1.

Identify and explain the advantages and disadvantages of E-Commerce on E-tailing, E-Advertising,
and E-Marketing.
Advantage of E-tailing (Electronic Retailing)
Cost – The price comparison section allows consumers to quickly compare prices from a number of
different e-tailers offering the same product/services such that consumer can compare different prices and
pick the best option.

Access (no physical location) – The consumer does not have to travel or go anywhere to see the
products/services of online retailers.

Inventory – Larger number and variety of inventory, both products and services can be placed online
without worrying about limited space and product placement on shelves.

Flexible time – From the comfort of one’s home, individuals can access the E-tailing sites 24/7 and even
shop in the middle of the night.
Disadvantages

Cost for website maintenance – Having an online retailing business is an added cost including
maintenance, updates, server fees and other such fees.

Fulfillment problems – Slow delivery time is the concern mentioned by most online shoppers. Even
though payments are made right away, the product takes approximately 5-7 days to reach the customer.

Payment and security concerns – With major problems like credit card frauds and scams, people are
worried that their private information will be used and abused if it is given online.

Technological issues – Some entrepreneurs feel helpless, as they have to be dependent on others to run
their online retailing sites. They feel technologically behind and not able to run the company like they run
their retail stores.
E-Advertising
Advantages

Large-capacity information: Capacity to provide information on most Internet companies is unrestricted.

Businesses or advertising agencies can provide the equivalent of thousands of pages of advertising
information and instructions, without having to worry every minute of the second increase in the
expensive traditional media advertising costs.
Strong interaction with sensory
As virtual reality and other new technologies to online advertising, immerse experience for customers
such as goods or services, and to book online, trading and settlement will greatly enhance the
effectiveness of online advertising.
Real-time and long-lasting unity:
companies can make changes at any time according to need advertising information, 24 hour warehouse
industry can adjust product prices, product information, you can instantly get the latest product
information dissemination to consumers and online media can also be long-term preservation advertising
information.
Non-compulsory transfer information:
The online advertising belongs on-demand advertising, newspaper classified ads with nature not need to
completely view, which can be freely inquiries will focus on looking for information presented to you,
thus saving time and avoiding ineffective passive attention.
Disadvantages
Network technology to filter the ads:
there have been some network software and tools will plant a report as a network of cultural dregs filter
out.
Technical Viewing Problems
Website downtime, lags in website or video loading and browser complications can reduce the number of
times consumers see online advertisements and how well they see them. When technical issues occur,
companies lose the opportunity to broadcast advertisements for their products and services and may lose
potential sales
Customers Ignore Ads
where consumers can avoid clicking banner advertisements, bypass ads in online videos they watch and
close pop-up advertisements as soon as they come up on their screens. Customers are in control of which
advertising messages they want to click and respond to.
E-Marketing
Disadvantages
The main disadvantage for consumers is the risk of burglary, fake accounts, and hackers, among others,
for direct payment to credit card pre-delivery consignment exposed to any of the types mentioned above
of fraud.
Higher transparency pricing and increased price competition.
Dependability technology
Maintenance costs due to constantly evolving environment.
Advantages
Convenience: It can help companies do marketing 7 days a week and 24 a day. The time restrictions are
nonexistent, as web marketing empowers conduct marketing 24 hours a day and even on holidays and
weekends. This significantly increases sales and profit.

Innovation: The Internet presents fresh opportunities for new products or markets.

Marketing research: The internet/intranet can track customer behavior and how staff delivers services.

Improve Service: The company website can include interactive queries of containing stock availability or
customer service questions.

2. Explain the impact of E-Commerce on Direct Marketing, Organization, Manufacturing, Finance and
Supply Chain Management

Direct Marketing
The integration of electronic commerce and marketing will bring a renaissance in marketing function.
* Product promotion: Electronic commerce enhances promotions of products and services through direct,
information-rich and interacting contact with customers.
* Direct saving: The cost of delivering information to customers over the internet results in substantial
savings to senders.
* Customer Service: Customer service can be greatly enhanced by enabling customers to find detailed
information online.
* Brand Image: Newcomers can establish brand or corporate images very quickly through net and
affordable cost.
Organization
Manufacturing
With the rise of technology and the internet, we have seen the manufacturing industry change from
manual labour to automation to keep up with the modern world. ECommerce has changed the retail
industry, and manufacturers are starting to see the benefits and explore how they can benefit from
eCommerce. By focusing on the end result instead of the start, manufacturers can be more efficient and
productive.

Improved efficiency
* Online catalogues cut out the costly printing costs
* Save time in maintaining and updating online catalogues, cross-checking data and manual data entry

Increased revenue
* Online stores open up new opportunities to reach new customers as well as new geographic regions
* Automation helps take relief off the sales team and expands office hours. Manufacturers can sell 24/7
while pursuing other revenue avenues.

More customers
* A solid eCommerce and online platform can help increase brand awareness
* Digital channels allow better use of customer data and the creation of personalized experiences

Business Growth
* Digital commerce will allow businesses to innovate in different ways and in different departments
within the business.
* Easy to scale to new verticals, markets and locations

FINANCE
It has been transformational in how e-commerce impacts banking. Trips to a physical bank branch are no
longer necessary by utilizing the vast array of online services offered by major banks. This includes the
basics of direct deposits of paychecks, online bill paying, and many other convenient banking services
* Increased Fintech Product Offerings One powerful application of e-commerce is to provide financial
services that extend the things offered by banks.

SUPPLY CHAIN MANAGEMENT

The growth of e-commerce has impacted supply chain management in several ways. First, it has increased
the demand for just-in-time delivery, putting pressure on suppliers to deliver products more quickly and
efficiently.
Second, it has made it easier for consumers in comparison to shopping offline, leading to increased price
competition among suppliers. And finally, it has created new opportunities for companies to reach
consumers in new and innovative ways. Thanks to e-commerce, businesses can now sell products directly
to consumers without going through traditional retail channels.
* E-Commerce Directly Influences Supply Chain Management
* E-Commerce has caused the supply chain to become more flexible and efficient.
* E-commerce has a dual function in supply chain management

3. Discuss the possible threats to present day E-Commerce and its solution

* Cyber & Data Security

When it comes to eCommerce, one of the biggest challenges faced is security breaches. There is a lot of
information/data that is involved while dealing with eCommerce and a technical issue with data can cause
severe damage to the retailer’s daily operations as well as brand image.
Solution:
Be vigilant and always back up your data. Post that, you can install security plugins onto your website to
prevent it from getting hacked. There are several plugins out there, pick one that works best for your
eCommerce website.

* Online Identity Verification

When a shopper visits an eCommerce site, how would the retailer know if the person is who they say they
are? Is the shopper entering accurate information? Is the shopper genuinely interested in the eCommerce
products
Solution:
Invest in online identity verification. Some examples include biometrics, AI, single sign on, one time
password, two-factor authentication and so on.

* Converting Shoppers into Paying Customers

One of the biggest ecommerce challenges is to convert visitors into paying customers. An eCommerce
website might have a lot of traffic, a lot of clicks and impressions but they aren’t making the sales they
anticipated.
Solution:
The first and foremost would be to understand why your shoppers aren’t converting. Always think from a
shopper’s perspective and see if you are doing everything possible to make them paying customers.