1. EC2.02 Positive & Negative Effects of the Internet on Businesses 1
Advantages and Disadvantages ofAdvantages and Disadvantages of
E-CommerceE-Commerce

2. EC2.02 Positive & Negative Effects of the Internet on Businesses2
Advantages of E-commerce to
Business
 Can display
information, pictures,
and prices of products
or services without
spending a fortune on
colorful
advertisements.
 In some cases, makes
order processing an
easier task than
before.
 Can reach
worldwide market
with unlimited
volume of
customers.
 Can operate on
decreased, little, or
even no overhead.

3. EC2.02 Positive & Negative Effects of the Internet on Businesses3
Disadvantages of E-
commerce to Business
 Technology problems can cause your site
not to operate properly, hence causing you
to loose customers and sales.
 The competition is so vast on the web.
There can be several other web sites where
a customer can go and purchase the same
product you are offering.
 Online payment security. Getting people
to visit your site is one thing and getting
them to have confidence of making online
payment can be a big nightmare.

4. EC2.02 Positive & Negative Effects of the Internet on Businesses4
Advantages to Customer
 Convenience. Customers are able to shop any
time of the day (24/7), from the privacy of their
homes, office, etc. The E-commerce has been
nicknamed “the mall that never sleeps.”
 Variety. Basically customers can shop for any item
they can think of. From, airline tickets, books,
clothing, medication, etc
 Hassle Free. Customers can shop online without
physical contact with sales people. No fighting the
congestion of shopping malls or moving from one
store to another looking for product or service to
another.

5. EC2.02 Positive & Negative Effects of the Internet on Businesses5
Disadvantages toDisadvantages to
CustomerCustomer
 Privacy issues. One of the main reasons why
people don’t purchase online is because of security
issues. For instance personal Credit/Debit card
information's are very sensitive on making an online
payment. Such scams, frauds, and rip-offs are of
big concern on the web.
 Customer Service. Consumers are not always
satisfied with their purchases, and when buying
online they often don’t get the answers they need in
a timely manner they demand.

6. EC2.02 Positive & Negative Effects of the Internet on Businesses6
Retailers capitalizing on E-
Commerce
 Williams-Sonoma
 Store for cooks. Online
shopping, interactive
gift registry, and gift
ideas.
 Restoration Hardware
 Online store review
Furniture, house wares,
gift registry
 Pier 1 Imports
 Furniture, house wares,
gift registry

7. EC2.02 Positive & Negative Effects of the Internet on Businesses7
“Electronic Commerce”

CHANGING THE WAY PEOPLE
SHOP
InterCart
Shopping Cart
Digital
Storefronts
Pro
Digital
Storefronts
Banner
Programs
Online
Merchant
Accounts
Digital
Storefronts
Partner
Programs

8. EC2.02 Positive & Negative Effects of the Internet on Businesses8
Resources
 Pier 1 Imports
http://www.pier1.com/default.aspx
 Restoration Hardware
http://www.rensup.com/
 Williams-Sonoma
http://ww5.williams-sonoma.com/