What are the Benefits and limitations of E-Commerce?

E-Commerce is the conduct of commerce in goods and services over the Internet. It includes: consumers using the Internet to purchase goods and services online; as well as businesses selling and communicating with other businesses through the Internet

Few technologies have the many benefits e-commerce does, whether taking a small business to never before seen global proportions or opening up millions of new customer markets. E-Commerce has given many companies the right to cheer, and here are a few of the reasons why:

• Expands markets from local to global
• Reduces costs with telecommunications and physical maintenance
• Minimizes resources used for storing physical receipts
• Instant product updates, including descriptions and pricing
• 24-hour store visibility to anyone with an Internet connection
• Large portals enable large product bases, manufacturers and prices
• Search utilities far surpasses the speed used to find products through catalogs
• Encourages competition between small and large online retailers

With benefits come limitations. A few are detailed below:

• Credit Card security is a serious issue if vulnerable
• Costs involved with bandwidth and other computer and server costs
• Extensive database and technical knowledge and experience required
• Customer apprehension about online Credit Card orders
• Constantly changing technology may leave slow businesses behind
• Some customers need instant gratification, and shipment times interrupt that
• Search utilities far surpasses the speed used to find products through catalogs
• Encourages competition between small and large online retailers