Week 11•Global Impact of e-Commerce on Society• How to Evaluate e-Current System •Financial Implications of an e-Commerce Solutions

EC 2006 Prentice Hall 2

Global Impact of EC on Society

• Advantages– Faster buying/selling procedure, as well as easy to find products.– Buying/selling 24/7.– More reach to customers, there is no theoretical geographic

limitations.– Low operational costs and better quality of services.– No need of physical company set-ups. – Easy to start and manage a business.– Customers can easily select products from different providers without

moving around physically.

EC 2006 Prentice Hall 3

Global Impact of EC on Society

• Disadvantages– Any one, good or bad, can easily start a business. And there

are many bad sites which eat up customers’ money.

– There is no guarantee of product quality.

– Mechanical failures can cause unpredictable effects on the total processes.

– As there is minimum chance of direct customer to company interactions, customer loyalty is always on a check.

– There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways, all are always prone to attack.

Financial Implications of E-Commerce

– Lower cost of direct sale.• Traditional means to sell orders on the web involves a

low direct cost of sale hence a cheaper means by comparison with using other means.

– Low cost of searching by consumers• Customers will be able to search almost any kind of

products online and therefore the company will be in a better position to advertise its products with competitive prices online through e-commerce and this will yield and increase its customer base (Kuksov & Lin 2010).

EC 2006 Prentice Hall 4