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E-Commerce: Merits and Demerits A Review Paper

Conference Paper · June 2017

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 International Journal of Trend in Scientific Research and Development, Volume 1(4), ISSN: 2456-6470
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E-Commerce: Merits and Demerits

A Review Paper
Ms. Ayushi Y. Vadwala Ms. Maitri S. Vadwala

Madhuben & Bhanubhai Patel Women’s Institute Of Computer Engineer From Government Engineering
Engineering, New Vallabh Vidyanagar, Gujarat College, Dahod,Gujarat

ABSTRACT CONCEPT OF E-COMMERCE:

Over last few years the popularity of e-commerce has E-Commerce or Electronics Commerce is a
enormously increased due to its quick and easy way methodology of modern business which addresses the
of exchanging goods and global services. India will be need of business organizations, vendors and
booming ground for e-commerce business models.
customers to reduce cost and improve the quality of
The present study is conceptual and descriptive
nature. It attempts to explain the concept of goods and services while increasing the speed of
ecommerce, business models for e-commerce, merits delivery. [1][2][3]
and limitations of e-commerce. It concludes that e-
commerce offers several benefits to the various
stakeholders. However, at present time it has several E-commerce refers to paperless exchange of business
limitations, legal and technical barriers in the information using following ways. [3][4]
development of e-commerce in India which could
 Electronic Data Exchange (EDI)
fade away in years to come. Hence we should equip
ourselves to give worm welcome to e-commerce  Electronic Mail (e-mail)
which is an obvious outcome of globalization and  Electronic Bulletin Boards
technological revolution around the globe.
 Electronic Fund Transfer (EFT)
OBJECTIVES OF STUDY:  Other Network-based technologies
The paper has following objectives:
1) To explain the concept of e-Commerce. DIFFERENT TYPE OF E-COMMERCE:
2) To study the merits of e-commerce. The major different types of e-commerce are:
3) To study the demerits of e-commerce  Business-to-business (B2B)
 Business to- consumer (B2C)
REVIEW:  Business-to-government (B2G)
The present study is conceptual cum descriptive in  Consumer-to-consumer (C2C)
nature. It is based on the analysis of data. The data is  Mobile commerce (m-commerce)
availed from various journals, internet, and books.

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FEATURES MERITS OF E-COMMERCE:
E-Commerce provides following features: E-Commerce advantages can be broadly classified in
 Non-Cash Payment: E-Commerce enables use of three major categories:
credit cards, debit cards, smart Cards, electronic  Advantages to Organizations
fund transfer via bank's website and other modes of  Advantages to Consumers
electronics Payment.  Advantages to Society
 24x7 Service availability: E-commerce automates
business of enterprises and Services provided by ADVANTAGES TO ORGANIZATIONS
them to customers are available anytime, Using E-Commerce, organization can expand their
anywhere. Here 24x7 Refers to 24 hours of each market to national and international markets with
seven days of a week. minimum capital investment. An organization can
 Advertising / Marketing: E-commerce increases easily locate more customers, best suppliers and
the reach of advertising of products and services of suitable business partners across the globe. Secondly,
businesses. It helps in better marketing E-Commerce helps organization to reduce the cost to
management of products / services. create process, distribute, retrieve and manage the
 Improved Sales: Using E-Commerce, orders for paper based information by digitizing the information
the products can be generated anytime, anywhere [5] and also E-commerce improves the brand image of
without any human intervention. By this way, the company. It can be deduced that E-commerce
dependencies to buy a product reduce at large and helps organization to provide better customer services
sales increases. and also E-Commerce helps to simplify the business
 Support: E-Commerce provides various ways to processes and make them faster and efficient. E-
provide pre sales and post sales assistance to Commerce reduces paper work a lot and increases the
provide better services to customers. productivity of the organization [6]. It supports "pull"
 Inventory Management: Using E-Commerce, type supply management. In "pull" type supply
inventory management of products becomes management, a business process starts when a request
automated. Reports get generated instantly when comes from a customer and it uses just-in-time
required. Product inventory management becomes manufacturing way [5].
very efficient and easy to maintain.
 Communication improvement: E-Commerce ADVANTAGES TO CUSTOMERS

