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. E-commerce also has the advantage of offering operational benefits for the suppliers, by reducing errors, time, and overhead costs in information processing. But, e-commerce has some disadvantages for suppliers as well. One is the change in the business environment, which means each supplier must have his or her own personal computer and modem. Businesses also won't have the flexibility to change trading partners and networks at will. Another disadvantage for the supplier is purchasing on-line with a credit card, because the supplier cannot be sure about the buyer's identity. E-commerce proves to be a disadvantage for small companies because many won't be able to compete with better-known suppliers, so some will end up going out of business.
One advantage that e-commerce has on the consumer is easier market research and comparisons. The ability of the web to analyze and control large quantities of data can enable comparison-shopping and make it faster for consumers to find an item.