e-Commerce, its types, merits and demerits


Electronic commerce or e-Commerce provides the possibilities for individuals and companies to buy and sell products over the internet. It means any person or firm can make their transaction over their computer, smartphone, or tablet simply by e-mail- order. The standard definition of e-commerce refers that any commercial transaction which occurs over the internet.

– Examples of e-Commerce

Online stores like Daraz, Amazon, Olx, Shopify, eBay, Quicker and flip kart, are well-known examples of e-commerce websites. For more understanding when you log into your Daraz or Amazon and purchase a pen, this is an example of it. Here you interact with the seller to exchange text, pictures, and addresses for delivery.

– Types 

There are four essential types of e-commerce that include Business to Business (B2B), Business to Consumer (B2C), Consumer to Consumer(C2C), and Consumer to Business (C2B).

Every coin has two sides and similarly, there are a few merits and de-merits of e-commerce business that we are discussing below.

– Merits

  • It provides buyers and sellers reach all over the world without any geographical barrier. Here they can interact in the virtual world despite any problem of location.
  • It lowers the transactional cost. It removes many fixed costs in different shops. It provides companies to enjoy a higher margin of profit.
  • Quick delivery of goods with not that many efforts satisfy the consumers.
  • There is no time limit on e-commerce. The consumer can make their transaction 24×7.
  • It eliminates intermediaries, businesses, and consumers can be in touch.

– Demerits 

  • Starting business e-commerce quite expensive. The start-up cost, hardware, and software set up, employees training cost, maintenance these expenses discourage the entrepreneurs.
  • Interpersonal relationships are very crucial elements for many brands and products but there is a lack of interpersonal relationships.
  • It involves the personal information of customers during transactions, such as ID cards and credit cards. So there is a big security issue.
  • Dissatisfaction and unhappiness of customers are other concerns on e-commerce. Mix up, delivery, shipment having many problems in their operations.

By Uzma Saleem

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