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Benefits and limitations of e-commerce

Ecommerce | Admin | Updated: 2010-03-30

Benefits and limitations of e-commerce

E-commerce has revolutionized the concept of conducting business by providing equal chance to all the businesses to mark their global presence. It has also eased the customers with online shopping and easy transactions. With the introduction of e-commerce business, communication has become effortless and has also changed a lot in recent years for the better. Still, there are people who think that conventional business practices are far better then the e-commerce business. Here, we are bringing you some of the benefits and limitations of e-commerce that will make you aware of the certain aspects of this new trend of conducting business.


Expands the reach of your business to the global market :- The foremost advantage of e-commerce is that it empowers the business to reach the global market. E-commerce caters to the demands of national as well as international business simultaneously and brings your business activities out of geographical boundaries. With e-commerce, even small businesses get the access to the global market.

  • Round the clock availability :- E-commerce has abolished time restrictions on business activities because with this you can execute business transactions 24X7. The time factor significantly turns into the increment in sales as well as profits.
  • Gives freedom to make choices :- It also gives customers an opportunity to look for cheaper and better quality products. With e-commerce, consumers can search the specific product or service they require and can even find the direct manufacturer from where they can purchase products at comparatively less price. Shopping online is time saving and convenient. In addition to it, you also get to see the reviews of other consumers that will help you in making beneficial purchase decision.
  • Cost effective : - E-commerce is proved to be highly cost effective for business concerns as it cuts down the cost of marketing, processing, inventory management, customer care etc. It also reduces the burden of infrastructure required for conducting business. You can also collect and manage the information related to the customers efficiently, which in turn will assist you in developing efficient promotional strategy.


  • Technological and inherent limitations :- The technological limitations of e-commerce have restricted a large number of people from using this revolutionizing technique. The major disadvantage of e-commerce is the limitation of the Internet, as it still has not touched the lives of every individual. Lack of knowledge restricts large number of people from using the internet and understanding online transactions. Some people refuse to trust the legitimacy of online business and some are not comfortable about disclosing their personal and confidential information online. Authenticity of e-commerce businesses has always remained in question.
  • Not suitable for perishable commodities :- The biggest limitation of e-commerce is that it is not suitable for perishable goods and food items. For purchasing such items people prefer the conventional way of shopping. Along with that, the time period also plays a significant role in delivering goods to the customers. Customers may need to make lot of phone calls and e-mails for getting the products within the desired timeframe. Moreover, it becomes really troublesome to return the product or get refund in case if you are not satisfied with the product.

After evaluating the pros and cons of e-commerce, we can clearly state that the benefits of e-commerce are sufficient enough for overpowering the limitations. If apt strategies are followed and technical issues are addressed properly, you can easily build up the customers trust in your system. The present scenario of e-commerce can also be changed for good, so that it can easily adapt to the ever changing needs of the customers as well as of the world.

13 thoughts on "Benefits and limitations of e-commerce"

  • John Williams
    05 April, 2017 at 10:08 am

    Thank You For The Interesting Blog on Benefits of E-commerce


  • John Williams
    01 March, 2017 at 12:13 pm

    Thank You, Palak Jain, For the Interesting Article on Benefits and Limitations of E-commerce


  • tushargoyal
    01 December, 2016 at 9:02 am

    very good information


  • job consultants
    16 December, 2013 at 9:58 pm

    It is perfect time to make some plans for the future and it is time to be happy. I have read this post and if I could I desire to suggest you few interesting things or advice. Maybe you can write next articles referring to this article. I wish to read even more things about it!


  • pagato per scrivere
    03 August, 2013 at 12:59 pm

    Great Post


  • seo online
    03 August, 2013 at 7:18 pm

    Links created on Facebook,Twitter, Google + and Yelp, will help increase the page rank of your original website. The internet has become an essential tool for most business owners but like any other device, having it is not a guarantee for success. This is where the home inventory business is needed.


  • business cards
    23 June, 2013 at 12:15 pm

    Superb blog you have here but I was wondering if you knew of any user discussion forums that cover the same topics discussed here? I'd really like to be a part of online community where I can get advice from other knowledgeable people that share the same interest. If you have any suggestions, please let me know. Bless you!


  • Terry
    07 December, 2011 at 11:49 pm

    Nice article. Keep posting!


  • John
    05 December, 2011 at 1:14 am

    Great post, it gives me good info. Thanks for sharing.


  • Guillaume
    04 December, 2011 at 6:05 am

    Really nice blog. Your post is very interesting. Thanks for sharing.


  • Deepak
    30 November, 2011 at 8:48 am

    Thanks for the info! Your article actually helped me.


  • bad credit remortgage
    01 July, 2010 at 7:49 am

    I saw this really great post today......


  • nircqjtt
    29 June, 2010 at 12:01 am

    There's good info here. I did a search on the topic and found most people will agree with your blog.


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