Advantages and disadvantages of electronic commerce compared to traditional commerce

Electronic commerce offers a large number of advantages over traditional commerce. It also offers many opportunities for retailers or merchants, not only to have an additional sales channel, but also to open new markets, promote their products and expand business opportunities. In this sense, electronic commerce is a competitive advantage and a very interesting business opportunity.

In Spain, electronic commerce to the final consumer (B2C), is experiencing an excellent development, and there are still many opportunities to exploit. Although we can not lose sight of the fact that there is still a lot to do, we can start an online business, or adapt the current one taking advantage of all the possibilities of eCommerce .

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Advantages of electronic commerce

Some of the advantages of electronic commerce over traditional commerce are the following:

Overcoming geographical limitations.
Obtaining a greater number of clients both online and offline thanks to the increase in visibility that the Internet allows.
Start and maintenance cost much lower than a traditional business.
Easier to show the products for the entrepreneur.
Easier and quicker to find the products for the buyer.
Saving time when making purchases for the buyer.
Optimization of time dedicated to business and customer service for the employer.
Ease to implement and develop marketing strategy based on discounts, coupons, lots, etc.
Possibility of offering much more information to the buyer.
Facility to offer a comparison between products, including features and prices.

Disadvantages of electronic commerce

However, we can not stop considering some drawbacks of electronic commerce that must be taken into account before starting or expanding any business. They are the following:

Competition is much greater, since anyone can start an e-commerce business (at least in theory).
There are still many consumers who are reluctant to buy without seeing the product and who do not trust online payments.
Shipping costs are expensive when the volume of business is small, and this is a big disadvantage for small businesses.
Customer loyalty is much more difficult and requires a professional strategy.
Promoting an online store requires more personal work than promoting a store on the street.
The security of the site can give many headaches to the employer.
Not all the products that can be sold online are equally profitable, and you have to value the marketing strategy very well.
Consumers want to have it all: the best price, the best service and personalized attention. Competing in these terms is increasingly complicated for small businesses versus large ones.

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