Impact of e-Commerce On Society and Business: Advantages and Disadvantages

Posted on Feb 19, 2019
Impact of e-Commerce On Society and Business: Advantages and Disadvantages

eCommerce revolutionised the commercial industry by transforming it into a global market. The digital commercialisation has been beneficial to both industries and customers. The eCommerce has been booming ever since the pandemic. To catch up with the digital trend, more businesses are investing in online marketing rather than in brick-and-mortar. In this article, let’s dive into the social and economic impact of eCommerce on society and business, and its advantages and disadvantages.

What is eCommerce?

eCommerce or Electronic Commerce refers to the selling or purchasing goods and services online. In eCommerce, the transaction of goods and money, all takes place online. eCommerce is the most popular shopping option today, as it is convenient and easily accessible. There is almost nothing that is not available online nowadays, from consumables to education and financial services, everything is available online. Various business models like b2b, b2c, etc. use this online business model. 

Today, in all aspects of our daily lives, the Internet has become an undivided part of our lives, as it has a versatile impact on our social activities. Every day, going to the bank to make cash transactions or withdraw money or go to the market to buy things and essential commodities is now quite difficult since there is no time, the human being has become too busy in his work and, In 2023, the global eCommerce market reached 5.8 trillion USD, indicating the significant role of online purchasing in the society.

The Internet economy is booming. E-commerce sales are expanding by leaps and bounds at a rate of 20% and 25% each year, indicating a far-reaching change in the spending habits of human clients. Internet instead of telephone directories or yellow pages for reviews of convenience products and to obtain updated information for your search and requirements.

Also Read: Scope of e-Commerce

A business owner simply can not trust an ad in the phone book, in fact, customers are 15 times more likely to search the Internet than those who look in a phone book to call a company.

Each business is different in its aspect, even each business differs in style, promotion, and volume, but the power requirement is the same for everyone, but nowadays; It is important that life in the Internet world be updated with respect to the business transaction if you want to remain competitive with others. In the long term, the net operating cost of a website becomes insignificant compared to the return on investment provided by the advertisement.

Role of eCommerce in Business

The main way in which e commerce will affect the economy, in general, is its impact on productivity and inflation. The continued expansion of electronic commerce could also lead to downward pressure on inflation through increased competition, cost savings and changes in sellers’ pricing behavior.

The role of eCommerce in business is that electronic commerce is synonymous with electronic commerce and involves the exchange of goods and services through electronic support. The number of electronic businesses has grown considerably since the Internet was launched.

Impact of eCommerce on Business

As eCommerce came onto the scene, businesses benefited from the attention received from the global audience. Reaching the masses without the hassle of setting up a brick-and-mortar makes eCommerce platforms a convenient choice for businesses. With COVID-19, and the lockdown, most people were forced to switch to digital stores as an alternative to physical stores, and since then, there has been a rise in eCommerce sales.

By 2025, 2.77 billion people are expected to shop online and by 2027, the global eCommerce market is expected to exceed 7.9 trillion in USD. These statistics clearly speak about the booming eCommerce industry.

There are pros and cons to facilitating eCommerce in Business.

The pros of eCommerce for businesses are reducing overhead costs like rent, office utilities, etc., that keep the business running. The pre-ordering facility in ecommerce benefits the business by analysing consumer demands, generating early revenue, and customer loyalty. The eCommerce stores help businesses to effectively analyse customer preferences. With the rise in Artificial intelligence and Machine Learning, businesses can use these to effectively analyse huge customer data and their purchase history to create marketing strategies.

The cost of setting up a physical store can be huge compared to an online store. However, there are expenses associated with setting up an online store, such as digital marketing, creating a website and app, etc. 

It is necessary to take measures against online security threats that online stores can face. If online security is not taken seriously, it can affect the privacy of customers purchasing from the store, such as exposing their personal and card details.

Social Impact and Growth in eCommerce


The impact of e-commerce and its commercial impact on society has varied according to the models.

The social impact of e-commerce can be measured by satisfaction and trust through the following factors:

  • Greater use of the Internet The fastest growing demographic segment includes students and youth.
  • This segment is the leading user of advanced applications and online technologies.
  • The number of active internet users in India in the start of 2024, is over 751.5 million. From 253.85 million internet users in 2014,there has been an increase of around 500 million internet users in the last 10 years in India.
  • The Digital India program launched in 2015, aimed at digitalizing the country, has been instrumental in this huge leap in India’s digital infrastructure in the past 10 years. 
  • The growth in the number of Internet users has also led to substantial growth in other digital industries such as e-commerce, mobile commerce, and digital advertising.
  • The government of India has made efforts in the education system through the implementation of computer tools and techniques, essential for all educational levels, from primary education to the end of studies.
  • Students from urban and rural areas were sensitized by supplying the personal computer, Laptops, tablets or laptops with the use of the Internet and its advantages to improve lifestyle and provide electronic books and e-books.
  • Entrepreneurs are also attracted to advanced computer technologies and their usefulness for electronic commerce.
  • The development of educational standards at all levels has allowed a great demand for electronic commerce and m-commerce in the market.
  • Changes in online shopping habits The online shopping process is constantly being worked on to make it easier, more understandable and easier to use.
  • As online offers give some discounts and attractive prices.
  • This, along with better offers, has brought changes in the buying habits of online buyers

Also Read: WooCommerce SEO Tips

The main advantage of shopping online or online is that at no time one can know the characteristics of the item you want to buy and you can also compare the quality and its characteristics with another competitive brand available in the market along with the feedback result of Other users.

  • The cheerful lifestyle powerful influence of various social media tools.
  • Facebook, Quicker, Snapdeal, Amazon, Pinterest, and Instagram allow consumers to organize their favorite articles and collections segments to share with others around the world.
  • Therefore, society and groups of people or communities can be linked together to share their points of view and ideas.
  • This fuels personal expression in purchases and causes others to reflect on their purchase decision.
  • Increase in online payment.
  • Securities of online transactions have been a major barrier to the growth of electronic commerce.

However, the secure payment transactions provided by the website to Internet users are quick to overcome the fears. Security functions have four categories: authentication/verification, authorization, encryption, auditing, and integrity.

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The Impact of e-Business on Society

The Impact of E-commerce on Society

E-commerce and online shopping in India are achieving remarkable and remarkable growth as more and more Internet facilities, high educational standards, lifestyle change, and the country’s economic growth are being used more and more. Demand for electronic commerce techniques and tools.

  • The versatile shopping experience and the rapid development of transaction facilities are further driving opportunities for the remaining market segments.
  • The greatest advantage of e-commerce is the ability to provide secure purchase transactions through the Internet and together with the almost instantaneous verification and validation of credit card transactions.
  • This significant impact has led to a greater number of customers to exploit various fields of electronic commerce for their benefits.
  • There is also a great national diversity in the adoption of electronic commerce, particularly in marketing and subsequent sales.
  • Now India is growing and now becoming the country with more amount of people with literate people in the world of the Internet.
  • The effect of increasing the transparency of E-commerce of the macro-level and micro level with the highest productivity.
  • The digital solutions that replaced traditional applications offer many opportunities for businesses and individual consumers.
  • The services are aimed at customers.
  • The products are negotiated too quickly
  • The number of errors reduced.

Also Read: Speed up WooCommerce

Benefits of eCommerce to Society

Access for 24 Hours

If we buy from an online store, we spend low operating costs; we have a better quality of service and, therefore, additional costs can save us unnecessary costs. For example, if our goods or services are downloadable, shipping costs will be completely canceled. With every online business, more and more coupons and deals cannot be avoided, which is quite awesome for customers.

Compare to Actual Buying, Through Online the Price Gets Reduced

If we buy from an online store, we spend low operating costs; we have a better quality of service and, therefore, additional costs can save us unnecessary costs. For example, if our goods or services are downloadable, shipping costs will be completely canceled. With every online business, more and more coupons and deals cannot be avoided, which is quite awesome for customers.

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Global Market Place

Global Market Place

Every customer from all over the world can find the site, product, and information without leaving the house. In e-commerce, we do not need to visit the business physically. The facilities of the physical firm are not the criteria to be taken into account. We can buy from us at home; users can easily choose products among various procedures without having to physically move.

Easy to Compare Prices

Everyone can easily compare product prices of different companies and products in terms of quality and quantity, or the services provided with them. price, because prices are easily comparable.
They are accompanied by various specification while when the products are put online. They are finding various methods to compare with them and set us to attract them. So far, additionally to the terms offered within the exchange, electronic commerce is that the market nighest to the model of good competition.

Return of Goods

Return of goods

Returning goods online can be problematic. Uncertainties about the upfront payment and delivery of goods can be exacerbated during this process. Will the goods be returned to their source? Who pays the return fees? Will the refund be paid? Will I have nothing left? How long will it take? Compare that with offline experience of returning goods to a store. It is important to consult the return policy before buying. Always make sure that returning goods is an option

Also Read: Customize WooCommerce Product Page

Pros and Cons Of eCommerce

The introduction of eCommerce was a dynamic shift away from the traditional brick-and-mortar stores. eCommerce has transformed the whole buying and selling experience for both customers and businesses. The online marketplace caters to the diverse needs of the global audience by offering convenience and accessibility. However, eCommerce presents challenges to both customers and business owners. Before delving into the eCommerce marketplace, it’s necessary to understand the advantages and disadvantages that come along.

