THE ADVANTAGES AND DISADVANTAGES OF E-COMMERCE FOR CONSUMERS

THE ADVANTAGES AND DISADVANTAGES OF E-COMMERCE FOR CONSUMERS. 1. Greeting Hello everybody. On behalf of group 5, I’d like to welcome you. Today our group is here to talk about “The advantages and disadvantages of e-commerce for consumers”. 2. Introducing the group’s members Group 5 consists of 5 members that are Vu Ngoc Linh, Nguyen Thao Ly, Tran Thi Phuong Mai, Nguyen Duy Manh, Tran Quang Manh. 3. Introducing the group’s topic Today’s socio-economic development, along with the need for trade between manufacturing industries, requires a centralized place to introduce and exchange products of enterprises. That is one of the main reasons why e-commerce was born. E-commerce has revolutionized the way businesses operate by providing a platform for global reach, streamlined operations, and convenient online shopping experiences. It has become an integral part of the modern economy and offers a wide range of opportunities for businesses and consumers alike. So, what are the advantages and disadvantages of e- commerce? Some solutions and suggestions to overcome the disadvantages of e- commerce will be presented by Group 5 today. 4. Outlining the presentation The presentation is in 3 main sections: Section 1: What is e-commerce: This section is intended to explain to us what e- commerce is, the types and functions of e-commerce. Section 2: Covers advantages and disadvantages of e-commerce in every field of life. Section 3: Some solutions and suggestions to overcome these disadvantages.

SUBJECT:ENGLISHFOR

SPECIFICPURPOSES1

MinistryofEducation&Training Thuong Mai University

TOPIC:

THE ADVANTAGES AND DISADVANTAGESOFE-COMMERCE FOR CONSUMERS

Lecturer:NguyenThiXuanPhuong Group: 05Class:231_ENTI1011_45

Group5-231_ENTI1011_45 Page2

INDEX

GROUPDISCUSSION 3

MEETINGMINUTES(1)-GROUP5 4

INTRODUCTION 6

BODY 7

1 WHATISE-COMMERCE? 7

1.1 Thedefinitionofe-commerce 7

1.2 Typesofe-commerce 7

1.3 Functionsofe-commerce 8

1.4 Currentstatusofe-commerce 8

2 ADVANTAGES/DISADVANTAGESOFE-COMMERCE 10

2.1 Advantages 10

2.2 Disadvantage 12

3 SOLUTIONS/SUGGESTIONS 13

3.1 Onlinepaymentsecurity 13

3.2 Ensurethelegitimacyoftheproducts 14

3.3 Avoidphishingandscamswhenusinge-commerce 14

3.4 Producttestingandinspectionissues 15

3.5 Findthebestoptimalchoicewhenpurchasing 15

3.6 Technologysolutions 16

CONCLUSION 17

DOCUMENTATION 18

GROUP DISCUSSION ENGLISHFORSPECIFICPURPOSES1

Secretary)

Definition+Types+

Solutions of e- commerce +Synthesis

Functionsofe- commerce + Conclusion+

Contributingideasrelatedto“Advantagesanddisadvantagesofe-2 Completingtheoutlineofthetopic.

3 Dividingthetaskofsearchingfortopicsandinformation

Conclusion:

Dutiesformembers:Searchinginformationaboutthetopicandcompletingthetasksthat are assigned.

4 Outliningthepresentation

Thepresentationisin3mainsections:

Section 1: What is e-commerce: This section is intended to explain to us what e- commerce

is, the types and functions of e-commerce

Section2:Coversadvantagesanddisadvantagesofe-commerceineveryfieldoflife

Section3:Somesolutionsandsuggestionstoovercomethesedisadvantages

In a narrow meaning, ecommerce, also known as electronic commerce, refers tot h e

b u y i n g a n d s e l l i n g o f g o o d s a n d s e r v i c e s o v e r t h e I n t e r n e t I t

s p e c i f i c a l l y e m p h a s i z e s o n l i n e t r a n s a c t i o n s b e t w e e n b u s i n e s s e s( B 2 B ) o r b u s i n e s s e s a n d i n d i v i d u a l c o n s u m e r s ( B 2 C ) T h i s

When you log into Amazon, Shopee, Lazada accounts and purchase a book or cosmetics,this is a classic example of an E-commerce transaction

1.2 Typesofe-commerce

Thereare4basictypesofe-commerce:

Business to Business (B2B):This is Business to Business transactions Here the companies

aredoingbusinesswitheachother.Thefinal consumerisnotinvolved.Sothe

onlinetransactionsonlyinvolvethemanufacturers,wholesalers,retailersetc Forexample, CGVcinemas often sell movie tickets or Got It gift suppliers sell shopping vouchers for companies togive as gifts to customers and employees.

