Question

What does e-Commerce mean to you?

How does this style of business differ from past practices?

What are the advantages and disadvantages of e-Commerce?

Do you feel this to be a profitable mode for modern-day business?

Answer 1

1. An E-commerce business can be considered as being different more earlier, or traditional methods of doing business in the past, even online business in the sense that the entire process from the moment an order is placed, the payment mode, till the product reaches the customer and how a company performs such functions is based over the use of internet. We can say that earlier businesses use a model which preferred physical stores over an online catalog due to a number of reasons and technological capabilities. E-commerce has allowed for a wider range of products sold, services render over a much larger area with the ease of being able to access everything in a much more controlled manner.

2. E-commerce has the advantage when it comes to speed, accessibility as well as connectivity. The fact is that it is not only used in B2C but B2B transactions just as well. It is not dependent on the ability of large companies being able to stick the required inventory anymore, nor is it dependant on a physical location which can act as a storefront, rather, it makes use of the technology in order to provide the customers with the services they require with the ease of being able to access it wherever they want.

3. Yes, I do believe that E-commerce is a profitable option for most businesses in the current day and age and the reasons are as follows:-

1. Larger audience as well as a larger area of adoption in the market.

2. Promotions become easier to run and manage.

3. Limitations such as the need for a physical store, a large inventory increases capabilities and reduces liability such as a stockout,

4. Reduces day to day operational cost considerably if the strategic plan is catered to the company's capabilities and approach.