Disadvantages Of Online Shopping

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Online shopping is the new thing now a day, this has allowed for a large exposure to potential customer; the more patrons you are exposed to the more likely you will make sales. Over the course of this Case Assignment I will provide the advantages and disadvantages of selling books and goods over the internet, I will discuss potential increase in sales for Amazon if books were able to be downloaded online, and I will discuss benefits to venturing into the e-commerce concept that pertain to the traditional retail stores.

The concept E-commerce is short for Electronic Commerce it is defined as “the exchange transactions which take place over the Internet primarily using digital technology” (Wollan, PPT, n.d). In the mid 1990s Amazon began
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Marketplace strategies such as Amazon offer smaller business retailers an opportunity to create an image of their products, increase their product range and inventory. “Utilizing Amazon, consumers have the ability to search for a variety in one location”. (Haynes, 2006)
Amazon has included a (Frequently Bought Together) and a (Customers Who Bought This Item Also Bought) sections to their website enabling consumers to search and discover products that may otherwise not have been purchased from the retailer’s store. Repeat business from a single purchase through the marketplace offers the retailer a chance to win the consumer. Consumer feedback is also available; this can boost the retailer’s future repeat foot traffic. Along with advantages there are disadvantages to retailers when selling products online. Marketplace fees and surcharges exist. Majority of the fees are deducted as a set percent of each transaction. The fees vary, remembering the marketplaces’ primary objective is to help themselves, therefore it’s essential to understand the fees and how to manage inventory of assets. Keeping accurate inventory of products can be difficult, the marketplace offers the consumers a shopping cart not all items are purchased. Multiple transactions can take place at any given time, thus inventory accuracy is essential. Consumer feedback is available upon receiving products from purchases;
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Initially books were the sole product available, then came music, today a plethora of products are available to the consumer. Amazon sells books that are tangible and downloadable. Amazon owns the Kindle, all versions and markets Kindle ebooks.
Amazon offers downloading of all varieties of books such as novels, magazines and audio. Often there are free downloads available, the Kindle ebooks can be converted to different electronic devices such as laptops and portable computers. Amazon has proven to be prosperous by staying ahead of its completion. Electronic books accounted for “22 percent of all book spending” during the second quarter of 2012, drastic increases of 14 percent from statistics during 2011 (Milliot, 2012) The traditional retail stores have the same opportunity when setting up an e-commerce as any business. Keeping in consideration the advantages and potential setbacks when analyzing options. Outweighing all aspects prior to venturing into e-commerce is vital to success. An example of utilizing Amazon as a marketplace to retailers, “one of our free titles was the #1 download on Amazon for the entire month of February. The subsequent sales of books two and three in the series increased by a rate of 20 to 1” (Masnick, 2010). Amazon has sellers that sell used books such as Goodwill and Thrift Stores throughout the US, essentially these non-profit organizations are

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