Sunday, December 14, 2014

Advantages and Disadvantages of Ecommerce in Supply Chain


With ecommerce becoming a new trend for companies around the world to manage their supply networks and delivery products to their target customers, retail stores now face the possibility of being gradually replaced in the process. Compared to normal retailing, ecommerce generally offers customers more convenience and better prices. At the same time, companies are able to reach more customers and produce and sell their products at lower costs. However, for every one of these aforementioned advantage, there is at least one disadvantage accompanying it, and companies should seriously consider both when deciding whether or not ecommerce is a good strategy.

Geographical Limitation vs. Product Selection Limitation

With the absence of a physical location, ecommerce allows companies to sell goods to practically anywhere around the world and greatly expands its reach to customers. In addition, it can help attract customers by eliminating the need for them to travel to a store, thus making shopping easier and more convenient. However, these advantages of online stores also place limitations on what companies can sell online. For instance, the fact that anyone can access an online store does not mean that a company can sell and ship its products in a feasible way. Many products can be damaged during shipping, and perishable items will spoil if delivery takes too long over too much distance. Furthermore, the convenience of not having to leave one’s home when ordering a product can also be offset by the time it takes for that product to be delivered.  Even with the fastest delivery speed available, many products very often take longer to arrive via ecommerce when compared to shopping at a physical store.

Product Information Transparency vs. Increased Competition

Ecommerce gives customers easier access to a lot of information for the products they are interesting in buying. Compared to regular stores, where the amount of information one can obtain pertaining to a product is often limited to the availability of sales representatives in these stores, online stores can provide much wider range of product information in the forms of customer reviews and price comparisons. Because of this, customers become much more informed when making purchasing decisions. However, this empowerment of knowledge can also result in much tougher competition in ecommerce as compared regular retail. Product information transparency means that companies must offer more competitive prices and higher quality than the competition in order to be able to sell their products at profit and stay in business. Product reviews by customers also means less control in product marketing for companies; some negative reviews may seriously affect sales.

Less Need for Labor vs. Lack of Human Touch

Online stores can stay open all the time, and accept and process orders automatically with less need for human labor. This, when combined with the fact that no physical store is needed, can save a company a lot of operating expenses and increase margin. However, this cost-saving feature of ecommerce can also become a weakness in some situations. For example, many customers actually value the services that they get when shopping at a store just as much as – if not more than – the price and quality of a product. To these people, the act of adding products to the shopping cart and proceeding to checkout in an online store lacks personal touch and is therefore less appealing. Companies need to seriously consider their target customers when deciding whether or not more automation is a good strategy.

Conclusion

As show above, each advantage of ecommerce is accompanied by at least one disadvantage. Yet, some companies have managed to successfully leverage the former and avoid the latter, while others have had less success. Can you think of a few companies that overcame the disadvantages? How did they accomplish it?

 

Sources:



 

46 comments:

  1. They will besides provide stockroom for just a quick span of your time yet could also lengthen enough time limitations according to the importance on the customer.

    Click Here:
    packers and movers pune
    packers and movers in pune
    movers and packers pune
    movers and packers in pune

    ReplyDelete
  2. This article is efficient. Thank you for sharing it with us. I am visiting this blog on a daily basis and I am finding so much helpful article each time. Keep working on this and thank you once again. xnxx

    ReplyDelete
  3. This article is efficient. Thank you for sharing it with us. I am visiting this blog on a daily basis and I am finding so much helpful article each time. Keep working on this and thank you once again. wearable technologies
    fitbit sleep tracker
    best fitness band

    ReplyDelete
  4. Hi, can I post something as a contributor in cmuscm.

    ReplyDelete
  5. Grosse Auswahl.


    Nike Mission: To bring inspiration and innovation to every athlete in the word, if you have a body you are an athlete. Das Leben ist ein Sport: Nike hat sich als Ziel gesetzt, mit innovativen produkten Athleten zu besserer Leistung zu verhelfen und jeden zu mehr Sport zu motivieren. Nike ist aber auch die Marke für einen sportlichen Lebensstil neben dem Sportplatz.


    Thank you!!! This is good!

    ReplyDelete
  6. marketing team

    Center Mass Media, a Denver Metro based Marketing Team. Contact us now at 720.336.9266 to discuss your next project!..
    Denver SEO Denver website design Denver marketing agency Denver branding company
    CENTER MASS MEDIA Center Mass Media | A Denver Metro Marketing Team

    Thank you so much..

    ReplyDelete
  7. This comment has been removed by the author.

    ReplyDelete
  8. I am very much pleased with the contents you have mentioned about Supply chain management services..Supply chain management is a cross-functional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end-consumer.

    ReplyDelete
  9. Great post. This article is very interesting .its must be helpful
    and informative for us. Thanks for sharing your nice post.
    Business Stationery

    ReplyDelete
  10. This comment has been removed by the author.

