by Leigh Goessl

Created on: November 22, 2007

E-commerce has revolutionized the way companies do business and the way consumers shop. Internet business is growing by leaps and bounds and shows no signs of stopping as indicators suggest that e-commerce will continue to rise in popularity. The virtual storefront has created brand new business opportunities and has supplemented traditional brick and mortar stores with an additional means to grow their businesses. The future of e-commerce is bright as there are many positive features associated with it's usage.

BENEFITS OF E-COMMERCE
*Convenience for the customer. Customers love the idea of being able to shop from home and have their wares delivered to their doorstep or to be ready for pickup at a designated time. The popularity of this service has grown significantly and as society continues to evolve into an "on demand" one, expectations for speedy service will continue to grow. E-commerce supports that expectation.

*Lowers overhead costs for the business. Businesses can lower costs connected with running day to day operations. No longer is the need to hire additional employees to manage registers, direct customers to the correct aisles and answer product related questions. E-commerce has augmented shopping and with many customers now opting to shop online, the websites "conduct" the purchase transactions, Frequently Asked Questions (FAQ) are able to direct the customer, and product descriptions are clearly defined on websites. All of this lowers costs in having to pay employees for all jobs, technology takes over some of the manpower and also eliminates having to pay for benefits and overtime. Since computers do the work, the business can work with fewer employees to process those online transactions.

*Shops are open 24/7. This is a benefit to both the business and the customer. It makes the company happy because they can increase their revenues by staying open 24 hours year round, and the customer is satisfied by easy accessibility to shop at anytime they wish.

*Expanded customer base. Businesses can now market their products and services across the globe. This increases the level of consumers they can reach out to and is an obvious benefit to their bottom line.

CHALLENGES OF E-COMMERCE
*Security. One of the downsides to online transactions is the need to pay careful attention to security issues associated with doing Internet business. Data breaches and identity theft are on the rise and it is costly to put protective measures in place and to keep them current

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