Advantages and Disadvantages of E Commerce


We are all familiar with what commerce is. A basic class in high school teaches that commerce simply deals with the buying and selling of goods and services. Commerce will ever be part of our lives but E-commerce is strongly influencing the way people carry out businesses in the Internet-driven world.

By now, we should all be aware of what is dropshipping. E-commerce is complementing the traditional commerce we are first introduced to in life. Just as email complements the traditional regular mail system, e-commerce does the same for our local traditional commerce.

Before examining the numerous advantages and the few disadvantages of e-commerce, a quick look at what the subject entails is necessary to understand what e-commerce is and the different models practiced in today’s world where the Internet dominates.

What is eCommerce?

Electronic commerce, commonly referred to as e-commerce defines all forms of businesses carried out over the Internet. Shopping online, for instance, is the most popular form of e-commerce we engage in over the Internet more than ever before.

In addition, e-commerce covers more areas of transactions such as online ticketing, payment gateway, auctions, and Internet banking among others.

E-commerce has continuously grown. It is the quickest growing retail market forecasted to get to the $4.14 trillion mark in sales by the year 2020. Mobile commerce (m-commerce), a branch of e-commerce is equally expanding tremendously owing that to the availability of smartphones.

This is particularly seen with the millennials who are more comfortable with shopping over the Internet using different types of handheld devices. According to reports, the m-commerce sector had a 39.1% growth in sales in the given year compared to the year before.


The fact about e-commerce is that it can be in a variety of forms, providing many transactional relationships with consumers and businesses. Some common examples of e-commerce are:

The Huge Advantages of E Commerce

The advantages of e-commerce are huge. It has shaped our lives, giving a lot of convenience and comfort. Here are the advantages of e-commerce:

Saves Customers a lot of Time

E-commerce speeds up the buying process. Unlike the traditional commerce which may require driving a distance to the location, with e-commerce, a smartphone or a computer right there in the comfort of your home will get you connected to make a purchase and have it delivered to your doorstep.

Reduces the Cost of Running by Hiring Virtual Assistants

A big plus to e-commerce is the affordability of employing staff. You can outsource different tasks to virtual assistance globally.

Helps the Retargeting of Customers Easily

E-commerce offers various ways merchants can retarget their customers easily. This includes pitching them via email, sharing coupons, by using paid adverts and organic search results.

Reviews Available

Customers get some protection through reviews before placing an order for a product. Reviews that are positive help to build confidence and trust from customers.

Provides Operational Cost that is Significantly Low

A major benefit that plays a key role in e-commerce is the affordability of running the business online. Unlike in physical retail outlets, you don’t need that huge amount of money to maintain your presence in the property. Your hosting services are about all you need to worry about which is actually manageable.

Flexible & Fast for Customers to Buy Items all Around the Clock

E-commerce presents more flexibility over traditional stores. Buyers are able to place orders 24/7. More flexibility is enjoyed in customer service practice. The goal is assisting the customer get the needed sales support.


Has no Geographical Limitation

Customers of the e-commerce platform have unlimited access to the business all over the world. Everyone who can use the Internet can get into the e-commerce world without restrictions from any location. E-commerce stores give the merchant exposure to a global audience to reach as many people as possible through Internet connectivity.

E-commerce is Eco-friendly

E-commerce stores are eco-friendly compared to the traditional stores where invoices, receipts, and a lot of other paper-based materials are issued. With all information after purchase able to be transmitted digitally, the business is built strongly on eco-friendliness.

Offers the Buyer Freedom to Compare Prices and Products

Before ever placing orders, customers have the freedom to compare prices and products. A good one about e-commerce is that you have many stores selling the same product. You can access each of these stores to compare prices before deciding on which store to buy from.

This saves the customer from having to move from store to store if they have to compare prices of products before choosing from which store to buy from.

Disadvantages of e-Commerce & Dropshipping

As with most businesses, the e-commerce business model is not without its disadvantages. Here are some of the disadvantages of e-commerce.

Product Quality is not Guaranteed

A letdown of the e-commerce business is not being sure of the quality of the product to be purchased. Seeing a very beautiful photo on the store about the product may not totally tell how good the product is. Sometimes, reviews may also be misleading.

This can be attributed to the lack of physical contact and touch the customer is unable to have on the product. Physical feelings, smell, touch, and taste are the positive aspects when you have access to a product before purchase.

Security Concerns

Making purchases online requires the use of the user’s personal information such as payment details. This can be dangerous with a lot of insecurity surrounding Internet usage.

Hackers are on the increase. The fact is all online stores regardless of the size are open targets for online thieves and scammers. You are not able to predict what happens with the details you’re sending across to an e-commerce store.


It Is Difficult to Buy Some Products Online
Some items like gold and others are very delicate to buy online. It doesn’t come that easy to trust merchants who sell these items. They are usually costly and being not sure of the quality, it becomes difficult to purchase such items online.

Because you don’t have the ability to inspect this item physically or try the products out before making payments, it makes the traditional approach the best in this area.

Frequent Site Crashes

You can’t rule out the possibility of technical issues when dealing with the Internet. Website crashes especially with some hosts occur sometimes. Downtime may be another issue that may hamper e-commerce effectiveness. All these can be a delay for the buyer.

Are the Pros and Cons of E Commerce all to Know about it?

No, there is so much to learn about e-commerce and one of these is different types of e-commerce business models.

All transactions that take place between businesses and the consumer can be classified into four. These are:

1. Business to Business – B2B

Abbreviated as B2B, this business model is a type that sells its products and services to other businesses. For instance, many companies rely on good quality software to run their business. Providing software for other businesses to run is a typical example.

2. Business to Consumers – B2C
This is a business model where a business sells its products to consumers. This is what usually happens to many businesses online. For instance, this is what happens when you buy products from the retail store online.


3. Consumer to Consumer – C2C

Consumers can transact business among themselves. When you sell your used items to a consumer, you are into C2C e-commerce business model. Users of eBay frequently use this model for their sales.

4. Consumer to Business – C2B

A consumer can sell his services or products to other businesses or companies. For instance, when you offer freelance writing services to businesses online, you are into C2B.

There is yet more you can know about the e-commerce business model. A little more research will get you up to speed with many more details about this thriving business model of this century.

Societal Benefits of E-commerce

There are numerous benefits attached to e-commerce. The society we live in is better for it. Here are some:

Creates Job Opportunities

E-commerce is a massive platform that creates a lot of job opportunities for people. With the advancement in technology and the Internet taking away jobs from people, it is in another direction offering lots of job in return. Amazon, the e-commerce giant, for example, employs more than 300,000 people.

There are tons of digital companies rising up all over the world. The Asian world like China is harnessing the power of the Internet to enhance productivity and create jobs.

E-commerce is Changing the Entertainment Industry

The provision offered by e-commerce that enables customers to buy their favorite songs online is a great addition to the e-commerce niche. You can with the click of the button, download, play videos and games, making it an invaluable addition from the e-commerce system.


Accessing Online Education

The amazing growth of the e-commerce channels has opened up a new way to access quality education. Students can acquire knowledge in a matter of seconds with the click of the mouse. The virtual classroom systems bring in a different approach to this area.

The Environment and e-Commerce

E-commerce lets you have fewer papers to deal with, since a lot can be saved digitally. The Internet prevents us from frequently moving to locations. We can do most of our transactions behind the computer. There are no needless traffic issues as a result, a situation that helps to prevent air pollution around us.

For sure, the e-commerce world is blessed with countless advantages and benefits. Though the disadvantages are there, we have more to benefit in the greater number of advantages.