discussion post 413

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Part 1: please answer with a min of 250 words. site any sources used.

Imagine that you are interested in starting an e-Commerce business. Compare the major advantages and disadvantages of starting an e-commerce business versus a traditional brick-and-mortar business. Examine the significant risks of going global with an e-Commerce business.

Part 2: comment and respond opinion to post with a min of 100 words.

The advantages of starting an e-commerce business may include firstly, convenience. Unlike the brick-and-mortar business, e-commerce offers a lot of conveniences as customers can buy their products at any time regardless of their geographical location (Khurana, 2018). Secondly, new customers. E-commerce allows businesses to gain new customers with search engine visibility, which would drive more free traffic to the site. Thirdly, no physical store needed. Given that e-commerce is a virtual market, there is no need for a physical store, hence the business may save rent and store maintenance costs. The e-commerce business has disadvantages which may include one, the cost of site construction, maintenance, and upgrade. The may incur high costs when constructing and maintaining a website that is in multiple languages, currencies and tax locations. Two, cultural differences. Given that e-commerce may involve customers from different parts of the world, the business will be exposed to cultural differences which may be unfavorable. Thirdly, security and credit card fraud may scare away some e-commerce customers (Khurana, 2018).

The advantages of brick-and-mortar business include multiple payment methods. Unlike the e-commerce business which relies mainly on the credit and debit cards, the brick-and-mortar business allows more payment methods for the customer, including cash. Two, relatively lower maintenance cost. Unlike the e-commerce which invests a lot of money in maintaining and upgrading the site, the brick-and-mortar business incurs relatively costs to do the same (Arthur, 2017). The disadvantages of the brick-and-mortar business include one, rental costs. Leasing commercial space is among the largest expenses that brick-and-mortar businesses incur. Two, locale limitations. Unlike the e-commerce business which allow customers to shop from any geographical location, the brick-and-mortar business is geographically limited.

Part 3: comment and respond opinion to post with a min of 100 words.

The major advantages and disadvantages of starting an e-commerce business versus a traditional brick and mortar business would be:

The advantages of e-commerce would be the low cost. E-Commerce’s company does not spend a lot of money to pay rent, equipment, employees, and security to operate their stores. Another advantage is that people can shop online at any time. People who do not have time to go to the physical store due to their schedules will prefer to buy their product online, and the e-Commerce company does not have to worry about hiring employees at night to process those orders.

Even though e-commerce seems very beneficial for business, it still has disadvantages.

Some consumers prefer to go to brick and mortar shops to see the product before buying it. For example, some customers prefer to go to the store and try clothes on to see how it fits and how comfortable it is before buying it, and e-commerce does not give them that option. Also, some people want to avoid credit card fraud when shopping online, and they prefer to go to the brick and mortar shops to stay away from scammers.

Technology is not well developed in all countries, in order to do well in e-commerce population should have full access to the internet. It will difficult to have successful e-commerce business in some Asia and African countries to the lack of advanced technology.

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