What is one of the disadvantages of e-commerce? ans. Decreased customer engagement Higher operational costs Limited market reach Lack of security

Analysis of Disadvantages of E-commerce

1. Decreased Customer Engagement: E-commerce often lacks the face-to-face interaction that traditional retail provides. This can lead to a lower level of personal engagement with customers, which some businesses rely on to build loyalty and trust.

2. Higher Operational Costs: While e-commerce can reduce certain costs (like rent), it may involve higher expenses in technology, website maintenance, logistics, and customer service operations. These costs can add up, especially for small businesses just starting out.

3. Limited Market Reach: Although e-commerce opens up broader market possibilities, it may pose challenges in reaching certain demographics or geographic areas where internet access is limited or where consumers prefer traditional shopping methods.

4. Lack of Security: Security concerns are paramount in e-commerce. Customers may be hesitant to share personal information online due to fears of data breaches or fraud, which can hinder sales and affect business reputation.

In summary, while e-commerce offers numerous advantages, these disadvantages can impact customer experience and operational efficiency, requiring businesses to strategize effectively to mitigate these issues.