Business to Consumer (B2C):Here the company will sell their goods and/or services

directly to the consumer The consumer can browse their websites and look at products,pictures and read reviews Then they place their order and the company shipst h e g o o d s

d i r e c t l y t o t h e m Nowadays, there are innumerable virtual stores and malls on theinternet selling all types of consumer goods Amazon is the most recognized example ofthese sites It dominates the B2C market

Consumer to consumer (C2C):Here the consumers are in direct contact with each other No

company is involved It helps people sell their personal goods and assetsd i r e c t l y t o a n

Consumer to Business (C2B):This is the reverse of B2C, it is a consumer to business So

the consumer provides a good or some service to the company For example, in onlinesurveysites, customers provide information to organizations or businesses about their opinionsabout products or services Businesses use these surveys to improve their products or servicesand create value for customers Besides, an IT freelancer demos and sells his software to acompany This would also be a C2B transaction

1.3 Functionsofe-commerce

E-commerceservesseveralimportantfunctionsinthemodernbusinesslandscape:

Online Buying and Selling: The primary function of e-commerce is to facilitate online

buying and selling of goods and services It enables businesses to showcase theirproductsorservicesonwebsitesoronline marketplaces,andcustomerscanbrowse,select andpurchase items online

Communication via email: Email is an important tool for communication in the business

environment It allows organizations to send and receive information quicklyand

efficiently.Emailcanalsobeintegratedwithotherfunctions,suchasservicemanagement, to provideinformation and support to customers.

Process Management Function: Process management is particularlyimportant for

optimizing business operations Automating and improving business processesmay involveconnecting computers and devices to share information and data more efficiently This canhelp increase productivity and reduce errors

Service Management Function:Improvingservicequalitythroughtechnologyisa significant

application in business Websites and online applications enable customers to accessinformation and services conveniently Examples like tracking shipments and locating cargoworldwide can enhance the customer experience and increase satisfaction

Transaction Function:Online transactions allow customers to shop and conduct services

online easily Websites like Amazon and Drugstore.com provide platforms for buying andselling products and services This creates a powerful business opportunity and enhancescompetitiveness

1.4 Currentstatusofe-commerce

According to the e-commerce market research in 2022 by Metric (an e-commerce dataresearch company), Vietnam is becoming the second largest market in Southeast Asia, justbehind Indonesia Compared to the current world e-commercesituation, Vietnam isdeveloping strongly The global e-commerce growth rate has a rate of 16.24% in 2021 and

is forecast to break through to 24.5% in 2025 In Vietnam, this figure is more than20%in2021,with a size of 16billionUSD.By2025,the growthrate of e-commerce in our countrycan reach 29%, reaching 39 billion USD (Metric, 2022)

Market shareof the e-commerce market in Vietnam:ThedatacollectedbyMetric hasshown that Shopee, Lazada, Tiki, and Sendo are the four e-commerce platforms with the largestmarket share in Vietnam Specifically, Shopee takes the lead in the e- commerce market, withtotal revenue of up to 43.12 billion, which accounts for 72% of the largest market shares in 6months, from November 2021 This is followed by Lazada with 20.9%, equivalent to totalrevenue of 12.54 billion (Metric, 2022)

In addition, customers can also get more information about product quality thanks to othercustomer reviews.

b) Customization

Customization in commerce is the process of customizing the experience of an commerce website to align with the needs and preferences of an individual shopper Thiscould include showing personalized product recommendations, tailored content or specialoffers based on a customer’s past purchases or browsing behavior When you return toshopping, websites will recommend trending items you desire, thereby making shoppingmore convenient and more personalized Sellers will also rely on those data to sell productsaccording to customers' tastes without you having to tell them what you like

e-c) Community

Online shopping also creates communities - where people using the samee- commercesite join to chat and exchange with each other Participating in those communities, you canknow the quality stores in each item from people's buying experiences Furthermore, thereare individuals who specialize in buying and reviewing products for people - they are calledreviewers You will also be given advice on how to handle any difficulties or obstaclesregarding orders from everyone in the group Such groups will often also have discountvoucher hunts or share vouchers to help you buy things more economically

d) Convenience

In “e-world”, convenience means the ability to select, purchase and in some cases useproducts from your desktop at any time For example, e-commerce websites and onlinestores are open 24/7 allowing customers to shop at any time convenient for them This isparticularly beneficial for people with busy schedules or those in different time zones.Online usage of products is, of course, even available for digital products such as music orother data services For instance, Amazon's creative Christmas ad shows a shopper battlingagainst a gale-swept street clutching several bags, emphasizing the convenience of onlineshopping

e) Choice

Shopping online gives a wider choice of products and suppliers than via conventionaldistribution channels E-commerce platforms often offer a vast array of products fromvarious sellers and brands Shoppers can easily compare products, prices, and reviewswithout the need to visit multiple physical stores The success of online intermediaries such

as Shopee (www.shopee.vn) or Lazada (www.lazada.vn) is the evidence of this Similarly,Tesco.com provides Tesco with a platform to give consumers a wider choice of products(financial, travel, white goods) with more detailed information than are physically availablein-store

