Business Studies – 3.3.5 Ecommerce | e-Consult
3.3.5 Ecommerce (1 questions)
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Advantages of E-commerce:
- Wider Market Reach: E-commerce allows the business to reach customers beyond its local area, potentially expanding its customer base significantly.
- Lower Operating Costs: Reduced costs associated with rent, utilities, and staffing (e.g., fewer sales assistants) can improve profitability.
- 24/7 Availability: The online store is accessible to customers at any time, increasing sales opportunities.
Disadvantages of E-commerce:
- Increased Competition: The global nature of e-commerce means the business faces competition from businesses worldwide.
- Security Risks: The business is vulnerable to cyberattacks and data breaches, which can damage its reputation and lead to financial losses.
- Logistics and Delivery Challenges: Managing shipping, returns, and ensuring timely delivery can be complex and costly.