Faster shopping for customers
For customers, e-commerce makes it possible to shop from anywhere at any time.
Thus, buyers can get the products they want and need faster. They are not limited by the opening hours of a traditional store.
In addition, shipping updates make fast delivery available to customers. They also greatly decrease the time it takes to deliver orders (think Amazon Prime Now, for example).
Businesses can easily reach new customers
E-commerce also makes it easier for businesses to reach new customers around the world.
An e-commerce site is not tied to a single geographic location. Instead, it is open and accessible to all customers who visit it online.
On the other hand, brands have the opportunity to connect with large, relevant audiences who are in a ready-to-buy state of mind. This is possible especially through social media advertising.
Reduced operating costs
Furthermore, e-commerce retailers can open stores with minimal operating costs. This is because they don’t need a physical storefront (and employees to staff it).
As sales grow, brands can easily expand their operations. Also, they don’t need to make major real estate investments or hire a large workforce. This means higher margins overall.
Personalized experiences
Through automation and the use of data, companies can provide highly personalized online experiences to their e-commerce customers.
Disadvantages of e-commerce
Limited customer interaction
Without being face-to-face, it can be more difficult to understand the wants, needs and concerns of e-commerce customers.
There are still ways to gather this data (survey data, customer service interactions, etc.). However, this requires a bit more work than talking with shoppers in person on a daily basis.
Technology outages can impact the ability to sell
If a company’s e-commerce site is slow, down or unavailable to its customers, it means no sales will be possible.
Site outages and technology failures can damage customer relationships and negatively impact the company’s bottom line.
No opportunity to test or trial.
For shoppers who want to see and touch the product (especially in physical products like clothing, shoes and beauty products), the e-commerce experience can be limited.
However, with the help of video, product images and even virtual reality technology, companies are finding new ways to overcome this aspect of the online shopping experience.