    ReplyDelete
  11. This is such a Nice post, just followed Packers and Movers in Gurgaon your blog site too. Information Visit:-
    Packers and Movers in Gurgaon @ http://packersservice.com/packers-and-movers-gurgaon/
    Packers and Movers in Noida@ http://packersservice.com/packers-and-movers-noida/
    Packers and Movers in Delhi@ http://packersservice.com/packers-and-movers-delhi/

    ReplyDelete
  12. This is such a Nice post, just followed Packers and Movers in Gurgaon your blog site too. Information Visit:-
    Packers and Movers in Gurgaon @ http://packersservice.com/packers-and-movers-gurgaon/
    Packers and Movers in Noida@ http://packersservice.com/packers-and-movers-noida/
    Packers and Movers in Delhi@ http://packersservice.com/packers-and-movers-delhi/

    ReplyDelete
  13. This comment has been removed by the author.

    ReplyDelete
  14. This comment has been removed by the author.

    ReplyDelete
  15. That is an extremely smart written article. I will be sure to bookmark it and This article is efficient. Thank you for sharing it with us. I am visiting this blog on a daily basis and I am finding so much helpful article each time. Keep working on this and thank you once again...

    www.mixresult.com, a new-generation Mix education result news portal, publishes update result news from a highly interactive platform.

    www.mixresult.com

    ReplyDelete
  16. This comment has been removed by the author.

    ReplyDelete
  17. This comment has been removed by the author.

    ReplyDelete
  18. This comment has been removed by the author.

    ReplyDelete
  19. This comment has been removed by the author.

    ReplyDelete

  20. Very interesting. If you have paid the penalty abatement
    , we can get them back for you. Head over to refundproject.com or call us at: 888-659-0588.

    ReplyDelete
  21. Great post. This article is very interesting .its must be helpful
    and informative for us. Thanks for sharing your nice post.

    andrew fawce

    ReplyDelete
  22. This comment has been removed by the author.

    ReplyDelete

  23. What a great article. Thanks for sharing. We are always looking to innovate and carry the industry forward by sharing great practices. What are your thoughts on digital advertising in regards to SEO, Graphic Design and Content? We have seen it all over the map from 500 word pieces to 2,500 word pieces. Not to mention the new hipster designs and parallax themes. What are your thoughts? Come check us out some time. Would love to hear what you think about our blog articles too.centermassmedia.com

    ReplyDelete


  24. What a great article. Thanks for sharing. We are always looking to innovate and carry the industry forward by sharing great practices. What are your thoughts on digital advertising in regards to SEO, Graphic Design and Content? We have seen it all over the map from 500 word pieces to 2,500 word pieces. Not to mention the new hipster designs and parallax themes. What are your thoughts? Come check us out some time. Would love to hear what you think about our blog articles too.centermassmedia.com

    ReplyDelete
  25. Thanks to you, I learned many interesting things. I hope to learn more. I congratulate you for these wonderful shares. Keep it up!
    Auckland restaurants

    ReplyDelete
  26. This is really awesome,Big thanx to you,you really helped me out from my troubles.this is good to recommend to people!

    Bad Debt Insurance

    ReplyDelete
  27. Great post with very useful information to all thanks for sharing with all of us. I like it very much. Today online shopping is a great way to save our time and money also. Amazon coupon

    ReplyDelete
  28. Thanks to sharing about advantages and disadvantages of Ecommerce. Save Money and get your product immediately at Demoport Online Shopping

    ReplyDelete
  29. Your blog is so informative i have get information for your blog which i want thanks for sharing this blog with us. Logistics Services India | International Logistics Services in Mumbai

    ReplyDelete
  30. I am truly glad to read this webpage posts which includes plenty of helpful data, thanks for providing these kinds of information.

    inDesk(IDN) is a earn money online; web development forum site.

    Movie Forumz

    ReplyDelete
  31. The article you published on benefits of supply chain was very efficient and informative as well. An added advantage of supply chain can be reduction in overhead costs.

    ReplyDelete
  32. Supply Chain Management Videos, Articles and Messages.Visit Google+ Collection

    Supply Chain Management Google+ Collection

    ReplyDelete
  33. Jayem Logistics offers all-inclusive services to better manage company assets. With specially designed warehouses for space and speed maximization.
    Top logistics service provider in India

    ReplyDelete
  34. This comment has been removed by the author.

    ReplyDelete
  35. I am in a supply chain solutions industry and is motivated to rapidly grow to give Sustainable Supply Chain Solutions to all businesses across the country. I do believe that e-commerce has a lot of advantages to offer but it has it's own disadvantage also.Good decision making is the key.

    ReplyDelete
  36. Tripathlogistics found a special niche in offering highly personalized and flexible services.
    Logistics Companies in Bangalore | Logistics Services India

    ReplyDelete
  37. Jayem Logistics, one of the largest warehousing company in India, and a supreme service provider for various jobs like within city road transportation, records and data storage.
    Top logistics service provider in India

    ReplyDelete
  38. Really, relevant information about advantages and disadvantages of Ecommerce in Supply Chain management. Thanks for this type of information. Please share more information about Supply chain management services.

    ReplyDelete
  39. Thanks for sharing this great article! That is very interesting I love reading and I am always searching for informative information like this.Supply chain management services

    ReplyDelete
  40. My Drones Aerial Imagery was created by a fan (me) that just couldn't find sensible response for two or three clear undertakings. My Drones Aerial Imagery is your one stop online store for acquiring any buy drones online, Mavic and Inspire drifts in Brisbane, South East Queensland and Australia.

    ReplyDelete
  41. love your stylish blog post you are looking cute fashion blog.
    read this article

    ReplyDelete

Note: Only a member of this blog may post a comment.