The Advantages and Disadvantages of Buying Online

Nowadays, e-commerce or online shopping has experienced a very strong growth. And worldwide  this will be increasing with the use of the Internet. It is important to highlight the advantages and disadvantages of buying online.

Buying Online

What is e-commerce?

In addition to the buying processes themselves, e- commerce includes all the processes that allow you to start and process a purchase . An online store functions as a central sales platform where potential buyers can not only browse the product range, but also order and pay via a dedicated digital system. An electronic goods management system records, the product sold and updates the stock. An RFID chip follows the shipping route. Finally, CRM systems allow you to manage your customer relationship.

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q3 2019 hedge fund letters, conferences and more

What are the pros and cons of online shopping?

Advantages of buying online

  • The Internet helps to maintain a continuous relationship between the seller and the buyer. The latter can be manifested by email, or in the forums, especially for products that deserve to be tested, such as software, games, etc.
  • It can also send updates, even the latest news etc.
  • Prices tend to fall online, due to increasing competition, market transparency, and the wide choice of the buyer.
  • For online shopping, there is a huge time saving. You do not have to run around to find what you want.
  • Deliveries are at home, and we do not need to move.
  • A wide range of products is at your fingertips, and at attractive prices.
  • On the net, the border no longer exists; everywhere in the world, you can order or buy with the utmost ease.
  • Finally, the recovery or exchange of product is quite feasible online.

However, this method of purchase does present undeniable disadvantages.

Disadvantages

  • It's hard to discuss prices on a merchant site.
  • With regard to alcohol and tobacco, there is too much freedom for drug addicts.
  • During the holidays, the sites can be saturated, and thus block access or make connections very slow.
  • Delivery times are no longer respected, and claims no longer reach sellers.
  • On the other hand, buying online excludes any notion of business relationships that are vital in the business world. For example, it is impossible to test a product or taste a food or drink before buying it.
  • We are never 100% assured of the reliability of a site, and dishonest people are always on the lookout for your credit card number.

Conclusion on buying online

Finally, the Internet has greatly facilitated purchases, but the lack of physical contact remains preponderant despite the cards and the help that merchants put online. To know about online shopping statistics read the below infographic.

Buying Online



About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver