The Advantages of Electronic Commerce
1. Electronic commerce is quite simple. It can help increase profits and sales. Also, it can help
decrease costs.
2. Even a small firm could attract potential customers if it advertised well on the Internet.
3. A firm can use electronic commerce to reach small group of customers that are
geographically scattered.
4. Businesses can use electronic commerce to identify new suppliers and business partners.
5. Electronic commerce makes negotiating price and delivery terms easier as Internet can help
companies efficiently obtain bid information.
6. Electronic commerce increases the speed and accuracy and reduces transaction costs.
7. Electronic commerce provides buyers with a wider range of choices than traditional
commerce.
8. Electronic commerce provides buyers with an easy way to customize the level of detail in the
information they obtain about purchase.
9. As to digital products, electronic commerce could reduce time and increase sales.
10. Electronic payments of tax refunds, public retirement and so on cost less to issue and arrive
securely and quickly. And it is easy for audit and monitor.
11. Electronic commerce allows people to telecommute.
The Disadvantages of Electronic Commerce
1. Some business processes might never lend themselves to electronic commerce such as
perishable food and high cost, unique items.
2. Some products and services require that a critical mass of potential buyers be equipped and
willing to buy through the Internet.
3. The costs and benefits are often hard to quantify or predict with any degree of accuracy for
electronic commerce.
4. It is difficult to integrate existing database and transaction-processing software designed for
traditional commerce into the software that enables electronic commerce.
5. The legal environment in which electronic commerce is conducted is full of unclear and
conflicting laws.
The Characteristics of Electronic Commerce
1. The Internet and electronic technology is the basic of electronic commerce. A little change or
development may cause a huge different.
2. Electronic commerce overcomes the barrier of distance and time.
3. Electronic commerce is a two-way process and becomes more and more personality
4. Electronic commerce combines the virtue and real world.
5. Electron commerce is effective and convenient.