Advantages and disadvantages of E-commerce

E-commerce has some advantages for international trade. One is that an open global economy allows the ability of markets to interact and trade without concerns about geographic location or time. Another advantage is the volume of goods traded internationally will increase in both developed and developing countries. E-commerce also allows companies to trade internationally without negatively effecting the environment. This also reduces the amount of materials, energy and land consumed by these structures. A disadvantage that e-commerce has on international trade is the lack of privacy, data protection and security for the companies involved. Another disadvantage is that it is difficult for both parties to communicate which brings problems in verifying records when transactions are conducted online. Also a disadvantage in e-commerce is for developing countries. Since the U.S. is the leader in defining the Internet, by trading internationally companies will design their Internet and e-commerce around the U.S.

Effects of E-commerce

Throughout the past ten years, electronic technology has changed drastically. Having a computer and the Internet is almost a necessity for people, especially in the field of business. E-commerce, which is defined as a method of buying and selling products and services electronically has had a huge impact on the economy. This impact includes advantages and disadvantages for suppliers, consumers, international trade and the government as e-commerce evolves.

E-commerce has many effects on the suppliers of goods and services. An advantage that it has for suppliers is better distribution. With e-commerce, suppliers can directly contact and access buyers and eliminate the marketing cost. Another advantage that e-commerce provides for suppliers is marketing communications. This allows suppliers to obtain information from customers for the purpose of serving them more effectively. The web also allows suppliers to advertise and promote products on-line.

Introduction of E-commerce

In the 21st century, the rapid development of information technology and the rapid increase in information exchange have brought new drives and innovative ideas to the whole society. The wide adoption of information technology by the community has led to great changes. These changes are not simply in the context of data processing or computing. They are changes which affect how we communicate with each other, how we organise our daily activities, how we educate the younger generation, and how we run business. The development and wide adoption of information technology, computer network and Internet have transformed the mode of operation of many businesses, and at the same time have brought along unprecedented business opportunities. Businesses are now able to conduct transactions across geographical boundaries, across time zones and at a high efficiency. E-Commerce has become the market trend of the Century.

The Government of the Hong Kong Special Administrative Region is now doing her best to make Hong Kong a leading digital city in the Asia Pacific Region. Promotion of E-Commerce is one of the major tasks.