Sale of merchandize through the e-commerce route is growing in exponential proportions, thanks to the global reach to customers through Internet and the power of credit cards, e-banking and electronic money transferring portals.
More and more sellers are expanding their businesses through e-commerce, though this channel is not free from a few disadvantages.
Lack of personal touch to win customer’s hearts
E-commerce transactions are faceless transactions. There is no face-to-face meeting with customers. In normal world of commerce, smart salesmen and businessmen can convince doubtful or indecisive customers through their peppy and convincing sales talk to conclude an otherwise elusive business. There is a saying that people buy essentially out of impulse and then justify it by logic. This means emotional swings have a definite role to play in sales transactions and smart sales people can definitely play a role in playing with the emotions.
This emotional factor is elusive in e-commerce. People have to be sold only through the faceless “e-sales promotion” route and getting repetitive customers who come back to you “just because they like you” would be missing in e-commerce.
Odds are more in favor of buyer
Since customer satisfaction is the basis on which any business runs, it is all the more important for a e-commerce website where there is little scope for face to face reconciliation between buyer and seller (like ebay) that odds are stacked more in favor buyers than sellers. It means that money transaction regulations make doubly sure that only when a customer closes a transaction after receipt of goods to his/her entire satisfaction, the money reaches the seller’s hands.
While it is right to protect the buyers’ interest this way, it may also turn detrimental in some cases to the seller, where a fraudulent or adamant customer can play dirty games to take undue advantage of the seller.
The risk of a loss in auction sales
Many e-commerce sites encourage selling through the auction route. While this may help many sellers to clear off over-stocked or unmoving products quickly to get a quicker turn-over, there are occasions where the bid prices may fall short of economic sales price and the seller will be duty bound to sell it as per the listing terms in the bid.
Painful buyback procedures
E-commerce sellers have to invariably offer buyback facility based on the terms of selling agreed. In some cases, the process of getting the sold item back and then offering the free replacement will be quite cumbersome and costly too (like excess expenditure on packing, re-packing, courier charges etc).
However, with whatever disadvantages associated with e-commerce, there is no likely going-back on this new business avenue, which has nothing but great growth potential in the coming future.