Question

Identify some benefits and issues of e-commerce. What issues might you face selling tobacco and alcohol via the web?

Answer 1

Answer:

E-commerce means the use of internet for promoting business and trade. It requires internet connection, a web page and hardware such as mobile, laptop, computer etc.

The benefits of e-commerce are:

1. It overcomes the geographical limitations. It helps the companies to grow globally. Anybody can promote his business activity globally over e-commerce.

2. It is comparatively cheap. The costs associated with e-commerce are relatively very low.

3. It reduces the time and cost of travel. Rather, the travel time and cost in e-commerce is almost nil.

4. It attracts more customers. It helps to grow in various markets.

5. The consumers get more bargaining power. They have a more options to choose. It helps them to make comparison easily and quickly.

6. E-commerce helps in quick and vast circulation information. One can have access to unlimited information over it.

The issues of e-commerce are:

1. It is prone to cyber crime.

2. It is difficult to build trust over virtual network as their is no physical customer relationship management.

3. It promotes redundancy of data.

4. If proper market is not targeted, the e-commerce provides no additional benefit.

5. It is cumbersome to design content for online trade. As the content once posted cannot be changed as per consumers.

The issues one might face selling tobacco and alcohol via the web are:

1. Laws in almost all the countries prohibit sale of tobacco and alcohol to the minors. But the same will go unregulated if selling is done through web.

2. Government imposes heavy duties and taxes on such items to discourage the consumption of tobacco and liquor. In e-commerce, there will be more tax avoidance and smuggling leading more and higher consumption rate of the same.

3. The advertising will be unfiltered and will reach more audience promoting and encouraging the consumption of tobacco and alcohol.