Advantages and disadvantages of electronic commerce

Advantages and disadvantages of eCommerce compared to traditional commerce

Our advantages of electronic commerce they are very numerous compared to traditional commerce. It also offers many opportunities for retailers or merchants not only to have an additional sales channel, but also to open new markets, promote their products and expand their business possibilities. In this sense, electronic commerce is a competitive advantage and a very interesting business opportunity.

El E-commerce the final consumer (B2C) in Spain is experiencing a excellent development and there are still many opportunities to exploit. Although we cannot lose sight of the fact that there is still much to do, start an online business or adapt the current one taking advantage of all the eCommerce possibilities.

Advantages of e-commerce

Advantages of e-commerce

Some advantages of electronic commerce compared to traditional commerce are the following:

  1. Overcoming geographic limitations.
  2. Obtaining a greater number of customers both online and offline thanks to the increased visibility that the Internet allows.
  3. Much lower start-up and maintenance cost than a traditional business.
  4. Greater ease of displaying the products for the entrepreneur.
  5. Easier and faster to find the products for the buyer.
  6. Saving time when making purchases for the buyer.
  7. Optimization of the time dedicated to the business and to customer service for the employer.
  8. Ease of implementing and developing marketing strategy based on discounts, coupons, lots, etc.
  9. Possibility of offering much more information to the buyer.
  10. Ease of offering a comparison between products, including characteristics and prices.

Surely there will be many more advantages of e-commerce since as time passes and technology evolves, online purchases increasingly account for a higher percentage of purchases made by users.

Disadvantages of eCommerce

Disadvantages of eCommerce

However, we cannot help but consider some disadvantages of eCommerce that must be taken into account before starting or expanding any business. They are as follows:

  1. The competition is much higher, since anyone can start an e-commerce business (at least in theory).
  2. There are still many consumers reluctant to buy without seeing the product and who do not trust online payments.
  3. Shipping costs are expensive when business volume is small, and this is a major disadvantage for small businesses.
  4. Customer loyalty is much more difficult and requires a professional strategy.
  5. Promoting an online store requires more personal work than promoting a store at street level.
  6. Site security can give business owners many headaches.
  7. Not all products that can be sold online are equally profitable, and the marketing strategy must be evaluated very well.
  8. Consumers want to have it all: the best price, the best service and personalized attention. Competing on these terms is increasingly difficult for small companies compared to large ones.

In short, eCommerce is a great opportunity, but it is necessary assess the advantages of e-commerce and its cons to only launch if we really have a good business proposition. If you are looking for ideas, here is a good selection of email examples.

It may interest you -  Conclusions of the Report on Electronic Commerce in Spain (2013 edition) 

Related article:
5 examples of successful e-commerce

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  1.   Camila said

    Another important piece of information to take into account when trading through virtual platforms is price.

  2.   Laura said

    Good post!
    In our blog we have also written a post about the advantages and disadvantages of ecommerce. We agree on some points and not on others.
    A greeting.

  3.   miguel scale said

    Excellent article, I believe that great progress has been made in online store development platforms, although there is much to improve, especially by the developers of the payment modules. Greetings

  4.   Andrés said

    Hello greetings!
    How to increase my sales more easily?

  5.   Hector said

    Camila, as an accounting support if there are no invoices and tickets?

  6.   Sebastián said

    Excellent article. The world has to go for cloud environments and continue to improve Electronic Commerce