping malls or moving from one store to another looking for product or service to another.

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Disadvantages to Disadvantages to CustomerCustomer

Privacy issues. One of the main reasons why people don’t purchase online is because of security issues. For instance personal Credit/Debit card information's are very sensitive on making an online payment. Such scams, frauds, and rip-offs are of big concern on the web.

Customer Service. Consumers are not always satisfied with their purchases, and when buying online they often don’t get the answers they need in a timely manner they demand.

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Retailers capitalizing on E-Commerce

Williams-Sonoma Store for cooks. Online

shopping, interactive gift registry, and gift ideas.

Restoration Hardware Online store review

Furniture, house wares, gift registry

Pier 1 Imports Furniture, house wares,

gift registry

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“Electronic Commerce”

CHANGING THE WAY PEOPLE SHOP

InterCart Shopping Cart

Digital Storefronts

Pro

Digital Storefronts

Banner Programs

Online Merchant Accounts

Digital Storefronts

Partner Programs

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Resources

Pier 1 Imports http://www.pier1.com/default.aspx

Restoration Hardware http://www.rensup.com/

Williams-Sonoma http://ww5.williams-sonoma.com/