E-commerce is the process of exchanging services such as buying and selling, or benefiting from some remote services through an online store. Therefore, it is essential to understand all the advantages and disadvantages of e-commerce as well as the e-commerce system to make it easier for you to achieve the desired business results.
E-commerce has a significant impact on both companies and individuals because of the goals, profits, and conveniences it achieves on all levels.
One of the advantages of the e-commerce system for companies is that it has made it very easy to increase profits while saving time, effort, and money.
Although the trader gains financial and moral benefits from e-commerce, there is also a benefit for individuals or users.
There are many advantages and disadvantages of e-commerce that help you understand this field, its needs, and its various challenges.
It is very difficult to list all the advantages of e-commerce because they are many, but here are some main features of e-commerce:
One of the most important features of the e-commerce system is the low physical cost of the store. Traditional stores need a place, many facilities, and the payment of many bills and salaries for many employees. While online stores need fewer costs due to the absence of the logistics part and because the online store requires fewer employees.
You may not be able to be present constantly in your regular store, and customers can only visit your store at very specific times, while the e-commerce system allows you to work 24 hours a day, 7 days a week without your constant presence because purchase operations happen electronically. Also, the online store allows customers to visit the site and complete purchases at any time without being restricted to certain hours, providing a free shopping experience.
Before the appearance of online stores, if someone from Jeddah told you they would buy shoes from France, you would think this is a waste of time, effort, and money. But with the appearance of the e-commerce system, anyone can buy any item they want from anywhere in the world as long as the online store offers shipping to the desired area. This has become very easy due to the availability of many shipping companies working locally and globally.
You can easily display best-selling products to reach the largest number of your target audience through the Fehris search engine tool, which offers several search features including displaying best-selling products, product filtering, and easy access to the desired product.
It is very difficult to request personal information from customers in traditional stores or monitor their shopping behavior because of the discomfort this causes customers. However, the e-commerce system provides you with important personal data for your store, and it will be easy to analyze it and understand user behavior, which allows you to develop your online store.
Although the e-commerce system has provided innovative and easy solutions to many trade problems, there are some drawbacks associated with e-commerce.
A strong impact on online stores is technical malfunctions, which hinder the purchase process because users cannot access the site or complete the purchase. To avoid this problem, you must choose a suitable platform to host your online store like Zid platform to avoid such problems and prevent losses.
One of the disadvantages of e-commerce that makes a large segment of the target audience avoid buying from online stores is the inability to try products before buying, due to their fear of defects or not fitting them. Addressing this problem requires following up with actual customers and asking for product reviews while providing incentives like reward points, and displaying reviews on the site to gain more customer trust. Another smart solution for the fitting problem is creating an image of the product with the customer, for example, hair dye colors or showing photos of different sizes with models resembling the target users.
You should be aware that you are not the only online store providing that service or product; there are many online stores worldwide offering the same service or product. This means losing a large part of your target segment to other stores. To avoid this problem:
One disadvantage of e-commerce is that it does not satisfy the customer’s instant curiosity, as the e-commerce system forces the customer to wait until the product arrives and is examined. Therefore, when choosing a shipping company, you should select the best and most credible company. The best shipping company to make your customer’s experience special should have:
The e-commerce system in Saudi Arabia is a comprehensive legal framework that regulates the relationship between service providers and online shoppers. The system aims to enhance trust in digital commerce, protect consumer rights, and ensure compliance with laws and regulations.
Online stores must clarify the following basic data:
Consumers have the right to return goods within 7 days from the contract date if unused, except for:
The system requires e-commerce practitioners without commercial registrations to document their activities through official documentation platforms and disclose all their data to ensure transparency and protect consumers.
The system sets strict penalties for violations, such as:
A specialized committee reviews violations and determines penalties based on the severity and repetition of the violation, with the possibility of publishing penalties in the media at the violator’s expense.
The system allows violators the right to appeal penalties before the administrative court. Courts also have jurisdiction over disputes and compensation claims arising from the application of the system provisions.
What are the advantages of e-commerce?
What are the disadvantages of e-commerce?
What is the e-commerce system in Saudi Arabia? It is a legal framework regulating electronic commerce to protect consumers and enhance trust, specifying rights and obligations for service providers and consumers.
What are consumer rights regarding returns? Consumers can return unused products within 7 days, except for specific categories such as digital products, newspapers, and custom orders.
