Discuss the advantages and

disadvantages of online
shopping

Student name: LEI ERYA, Ary

Student number: 20090747
 Content

 Introduction to online shopping

 Advantages and disadvantages of e-shopping

 Conclusion

 References
 Introduction
Online
shopping
 China the Largest ecommerce markets in the world
In 2019, E-Commerce represented $740 billion
led by Alibaba group E.g: Taobao

 America the second largest ecommerce market

Source: The Global Ecommerce Playbook
In 2019, E-commerce represented $ 561 billion
led by Amazon and eBay

(As cited in Madlberger, 2003

 Introduction
 A strongly growing domain No signs of decline

From 2014 to 2020:

The continuation of the upward trend
E-commerce sales ratio 300%
2021: $ 4.878 billion

The fastest growing retail market

(As cited in Frederick, 2011)

 Introduction
Online shopping
 Customers prefer shopping online
Online shopping > In store
shopping Source: National Retail Federation

58.4 millions > 51.6

millions
 Biggest increase among young internet users Getting
higher year
by year

25-54 years
Technological
development :
- Mobile Phone
Source: Eurostat (online data code: isoc_ec_ibuy) - Notebook
- Double-edged sword
(As cited in Md and Hai ling, 2012)
 What are the benefits of online shopping ?

Convenienc
e interviewees
- 58% Agree convenience
- In-store shop: Driving + Walking + Parking + Lining up
During normal business hours
Limited to products offered by local retailers
Time + Money Source: Global Online Consumer
- Online shopping: A one click affair Speed Report, KPMG International, 2017

24 hours a day
Time advantage +
Order products from around the world
products without
limitations

(As cited in Miller and Washington, 2016)

 What are the benefits of online shopping ?

Better price

 46% interviewees Agree better price

 Cost saving: increasing gas prices + parking fees + free shipping

 Easy comparison: From store to store Bottom price

 Deep discounts, rewards, and cash back in your pocket
E.g: Taobao- Double November + Double December

Free ship-to-store options + lower prices

Source: Global Online Consumer
Large cost saving Report, KPMG International, 2017

(As cited in Md and Hai ling, 2012)

 What are the weaknesses of online shopping ?

Risk of security

- Hackers: Sensitive information stolen e.g: Identity + bank

information

- Risk of online fraud: Phishing sites paid but no products

Low quality, opened or refurbished item

• Large harassing phone calls

• Financial loss Is your credit
safe?

(As cited in Md and Hai ling, 2012)

 What are the weaknesses of online shopping ?
Inferior products

 Can’t see or touch in actuality

 56% interviewees want to touch + try items
 In regular store: see + try + visually inspect
 In online store: can’t visually inspect + see + try
Standard size not standard

• Not including Source: Global Online Consumer Report,

KPMG International, 2017
freightage
• Not refund mailing cost

Costs go up (As cited in Miller and Washington, 2016)

 Conclusion

 Supporting line shopping Convenience + Better

price
 Suggestions:

- Government: Tight regulations on online merchants

Information platform
 References
Bigné‐Alcañiz, E., Ruiz‐Mafé, C., Aldás‐Manzano, J., & Sanz‐Blas, S. (2008). Influence of online
shopping information dependency and innovativeness on internet shopping
adoption. Online Information Review,32(5), 648-667. doi:10.1108/14684520810914025

Frederick, D. H. (2011). Online Shopping – a New Shopping Trend (an Opinion

tudy). Indian Journal of Applied Research, 3(11), 60-62.doi:10.15373/2249555x/nov2013/18

Madlberger, M. (n.d.). Online Shopping and Catalog Shopping. Web Technologies for Commerce and
Services
Online. doi:10.4018/9781599048222.ch010

Miller, R. K., & Washington, K. D. (2016). Consumer behavior 2017-2018. Loganville, GA: Richard K Miller &
Associates.