eCommerce refers to the activity of buying and selling products online. eCommerce includes the four major market segments including business to business, business to consumer, consumer to consumer, and consumer to business.

Advantages of eCommerce:

  • Convenience: Transactions can occur 24 hours a day online, unlike brick and mortar businesses. Entire stores can exist online and operate from a seller’s own home, saving significant resources.
  • Selection: Stores can offer a greater variety of products online because stocking and shipping processes can be streamlined and located globally.
  • Speed: It is faster for customers to find the products they need and it takes less time to make a sale. With incentives like free shipping and quick delivery, eCommerce has risen to challenge traditional retail stores.
  • Lower costs: There are lower operational costs than brick and mortar businesses thanks to the lack of rent, savings in transportation, and more.
  • Easy to start: It is far easier to start and manage a business online.
  • Customer reach: You are not limited to a customer’s geographical location because your products are shipped. Through PPC advertising or organic methods like SEO, online sellers can reach customers internationally and expand their business at minimal cost.

Disadvantages of eCommerce:

  • Security: There is a chance that hackers might hack into your site and steal confidential information. Security breaches and flaws can significantly impact the fluidity and reputation of online stores.
  • Fraud: There is a higher risk of fraud as all interactions with customers is online or by phone.

Check out our blog “3 Methods That Will Help You Scale Your eCommerce Business”

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