We are sure that all users reading this article are aware of how important the Internet is in their life. The global network has opened up for people not only a number of cognitive opportunities but also brought communication between users to a whole new level! Therefore, it was not news for anyone that the Internet began to be used for online business.
Currently, almost every serious and diligent person is able to earn with the help of the World Wide Web. “How?” - Some will be surprised. The answer is simple - using e-commerce!
The concept of e-commerce and its main components
IT Support Derby experts think that E-commerce is a very broad concept and includes many categories, which we will definitely discuss later. If we give the most general interpretation of this term, we can say this is a system of economic relations that are carried out using the Internet. In the narrow sense, e-commerce is online entrepreneurship.
E-commerce includes the following global categories:
Online trading
Electronic data exchange (as in the modern world one of the most valuable resources is information)
Electronic banking and insurance services
Money transfers and electronic cash
Electronic marketing (systems for collecting user data, electronic catalogs, directories, bulletin boards)
This can be a regular information site with basic information about the organization, services, answers to frequently asked questions, contact information. Or it can be a full-fledged online store.
According to IT Support Derby, it all depends on the specifics of the organization, its scope, and goals. Also, this direction is an excellent chance for individual entrepreneurs who have decided to try themselves as network businessmen.
In the modern world, more and more processes are becoming automated; therefore, obviously, this area of Internet business will continue to successfully develop. Tell us more about the advantages and disadvantages of network commerce.
Advantages:
The main advantages listed by IT Services Nottingham, associated with e-commerce are the following:
1) The main advantage is its ability to reach the global market, without necessarily implying large financial investments and costs. The limitations of this type of trade are not determined geographically. This allows consumers to make a global choice, obtain the necessary information and compare offers from all potential suppliers regardless of their location.
2) Through direct communication with the end user, online entrepreneurship reduces the chain of intermediaries, sometimes even completely eliminating them. This creates a direct channel between the manufacturer or service provider and the end user, which allows us to offer products and services that meet the individual preferences of the target market.
3) E-commerce allows suppliers to be closer to their customers, which leads to increased productivity and competitiveness for companies. As a result, the consumer receives an improvement in the quality of service, which leads to greater closeness, as well as more effective sales support before and after. Thanks to these new forms of e-commerce, consumers now have virtual stores that are open 24 hours a day.
4) Cost reduction is another very important advantage usually associated with electronic commerce. The simpler and more convenient a particular business process is, the more likely it is to succeed. This leads to a significant reduction in transaction costs and, of course, prices charged to customers.
Disadvantages:
The main disadvantages listed by IT Services Derby, associated with e-commerce are the following:
1) Heavy reliance on information and communication technology. This issue is particularly relevant for the Russian market. Not all distant regions have high-speed Internet, which would contribute to the development of online commerce;
2) Lack of legislation that properly regulates new e-commerce activities at both the national and international levels. This also includes a high percentage of fraud in the field of electronic commerce and the lack of effective methods to combat it.
3) Not all consumers are prone to electronic commerce. For many customers, the ability to “feel” and visually assess a product is a key factor when purchasing certain products. The inability to fully assess the quality of the item being acquired is the main factor hindering the development of e-commerce.
4) The loss by users of privacy and insecurity when conducting online transactions. With the development of security technology, the risk of this factor is significantly reduced. However, losing your money when paying via the Internet is much easier than losing it, handing it personally to the seller in any store.
5) The threat of problems with the delivery of goods, registration of return, etc.