The Pros And Disadvantages Of E-Commerce - 1286 Words

Why risk the possible forgone costs of attempting to find items at a single store when anyone can browse the world-wide web with millions of options right at their fingertips? Recent consumer trends reveal a large shift from the number of consumers shopping in physical stores to those utilizing online storefronts and virtual market places. Quite frankly, visiting brick-and-mortar stores is becoming the old-fashion style of retail shopping. E-commerce giants, Amazon for example, make it incredibly difficult for small mom and pop shops and even billion dollar corporations such as Walmart to function at their highest possible levels. However, there are flaws in a world comprised solely of virtual marketplaces that will allow various types of†¦show more content†¦Indeed, there are many benefits that e-commerce can offer over the traditional store. The variety of items, ease and reduced cost of shipping, ability to quickly compare prices, and access to reviews of the products bef ore purchasing are all aspects that increase the demand and satisfaction from e-commerce. Nisar and Prabhakar extensively researched factors that determine satisfaction from these virtual markets and found: Evidently, the Internet has resulted in a fundamental shift in retailing practice, creating a shift in both consumer and business behavior, which has been compared to that of the Industrial Revolution. †¦ Further, the relationship between customer satisfaction and consumer spending is positive, where higher e-satisfaction results in more spending in e-commerce. (Nisar and Prabhakar, 135) This inclination towards online shopping is taking a toll on physical marketplaces. All the e-commerce benefits to the consumer outweigh the desire to travel to a store and purchase their items. A study shows that â€Å"E-commerce was estimated to have a share of 8.7% of total global retail sales in 2016, which was expected to increase to 14.6% in 2020† (Hagberg et al. 265). Sales almost doubling in four years is an impressive and scary prediction. Already many book stores, such as Barnes and Noble, have been forced to close the majority of their stores because of the difficulty to compete with companies such as Amazon. This is a single andShow MoreRelatedUsing The Latest Trends Of Business Processes1142 Words   |  5 Pagesenumerate the benefits and disadvantages of adopting the latest trends, especially advancements in technology, in small-scale businesses. A brief summary of a scenario involving non-fictional characters is included to depict similar real-world conundrums faced by entrepreneurs. This paper first illustrates the benefits of incorporating the aforementioned trends into small-scale businesses, and then moves on to list and to discuss its disadvantages. Lastly, the paper weighs the pros and cons of using theRead MoreBackground. In The Fast Changing And Increasingly Connected1321 Words   |  6 Pagesas Alibaba and Amazon, rely on the technological innovations and advancements to build their business models and capitalize on them (Burinskiene, 2013). Alibaba was founded in 1999 by a group of 18 people led by Jack Ma. The company provides an e-commerce platform for global sourcing and trading of millions of products in more than 40 categories in more than 190 countries (Alibaba, n. d.). At the end of 2016, the company reported a revenue of $7.669 billion, an increase of 54% year-over-year (AlibabaRead MoreBusiness And Consumer E Commerce873 Words   |  4 PagesWhat is Business to Consumer e-Commerce? Business to Consumer e-Commerce, also referred to as B2C, is the process of selling goods and services over the Internet rather than having a traditional brick and mortar outlet to sell such products. 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(McClure 2000) BothRead MoreCase 7,81001 Words   |  5 PagesWhat are the advantages and disadvantages of the growth strategies pursued by Ahold, Carrefour, and Wal-Mart? Ahold Global Expansion (1970’s—Spain, Portugal, United States; 1990’s—Central Europe, Latin America, Asia) Pro: High penetration in U.S. market. Con: Low penetration in its mother continent. The profit margin for Ahold’s U.S. division is 5.7 percent, while the profit margin for the European division is only 3.9 percent of sales. Pro: High international experienceRead MoreWeek 4 Workshop Questions Essay757 Words   |  4 Pagesthat is a hybrid (i.e., they have a traditional brick-and-mortar business plus a presence on the Web). ASOS vs Westfield (a) Explain the pros and cons of dealing with each type of company. An example of a company that is purely Web based would be ASOS and an example of a competing company that is a hybrid would be Westfield. One of the pros of ASOS being a click-only company is that they will have less overhead costs. This is because they do not need a building and thus, no propertyRead MoreE Commerce : A Type Of Business1328 Words   |  6 PagesE-COMMERCE INTRODUCTION: Electronic Commerce, usually addressed as E-commerce can be described as a type of business used for commercial transactions which involves transfer of information across the internet. It helps people in electronically exchanging goods and services with ease as there is no time or distance barrier. Types of E-commerce: (i) Business to Business (B2B): Firms directly deal with each other, (i.e.,) manufactures sell their goods to Distributers. Here, the pricing will vary