E-Commerce-Boon or Bane

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E-Commerce is very famous worldwide for its outstanding functionalities. But yet, there may be some advantages and limitations too for its unprecedented growth. So let us first discuss some advantages.

-Advantages

To talk about advantages, there are plenty of them. One such advantage of e-commerce is very lower transaction costs. By serious automatic processing, the web can appreciably lower both taking- order costs and service to the customer costs after the sale. Another great advantage is that online shops run 24/7 and never ever close. A site called Amazon.com offers a unique feature. It includes the option of checking out the related books that people purchased after buying the book which the user wanted. Here you can see interconnected books that people are buying which a normal bookstore cannot offer, this results into customers buying more books out of interest. Globalization which is the need of the hour walks hand in hand with e-commerce. That means through e-commerce, one irrespective of his location anywhere in the world can access through the site and shop, thus resulting convenience not only to the buyer but also to the seller. Also, online access 24/7/365 is a great miracle that has happened. Adding to the list of advantages, when there are online auctions, then that time it's a festival for buyers because the prices go down due to plenty of competitors, thus satisfying both customers and sellers.

A well incorporated website can lure customers with more information than previously obtainable. For example, at any time, customers can check out where the heck their order is if Dell tracks each computer through shipping and manufacturing processes. Fed-Ex did exactly the same thing when they started online package training.

Other great advantages are the facility to put up order over several days, facility to see actual prices of products by organizing products, facility to effortlessly build custom orders which can be very complicated, facility to easily discern prices between more than one trader and the facility to explore large catalogs without any difficulties etc.

-Limitations

Just like every other matter on earth, e-commerce too has its limitations. Limitations are of two types-technical and non technical.

Technical Limitations

Some technological solutions could be expensive though it’s believed that e-commerce is cheap. Some protocols required are not quite standardized around the world. There is not that much reliability on some processes. Insufficient telecommunications bandwidth and limited access to dial up; cable, ISDN, wirelesses are also some of the limitations. Also, software tools keep on advancing like Netscape 3, 4, 4.7, 4.75.

Non Technical Limitations

There is a fear to the customers that whether their personal information given is wrongly used. Also, outsourcing technical support in foreign languages is difficult. Most of the people are not used to paperless, faceless, non physical transactions. So trust factor is less. Payment information could also be unsecured. Due to the fear of lack of security and privacy, vulnerability to fraud and other such crimes is on a high.

So, though e-commerce is a multi billion industry, yet, it has got its limitations

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