Business Studies – 3.3.5 Ecommerce | e-Consult

E-commerce offers numerous advantages for businesses, particularly in terms of reaching a wider customer base. Global reach is a significant benefit, allowing businesses to sell products and services to customers worldwide, overcoming geographical limitations. Lower start-up costs are also attractive, as establishing an online store is often cheaper than a physical shop. Marketing is streamlined through various online channels like social media, search engine optimization (SEO), and targeted advertising, leading to increased marketing effectiveness. Operations can be simplified through automation of processes like order processing and inventory management, resulting in improved efficiency. Furthermore, e-commerce facilitates 24/7 availability, catering to customers across different time zones. However, there are also disadvantages. Increased competition is a major concern, as businesses face competition from both local and international players. Security risks, such as data breaches and fraudulent transactions, pose a threat to both the business and its customers, requiring significant investment in cybersecurity. Logistics and delivery challenges can be complex and costly, especially for businesses operating internationally. Building customer trust can be difficult online, as customers cannot physically inspect products before purchase. Finally, technological issues like website downtime or system failures can disrupt business operations and lead to lost sales.