provides ways for faster, efficient, reliable 24x7 Customer can do transactions for the product or

communication with customers and partners. [6][4] enquiry about any product/services provided by a
company anytime, anywhere from any location. Here
24x7 refers to 24 hours of each seven days of a week
and also E-Commerce application provides user more
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options and quicker delivery of products. Secondly, Commerce. Software development industry is still
E-Commerce application provides user more options evolving and keeps changing rapidly.[8] In many
to compare and select the cheaper and better option. A countries, network bandwidth might cause an issue as
customer can put review comments about a product there is insufficient telecommunication bandwidth
and can see what others are buying or see the review available. Special types of web server or other
comments of other customers before making a final software might be required by the vendor setting the
buy. E-Commerce provides option of virtual auctions e-commerce environment apart from network servers.
[7]. Readily available information. A customer can Sometimes, it becomes difficult to integrate E-
see the relevant detailed information within seconds Commerce software or website with the existing
rather than waiting for days or weeks last but not least application or databases. [11] There could be
E-Commerce increases competition among the software/hardware compatibility issue as some E-
organizations and as result organizations provides Commerce software may be incompatible with some
substantial discounts to customers [10]. operating system or any other component.

ADVANTAGES TO SOCIETY NON-TECHNICAL DISADVANTAGES

Customers need not to travel to shop a product thus Initial cost: The cost of creating / building E-
less traffic on road and low air pollution ecommerce Commerce application in-house may be very high.
helps reducing cost of products so less affluent people There could be delay in launching the E-Commerce
can also afford the products.[6] E-Commerce has application due to mistakes, lack of experience. User
enabled access to services and products to rural areas resistance: User may not trust the site being unknown
as well which are otherwise not available to them. faceless seller[8]. Such mistrust makes it difficult to
Also E-Commerce helps government to deliver public make user switch from physical stores to
services like health care, education, social services at online/virtual stores. Security/ Privacy: Difficult to
reduced cost and in improved way. ensure security or privacy on online transactions [12].
Lack of touch or feel of products during online
DEMERITS OF E-COMMERCE: shopping. E-Commerce applications are still evolving

E-Commerce disadvantages can be broadly classified and changing rapidly. Internet access is still not

in two major categories [8][9][11][12]: cheaper and is inconvenient to use for many potential

 Technical disadvantages customers like one living in remote villages [11][12].

 Non-Technical disadvantages
CONCLUSION:
E-commerce is an emerging trend in Indian economy
TECHNICAL DISADVANTAGES:
in the post economic reforms era. E-commerce offers
There can be lack of system security, reliability or
many benefits to the various stakeholders. These
standards owing to poor implementation of e-
benefits are cost effectiveness, quick comparison
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shopping, better customer service, higher business 6. http://www.tutorialspoint.com/e_commerce/e_
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development etc. At present there are several barriers S.Jagannath, DR. Dharmendra Chahar ,
in the development of e-commerce such as initial Analysis of E-Commerce and M-Commerce:
investment, technological issues, computer ill- Advantages, Limitations and Security issues,
literacy, legal hassles, and adverse mindset of International Journal of Advanced Research in
consumers, privacy and security issues. However, Computer and Communication Engineering
these barriers to e-commerce shall be taken care of in Vol. 2, Issue 6, June 2013,pg 2361-2370
due course and hence e-commerce has bright 8. http://ecomputernotes.com/e-commerce/e-
prospects in India. We need to update ourselves to commerce/what-are-the-limitations-of-e-
greet e-commerce and reap its benefits. commerce
9. http://www.tutorialspoint.com/e_commerce/e_
NOTE: This review paper was presented in National commerce_disadvantages.htm
Conference on “Recent Trends in Computer Science 10. Dr. Prakash M. Herekar, E-COMMERCE IN
and Application” 2015 at Institute Of Management INDIA – PROBLEMS AND PROSPECTS,
And Research, Jalgaon and at Shram Sadhana ASM’s International E-journal of Ongoing
Bombay Trust College of Engineering and Research on Management And IT e-ISSN-
Technology, Jalgaon (authors secured second prize in 2320-006
paper presentation). 11. Emmanuel Lallana, Rudy Quimbo, Zorayda
Ruth Andam, ePrimer: An Introduction to
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