THE ADVANTAGES AND LIMITATIONS OF E-COMMERCE TO BOTH CUSTOMERS & BUSINESSES

Abstract

One of the major new trends affecting the business world, the consumers and the economy is the emergence of e-commerce. In this paper, we will analyze both its advantages and limitations, clarifying the future impacts of this rapidly growing phenomenon. We will clarify the advantages that e-commerce helps businesses achieve, such as increasing their customers, penetrating new markets, reducing financial costs as well as enhancing customer satisfaction levels and retention rates. We will also showcase the various advantages that e-commerce provides customers such as the grater accessibility to a wider variety of products from numerous vendors, enhanced connivance in the shopping experience, as well as grater delight due the personalization features that the digital provides. Finally, we will examine the limitations that e-commerce businesses have that could limit their rapid growth. Such limitations include security and privacy issues as well as the lack of experience and proper infrastructure. This study will examine previous literature to provide a consolidated list of the advantages and limitations that e-commerce has resulted in, for both consumers and businesses.