Question

Explain the advantages, disadvantages and risk levels of e-Commerce Vs regular commerce

Answer 1

Answer:

The advantages of e-Commerce versus regular commerce are:

• e-commerce is low-cost trading. This does not need costing for the physical existence of the retail or a shop. The maintenance and updating of the retail are not required, the staff costing is saved.
• E-commerce saves time of customers, as they can do purchasing online, there is no need for moving from one place to another, if they do not like it they can switch to other sites or compare prices.
• Some e-Commerce sites provide a facility of many product options in just one site only like Amazon, they have apparel, grocery, home decor, electronics, and many other households or office-related requirements.
• This type of trading is available every time. i.e. 24*7
• Tracking of product delivery is easy and convenient.  
• Buying from any country and sell internationally as one global village.
• Focusing on the customer through promotional events is easy.
• Expanding a business is easy.

The disadvantages of e-commerce are-

• No physical touch, can't try and buy.
• Not so quick and instant needs time for delivery.
• Issue of Duplicacy and reliability
• Error in a site networking can damage business.
• System security issue.
• Needs huge promotional activities.
• Impatient customers

The advantages of regular commerce are- the existence of physical outlet, have a good and reliable reputation still despite decline because of growing online purchasing, the purchasing is instant, customers can try and feel than make a purchasing accordingly. No issue in security as no hackers scammers can get access. The people who are not connected through the internet can visit stores.

The disadvantages of regular commerce are- it needs physical infrastructure which needs high investment, maintaining retail and staff costing is additional, sometimes market are specific provides only product like a fish market, furniture market, so the customer needs to travel more and go to the particular market for purchasing another thing. Retailers cannot open shop all the time so the competition with e-commerce increases. Consumes time as moving from residing place to the shop and if the product is not available so the efforts and time will be wasted.

The risks of e-commerce are of competition with regular trading, both commerce has its own advantages and disadvantages. One is technology-based and another is based on physical existence. As e-commerce needs accessing of internet so the drawbacks of internet access is a risk for it like hackers, security issue, cybercrime, issue of network bandwidth can disturb whole business accessing. The regular commerce is physically bounded, the retailer needs costing for land, staff, electricity and its maintenance. The issue of shoplifting, theft or damage to the store like fire, earthquake, or any other natural calamity. For example- All over the world is suffering from deadly coronavirus so the regular markets are shut to avoid spreading as physical touch or contact is dangerous but e-commerce has no such issue.

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