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Advantages & Disadvantages of Electronic Commerce

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Advantages & Disadvantages of Electronic Commerce essay
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History In the 1970s, the term electronic commerce, referred to electronic data exchange for sending business documents such as purchase orders and voices electronically. Later, with the development of this industry, the term of electronic commerce is used to the business of goods and services via the web. When the first World Wide Web was introduced in 1994 as comprehensive, many well-known researchers have been predicted this type of business “the web-based business” will become soon important in the world economy, but it took four years that HTTP based protocols should be widely available to users. The first electronic commerce created in the USA and some European countries in 1998. These types of business are formed with beginner and unprofessional websites and it has been expanded rapidly.

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Electronic commerce was spread rapidly in most cities in America, Europe, and East Asia in 2005. Some say dates of electronic commerce return to prior of the Internet, but due to the costs of this style of business, only business and financial institutions and corporations could use it. But with the widespread use of the Internet to all of the people and change the structure of electronic commerce, this kind of business from the specific business case for a particular group out and became the industrial form. Frameworks Electronic commerce framework is comprised of three levels that this framework is needed to for successful electronic commerce.

1. Infrastructure The first part of the framework for electronic commerce is including hardware, software, databases, and communications. It is used in term of World Wide Web on the Internet or other message switching methods on the Internet or other telecommunication networks.

2. Services The second part of the framework includes a wide range of services that provide the ability to find and present information and are including the search for trading partners, negotiation, and agreements

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3. Products and Structures This section of the electronic commerce frameworks consist forecasts and direct provision of goods, services, and trade-related information to customers and business partners, cooperation and sharing of information within and outside the organization and organizing of environment of electronic marketplace and chain of supply and support. Advantages & Disadvantages The invention of new telecommunication networks and modern online devices has resulted in a new business. In fact, electronic commerce has become one of the most popular activities on the web. Electronic commerce created many benefits for companies and users, however, some disadvantages and serious problems stem from this issue. We can also sell any time, night or day, 365 days a year. Even while we are resting, our users can visit our website, search our goods, services, and determine their orders. Decrease Transaction Costs If we buy from the online store, we spend low operational cost, we have a better quality of service, and we can cut the many unnecessary costs.

For example, if our goods or services downloadable, we will have transport costs completely cancel. Conduct a Business Easily In electronic commerce, we do not need physical company setups or there are not any crowds to deal with. We can buy from our house comfortable; users can easily choose goods from various procedures without moving around physically. Comparison in Prices Everyone can easily compare fees among the various websites. We can usually earn discounts on fees when compared with normal shop fees.

Disadvantages Security Security pursues to be the main problem in electronic commerce. Everyone good or bad can easily open a website, and there are many bad sites, which their aim is user’s money. Guarantee There is no guarantee for product quality. Our orders might be damaged in the post or things may look different online to what you actually receive, for example, slightly different colors and feel of clothes or the freshness of vegetables and fruits.

Social Relationships Electronic commerce allows users that buying and selling goods and services without geographic limitations but in this method, we have not any contacts and relationships with other persons and loss our social contacts. Impact Electronic commerce is a new method business that mixes all of the prior methods and transaction styles. Electronic commerce and electronic business have an impact on many districts of business, for instance, economics, marketing, computer science, finance and accounting, production and operation management, management information system, human source management, business law, and ethics. The following are some of the factors describe: Marketing The rise of information technologies and computer networks has many effects in business especially in the field of marketing. Everyone can make markets work more efficiently and they can improve their career with information management within a group. In this case, they can decrease the cost of operations and catch new markets and new opportunities for selling and transactions. Economics In the industry world, managers must encourage and conduct employees to devise plans to take advantages of new economic opportunities. Electronic commerce is creating new opportunities for the global economy, for example in the global travel and tourism industry.

Transforming from traditional business method to electronic commerce method is hard and there were many different factors for companies to adopt them with electronic commerce factors. For this work, they must use the Internet and many other online networks, because for grow and use from new economic opportunities in each industry it is necessary to be matched with new technologies.

Finance and Accounting Two decades of progress in information technology and development of its applications in the field of economic and social to form a new chapter of relations between people, institutions, companies and governments and new concepts are emerging on the literature of economic and trade. Internet as a global network, as well as prerequisite of electronic commerce, for reason flexibility, attractive, ease of use, low-cost access and ubiquity, is changing the traditional business moreover, electronic commerce had a significant impact on finance and accounting that include saving time, disinflation, increase productivity, reduce the demand for money (reduce the cost of publishing) and etc.

Production and operation management The outcomes of a manager’s work, by on-time product qualify productions and with the least cost is determined. For this purpose, the first requirement is the correct information. Electronic commerce is the best way to have the most accurate and correct information for managers because consumers transmit their demands to managers directly

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