Here's the formal definition: "Electronic commerce or e-commerce is the buying and selling of goods and services to Internet users". Everything is hosted on servers, and serviced by hosting companies. This type of online business typically involves an e-commerce site, a web site that has a product catalog, a shopping cart, and a checkout system to handle shipping calculations, and processes credit card payments. In addition, an e-commerce site is commonly comprised of a graphic user interface, to display information and a database to store the product and transaction data. You may already have some idea about "what e-commerce" is. For the purpose of this web site, let's just focus on the form of e-commerce that sells products to Internet users only; because it is popular, and it needs more in depth discussion.
Pros and Cons of e-commerce for sellers:
• Takes orders 24/7, thus maximizing sales opportunities
• Distributes product information to customers, more rapidly
• Carries a larger inventory by leveraging drop shipping services
• Tracks customer buying pattern data, to improve the seller's business
• Saves costs and improves efficiency
• Might incur lost revenue due to credit card fraud
• Offers more competitive prices due to lower overhead
• Takes a large number of orders simultaneously
• Must cope with customer's security and privacy issues
• Expands the market with new customers and sales potentials
Pros and Cons of e-commerce for buyers:
• Saves time by not having to go to the local stores
• Products not available in stores can be found, online
• Purchases can be made from wish lists
• Buyers can avoid holiday crowds
• Buyers can find products online, more easily
• Buyers can shop when local stores are closed
• Gift wrapping can be avoided
• Concerns with identity, privacy and credit card security.
• Buyers may be able to find better prices, online
• Buyers can have gifts sent directly to recipients
• Purchasers can earn loyalty points
• Price comparisons are much easier, online
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