ELECTRONIC COMMERCE. DEFINITION, ADVANTAGES AND DISADVANTAGES.

Maybe the word e-commerce sounds like Chinese, but it might sound more familiar. Do you know what it is? Its advantages? Your disadvantages? If you continue reading we will try to explain to you without much technicalities everything you need to know about electronic commerce.

What is e-commerce or e-commerce?

It consists of the distribution, sale, purchase, marketing and supply of information of products or services through Internet. For small businesses, it is a great market opportunity, since it allows you to expand your sales schedule 24 hours a day and that any potential customer can access your store regardless of where in the world you are.

ecommerce

What are the advantages of electronic commerce?

Disappearance of geographical and temporal boundaries.

Thanks to e-commerce, your store can be anywhere!

Hours of sale 24 hours a day during the 365 days of the year.

Goodbye to the opening hour’s restrictions. You will be 365 days a year during the 24 hours of the day for your clients.

Reduction of costs of production, administration and storage.

If you settle for a 100% online store you can save yourself the costs of having an open physical store. Either rent or employee expenses. If you settle for a mixed model, shop online and physical.

Obtain a greater number of customers both online and offline thanks to the increased visibility that allows the internet.

Internet is like a jungle. You’ll have to do it well to stand out in the middle of all the stores that are hosted on the net and find your future customers.

Direct contact with the client, without intermediaries.

The deal is direct, your shop, your client and you. This equation would change if you decide to leave the controls of communication and online sales in the hands of a professional.

Flexibility in payment methods. Cash on delivery, with card, PayPal what the customer prefers!

Easy to offer a comparison between products, including features and prices.

What are the disadvantages of electronic commerce?

Distrust of the method of payment and the quality of the product.

The presence of electronic fraud does not help this type of commerce because it creates certain insecurities.

Intangibility

The distance between the products and the customer for some is a big problem. The inability to touch and check the quality often pull back some customers.

Distance between the customer and the seller.

Sometimes the feeling of distance between the customer and the seller is an inconvenience to make purchases, especially if at the time of processing returns of products or complaints. It is very important to take care of the communication with our clients to try to forget the distance between the clients and us. If we publicly resolve incidents in social networks generates trust among users.

Shipping costs

The shipping costs of your products can be an inconvenience if the volume of sales of your business is small.

Promotional expenses

To be able to promote an online store among all the brands that are already settled in the network will be an extra job. To achieve this you will need to hire a professional to promote you and succeed beyond your physical store.

And for the most curious …

Types of e-commerce.

B2C (Business-to-Consumer): Companies that sell to the general public.

B2B (Business-to-Business): Companies doing business with other companies

B2G (Business-to-Government): Companies that sell to government institutions.

C2C (Consumer-to-Consumer): Consumers buy and sell between them.

Surely since you know more advantages and disadvantages of electronic commerce. Do you share them with us?

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