BAPUJI ACADEMY

MANAGEMENT AND
RESEARCH
S H R AVA N K G
MB202541
2ND YEAR MBA
R E TA I L M A N A G E M E N T A N D E - C O M M E R C E
BENIFITS OF E-COMMERCE
1. Global Market
E-Commerce businesses enable business firms to reach out to customers all over
the world who have access to the internet.
2. Lower Transaction Cost and Higher Margin
E-Commerce business reduces the cost of business transactions substantially.
3. Quick Delivery
It increases customer satisfaction through quick delivery of goods to customer
complaints if any.
BENIFITS OF E-COMMERCE
4. Saving of Time and Effort
There is a paperless exchange of information.
5. 24×7 Working
A website is open all 24 hours, 7 days in a week, it can, thus, take orders and
keep an eye on delivery of goods and receive payments at any time.
LIMITTIONS OF E-COMMERCE
1. High Start-Up Costs
The various components of costs involved with e-Commerce are :
Connection costs to the Internet (i.e. direct link).
Hardware/Software: This includes costs of sophisticated computer, modem, routers, etc.
Set Up: This includes employee work hours involved in designing and installing a suitable website.
Maintenance: This includes costs involved in the training of employees and maintenance of Web-
pages.
LIMITATIONS OF E-COMMERCE
2. Lack of Tech Knowledge
Lack of infrastructure, competing standards, and human fear to learn new things
are other constraints in the use of e-commerce.
In many countries, peoples don’t know how to shop online or use of e-commerce.
3. High Risk
Many stories unfolded in 1999 about successful executives in established firms
leaving for an Internet start-up, only to find out that their ‘get rich’ dream with
dot.com was just a dream.
 LIMITATIONS OF E-COMMERCE
4. Training and Maintenance
Organizations require trained staff to initiate, update and maintain the Internet facilities and Web pages.
This would alleviate the need for the organizations to have adequate Internet server configuration backup and
24-hour support environment.

5. Fulfilment Problems
Tales of shipping delays, merchandise mix-ups, and Websites crashing under pressure are some of the common
problems.