Advantages of eCommerce to Customers

Advancements in technology are aimed at simplifying human life. eCommerce marketplaces are examples of such an invention, offering convenience and endless choices to customers anywhere, anytime. The globally expanding online marketplaces have simplified the shopping experience for customers. Here are a few additional important benefits of eCommerce to consumers.

  • Provide details of the virtual showcase on websites with online catalogs.
  • Reduced prices due to contests (coupons and offers).
  • Access and convenience 24 hours.
  • The global market for the purchase or sale of the product.
  • Provide secure business transactions
  • It is easier to compare prices with other premium brands
  • Do not stay online or be held forever
  • Many options and range (options and options)
  • Return products if it is of lower quality
  • Time savings and reviews of easy review.
  • Various payment methods – from card payment to cod.
  • Availability of detailed product descriptions and tutorial videos for customer review.

Disadvantages of eCommerce for Customers

eCommerce is not always a piece of cake; it has downsides, too. Here are some of the disadvantages of eCommerce for customers.

  • Unable to personally examine the products
  • Privacy and security in online purchases
  • Fraud with credit cards
  • Delays in receiving products
  • Inability to identify fraud
  • Guarantee/guarantee
  • Quality
  • Hidden cost
  • Lack of personal interaction
  • Website fraud
  • Issues with unresponsive websites or slow connections
  • Complexity with understanding the return policies.

Advantages of eCommerce to Business

eCommerce is often a cost-effective option for business owners aiming for market entry. With clear-cut strategies, businesses can achieve scalable growth with less initial investment. You can elevate your eCommerce platform into a global marketplace, attracting a wide audience and establishing a popular online store with targeted advertisements. Let’s explore some of the eCommerce benefits for businesses.

  • Increase in potential market share by increasing the customer base
  • Use of EDI, B2B data exchange
  • Low barriers to items
  • Provide safe business and instant transactions
  • Participate in retail for the launch of new products and services
  • 24/7, 365 days of sales (buyer and seller)
  • Expanding the scope of the business
  • Main warehouse administration
  • Reduction of employee costs
  • eCommerce websites are cost-effective than building and maintaining a traditional store.
  • Better scalability compared to brick-and-mortar stores.
  • Effortless data analysis.

Also Read: What is New in WooCommerce 3.5

Disadvantages of eCommerce to Business

Maintaining an eCommerce business has several challenges, from online competition to security threats. eCommerce stores can be a boon and bane to businesses. Here are a few eCommerce disadvantages for businesses.

  • Update hardware and software regularly
  • Website maintenance at a periodic interval
  • Additional costs and expertise for electronic commerce infrastructure
  • The readiness of the site
  • Training and maintenance Customer loyalty
  • Outstanding logistics needs
  • Security and credit card issues
  • Fraudulent orders
  • Sufficient internet services
  • Challenges in generating website traffic.
  • High shipping cost.
  • Delayed deliveries can cause customer dissatisfaction.
  • Risks of product damage while being transported.
  • Challenges with shipping regulations.
  • Managing returns and complaints.

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eCommerce Issues and Challenges

Credit card and Online purchasing problems
  • Security aims to be a major problem in electronic commerce.
  • Everyone, good or bad, can easily open a website, and there are many bad sites whose goal is the money of cybercrime users.
  • Before making instant online transactions, be sure to check the site security certificates.
  • It is easy and convenient to buy, No one needs the personal details to set the adoption of electronic commerce, that is mainly in marketing and sales.
  • India is gradually becoming the country with the largest number of literate people on the Internet in the world, and Internet penetration is largely due to mobile phones, and some of the cheapest and most basic phones now offer Internet access.
  • E-commerce has the effect of increasing the transparency of the market at the macro level and at the micro level, greater productivity.
  • The greater productivity will be out in the market on the micro and macro level, E-commerce has the effect of transparency


eCommerce has transformed our buying culture by changing how we shop and influencing traditional retail. This shift is here to stay, with its benefits and drawbacks. Enhancing consumer protection and promoting ethical online practices can create positive growth. It is essential to focus on eCommerce’s strengths and solve its downsides for a sustainable shopping future. 

Acowebs are the developers of Woocommerce Custom Product Addons which is a optimized, lightweight, and fruitful plugin that is simply the best to add extra product options using its custom form builder easily. WooCommerce custom fields also comes with drag and drop form builder, 22+ field types and custom price formula.

Jamsheer K

Jamsheer K, is the Tech Lead at Acowebs and it's parent company Acodez. He mostly writes about Wordpress, WooCommerce and other programming languages and his writing normally comes from rich and hands-on experience in these technologies.