All of the following are unique features of e-commerce technology, except

What are all of the following unique features of e-commerce technology?

All of the following are unique features of e-commerce technology, except:

– It is possible to have an e-commerce website without the use of software.

– Interactivity between a customer and producer via a variety of communication channels on any device.

– Virtual shopping (the ability to buy something without going to the store).

– Saving money by purchasing in bulk. 

– Buy one get one free offers. 

– The ability for buyers to review items that they have purchased online and rate how satisfied they are with their purchase.

– The implementation of personalized advertisements depending on what customers are looking for.

What are the advantages and disadvantages?


– Saving time and money.

– Increasing profits by increasing sales. 

– Increase accessibility to the market by being “all business” instead of “just a hobby”.

– New customers who can be attracted to use e-commerce website content. 


– Loss of control over how much money is spent on advertising, which can lead to significant losses. 

– Profit margin lost when savings are higher than what was spent on advertising and other marketing costs; this may result in less profit per sale (especially if product prices increase).

– Disruption in existing business processes (increased cost of distribution and loss of access for new generations).

– Loss of flexibility in existing business processes (increased cost of distribution and loss of access for new generations).

– Higher cost of operation to attract new customers. 

– Limited availability when products are sold out (stores can “make up” a shortage in stock; online stores cannot). 

– Credibility: buying products online involves consumer trust, and this can be difficult to gain especially when it is a new form of commerce. 

– High frequency of software bugs that can cause repeated frustration. 

– Intruders who have not yet been detected may be able to access confidential information such as credit card numbers, bank account details, business critical data or personal information about clients.

What are the features?

– More than half of the US population does not participate in e-commerce. 

– Those who do are typically more affluent than those who don’t.

– Online purchases are typically 1/3 of retail purchases.

– What happens once a customer buys is determined by how the customer has been “vetted”. 

– The longer it takes to process a purchase (time between order and delivery) will increase costs, thereby decreasing profits per sale. 

– Increased complexity of e-commerce systems (software, processes and infrastructure).

– An increase in capital required to operate an online store and maintain that system.

– Loss of control over how customers spend their money.

– E-commerce must adapt to the customer’s needs and preferences. 

– Consumers find it easier to buy new products or services with e-commerce.

– E-commerce increases profit margins by reducing inefficiencies and increasing efficiencies (through automation). Creating a successful e-commerce business takes time and investment to become profitable despite the high risk involved.

– Benefits of online shopping include: convenience, speed, choice, and accessibility (which is what most businesses want).

What is the purpose?

– To increase the number of customers.

– To have access to a customer base that was previously unreachable.

– To sell products/services to more people.

– To increase sales and profits, and thus increase employee wages (higher profits are more widely shared). 

– To gain a competitive advantage over competitors by becoming more efficient (can be done through automation). 

– Cost reduction through mass production, reduced distribution costs, reduce marketing costs. 

– Cost reduction through centralization. 

– Increase accessibility to the market by being “all business” instead of “just a hobby”. 

– Increase sales by offering deals or discounts that are not available at store locations.

Are there any drawbacks?

– The operations of an online store are susceptible to cyber-crime. 

– Not being able to inspect and test products before purchase can be costly for consumers. 

– Visual inspection of the product is not possible when buying online, and customers can’t hear how something sounds before purchasing it.

– Poor Quality Control which results in problems that arise after a product has been bought (solvable by offering a return policy). 

– Unethical companies may not resolve customer complaints fairly. 

– Companies must ensure the quality of their services despite potentially making mistakes without seeing or talking to their customers. 

– Lost sales due to increases in prices of products or services.

– The cost of operating an online store: capital investment required, costs to transfer products from the factory (for example, food and clothing), staff hired for processing (only for large stores) and other company operations.

– The loss of customers when e-commerce companies keep releasing new products without adequate notice or advertising. 

– Money that is spent on capital investment is lost if the process takes longer than expected. 

– Cost reduction strategies that do not result in a sufficient increase in sales can lead to loss of profits because of higher production costs and reduced margins.


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