E-Commerce - A Boon or Bane

Introductions

The growth of computers has changed the life of every person in this world. Computer networking has become an integral part of our life. The technology has changed the way we live and work. The magnificent developments of computer technology have forced the people to use them. Computers are being used in every aspect of our life. We carry out our bank operations, mail services, and reservations of tickets through this technology. Electronics commerce is one of the important operations of computer networking. Generally, there is a discussions that whether e-commerce is a boon or bane. In this article, we shall see the detail to find the answer.

Definition of Electronic Commerce

Electronic commerce or e-commerce is used for buying, selling and marketing various products or services over computer networks. It can also be referred to as the conduct of business commercial communication and management through electronic methods such as electronic data interchange (EDI) and automated data collection systems.

Initially, electronic commerce meant the facilitation of business transaction electronically in which purchase order or invoice were sent electronically. The contracts were passed from one location to others through computer network. But slowly and steadily, the use of electronics commerce increased tremendously. Now purchasing, selling, payments and other commercial transaction are done electronically. The reliable availability of World Wide Web via secured servers which encrypt confidential data for protection has enhanced scope of e-commerce.

Advantages of E-commerce - A Boon

Any organization small or big has to use some form or other of e-commerce for their commercial ventures. In the existing competitive market, it has become essential for all organization to exploit the benefits of e-commerce. There are several reasons for the success of e-commerce venture in commercial transactions.


Customers Satisfactions – Company can offer their product and services to different customers at a very competitive prices.
Ease of operations- It is comfortable for both the sellers and buyers to have ease of operations in a commercial transactions.
Brand creation – Companies can create their websites which are available on 24X7 bases. The customers can access the information as and when required. With the help of web-site, it is easier to create brand and consolidate on successive growth.
Personalized services – The database for customers’ information can be easily developed by the companies. This helps in achieving personalized services to customers.
Developing progressive business model – The availability of records for sell, purchase and storage provide immense opportunities for the companies to develop a business model. The model can be easily improved depending upon dynamic data to suit the market requirements.
Value additions – The availability of stores on electronic media provide limited number of core competencies. It is easy and comfortable to do value additions in whole transactions.

Disadvantages of E-commerce - A Bane

Although, e-commerce is very advantageous and profitable proposition for any companies as well as customers, there are few disadvantages too if proper care in the implementation stage is not taken. The major issues can be summarized as follow-

Lack of understanding of customers – Because, the customers are not coming in view of sellers, there could be a situation where lack of understanding arise.
Inability to predict environment reactions – It is difficult to predict environment reactions. The competitors can create their brands in a very different way. As the available medium is fast, competitor can make changes fast which could be more effective.
Lack of coordination and management – As there are few core competencies and they have to be integrated and coordinated properly to achieve the advantages. The lack of interest and knowledge may create lack of coordination. This throws a challenge for managing activities.
Failure to obtain senior management commitments – The lack of clear understanding of technology by senior management results in poor appreciation of necessity of resources. This results in lack of commitments.
Unreliable medium – The success and availability of computer network depends upon many media in between. The weakest link of the whole network may become the bottleneck of the whole e-commerce operation. This generates unreliable situations.

Scope of e-commerce

There is a limitation when we decide about the scope of e-commerce. All conventional products available in the market can not be found suitable for online transactions. Many companies who were dealing with digital products like electronic devices, information storage, music, movies, e-learning, education, communication, software, photography and financial transaction found e-commerce suitable. However slowly all other companies are using e-commerce to enhance their productivity.

E-commerce can be used for non-digital products especially which have a high value-to weight ratio. They can also be used to reach to remote locations. They have a capability to cross the national boarder. People are in a position to conduct various economical transactions on network with the help of e-commerce.

Credits, Debit, Mutual Funds, cash, on-line cards are few of the working models in the market. The technology is still emerging. The scope is ever expanding. There are many online companies which are doing online transactions. Few important ones are – eBay, amazon.com, goggle, lulu.com, yahoo, paypal etc. Almost everyday, a new company is added in this segment.

Limitations of e-commerce

People are used to normal conventional way of transactions. The utilization of e-commerce has been slow. People are generally fearful to carry out virtual transactions. There are various reasons for this.

Security concerns – Many people are afraid to use credit card because of fear of fraud and misuse.
Absence of physical transactions – The transaction on network is not taking place physically. There is no passbook which is updated on regular basis on the transaction at bank ATM.
Poor Access – There is a sever scarcity of access of networking to common household and smaller cities or towns. This results in limited access of e-commerce of various products.
Social Changes – The e-commerce is a new medium for many people. People still feel comfortable in talking to sales person before carrying out purchases. This facility is not available in online shopping.


Future Awaits E-commerce

21st century is going to be the century for the people who embrace technology to enhance their effectiveness and efficiency. E-commerce is very integral part of our growth. The spread of call centers and BPOs, now KPOs and many other process outsourcing are the indication of its prevalence. It is important that we consider e-commerce as boon and move accordingly so that we are not caught unaware. It is a challenge for all of us and at the same time, it throws immense opportunities for our growth and better living. E-commerce is a boon.