Benefits and Drawbacks of E-Commerce

Global marketplace

Global marketplace is very effective in a company. It can broader your company's reputation and make it very known around the world. This can rise the company profit by a lot but it needs a very good strategy depending on what you are selling and choosing few countries that will make you the most profits possible. But the most important thing in global marketplace is that it allows you to reach much more customers.

Low start-up and running cost

If you are planning to open a store and you have a very low budget, then making an online store is the best choice. Making an online store is a better start. You can set up a traditional store which you can involve in it renting places or for example buying a stock etc. This will reduce the staff hiring which means you will pay much a less. If you owe a store that will cost a lot to rent.

Search facilities
Most e-commerce sites have a search facility. Search facility allows customers to take only few seconds to find the product they want. Or you can search for a stock if you want and it will direct you to there. 

Gather more customer information

learning about your customers is the key to make a huge profit. So, you need ways to track where the purchases go. There is loyalty cards that allow you to track purchases and where they go. They have to register to buy products from the online store. Once he/she logs into the account there will be greetings and suggestions of what they might be interested in.


Alternative income sources

It is when the website advertise the pay-per-click. This can be a negative thing as it will drag the customers away from the website as each click to the advert would gain money for the website.
the most effective way to gain income resources for the company is to sell watches, this can be viral in the global world and you also can sell the watches parts which customers may want to purchase as if they damage the watch they will need new part.

Pricing Opportunity

An example of pricing opportunity is when there may be discounts for the shoppers online which could encourage them to change their method of purchase and buy products online.

Drawbacks

Consumer Trust


Some customers that purchase from online they do not like it because they can not speak to anyone from the business.

Delivery issues

Deliver issues is when you go to a normal traditional shop and when you buy stuff you can take them with you but online takes time to get delivered and also it can get damaged on the way that it travels.
  International legislation

it is when you have rules. for example if you are not over 18 you can not buy alcohol as it is against the lay of the UK AND US.

Security issues

security issues is when you are resisted to an online shop and it has all of your information like bank account etc. If hackers hack the website they can easily steal your information.

Product descriptions

Some customers worry that the wrong description on the product and they may get the wrong one. they also could get the wrong picture which could be from another factory.