Advantages and Disadvantages of E-Commerce Essay

1946 Words Jan 9th, 2012 8 Pages
James Davis
Advantages and Disadvantages of E-commerce

Bus 107
Debra Wilson
November 22, 2010
Abstract
In today’s economy, business moves at a rapid pace and shows no sign of slowing down. Many of the revolutionary changes that have taken place and supplied this economic engine with fuel are due to electronic commerce. The introduction of the computer into the workplace has brought about manifold changes and seemingly unlimited possibilities for merchants. This new technology offers many advantages for businesses but there are disadvantages as well. Each company must weigh the pros and cons while determining what direction they will take.
Advantages and Disadvantages of E-commerce Electronic commerce is a fundamental part
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(Boyer, 2001) E-commerce increases the speed in which transactions take place. Customers no longer have to wait in line to purchase items but can now securely complete transactions online. Customers do not have to travel to pick up their merchandise but can have it shipped directly to them. If a customer needs to contact the business, this can be done quickly via e-mail. Most companies now provide adequate information so that customers are able to place their own orders and answer their own questions (FAQ). This is called self-sourcing and it encourages consumers to do some of the work normally done by the business. This reduces costs and errors while also engaging the consumer. Example: Fed-Ex was a pioneer in the use of online tracking. They allowed customers to enter a tracking number on the Fed-Ex web site and monitor their packages. This removed the operator from the transaction, cut expenses, and satisfied the customer. It is also common for companies to set up account profiles for customers that reduces errors and speeds up processing. Businesses can add new features to their products and services such as updates, activities, or new products. Many companies spend large amounts of money to encourage consumers to visit their web site. Contests and prizes are often used to prompt return visits. (Boyer, 2001) E-commerce allows companies to increase the specialization of their employees and streamline their operation.
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