f) Costreduction

Have you ever dreamed of one day you could go shopping without looking at the prices ofthem? If yes, let’s take a quick look at the selling website or some shopping application.There are thousand and thousand of products with the prices you cannot imagine TheInternet is widely perceived as a relatively low-cost place of purchase a lower cost-base asthey have lower staff and distribution costs than a retailer that runs a network of high-streetstores A simple price differential is a keyapproach to encouraging the usage of onlineservices Moreover, e-commerce platforms frequently offer discounts, promotions, and couponcodes These special offers can significantly lower the cost of products, especially during salesevents like Black Friday or the double day like September 9th, October 10th In the late 1990s,low-cost airline easyJet encouraged the limited change behavior required to move from phonebooking to online booking by offering a £2.50 discount on online flight bookings

2.2 Disadvantagesofe-commerce

a) Confusionduetosomanychoices

Having many stores on e-commerce sites helps you have more choices, but sometimes

it also brings disadvantages When you approach an item that you have never bought before,you will not know which store sells the good item for you, you will be confused andhesitant in choosing You will spend a lot of time researching and choosing.Also,sincethestores willhaveidenticalpicturesfortheirproducts,youwilllikelychoose to buy afake store without knowing it

b) Nopossibilityoftriedandtestedproduct

Customers lack the facility of touching and feeling products in case of onlineshopping They are sometimes more satisfied by purchasing at physical outlets by properlychecking the product before buying The ability to speak with a sales assistant about yourneeds and issues is often more helpful than trying to find or compare products on your own

Of all the disadvantages of e-commerce, losing the ability to look your customer in the eyeand explain to them the value of your goods is the biggest loss Also, online shopping onlyprovides a handful of pictures of the product and information on size/fit/fabric If you’relucky, you might see a video Many shoppers still need more information available to makechoices Tactile considerations, such as how an item feels or how the texture comes intoplay, as well as how clothing will fit, all make a big difference when it comes to consumerpurchases

c) Shippingproblems

Another major disadvantage of online shopping is that customers need to wait forlonger time periods to get their products delivered In the case of offline shopping,customersgeton-spotdeliveryoftheirproducts Productscanbelostordamagedwhilein transit, andorder tracking systems are unable to accurately locate the product People choose the same-day, one-day, or two-day delivery, paying extra money to get their product delivered.However, these products often do not get delivered within the stipulated time and consumershave to wait for days before they finally receive their product Similar challenges are faced by

product.S o p l e as e b e a w a r e o f d e l i v e r y andl o g i s t i c s p r o b l e m s Y o u c a n d o y o u r own

of consumers' information Moreover, some online marketplaces may have counterfeit orfake products, which can be challenging for consumers toi d e n t i f y b e f o r e p u r c h a s e

e) DependenceonTechnology

Using the Internet for shopping, certainly, has both pros and cons Because commerce relies on technology a lot Therefore, technical glitches, website crashesor serveroutages can disrupt the shopping experience Consumers may face frustration andinconvenience when these issues occur Besides, not all consumers are equally comfortablewith technology Those with limited digital literacy may find e-commerce platformschallenging to navigate, leading to potential difficulties in making online purchases Finally,e-commerce platforms may not be optimized for all devices and browsers Consumers mayencounter compatibility issues when using older devices orl e s s c o m m o n w e b

Moreover,businessescansetupanautomatedsystemthatwillmake phonecallsor voice interactions

to confirm customer's transactions

3.2 Ensurethelegitimacyoftheproducts

One possible solution for consumers' concerns about counterfeit products when shoppingonline is to improve the authenticity verification processes and implement stricter measures

to ensure the legitimacy of the products being sold

Enhanced product description and images:Online marketplaces and websites should

provide detailed and accurate product descriptions along with high-quality images thatclearly show the product's original packaging, logos, and other attributes This will helpconsumers better assess the authenticity of the product before making a purchase

Collaboration with brand owners:Online marketplaces should collaborate with brand

owners to implement stricter controls and monitoring This can involve working together toreport and take down counterfeit listings promptly, sharing information about knowncounterfeit sellers, and implementing technologies such as brand-specific serial numbers orholograms for authenticity verification

Seller verification:Online platforms should implement a strict verificationprocess for

sellers, ensuring that only authorized and legitimate sellers are allowed to list their products.This can involve verifying business licenses, conducting background checks, and cross-referencing with authorized distributors

Moreover, when the products are returned because the customers are not satisfied with theproduct, it may create heavy loss on shipment and reputation Cost of logisticsh a s

a l w a y s b e e n a n i s s u e f o r e - c o m m e r c e p l a y e r s

e s p e c i a l l y for those who deliver for free With this problem, our team came up with aproposal This cost of operation can be minimized with proper returns management with aseamless interaction platform with logistics partners and vendors

3.3 Avoidphishingandscamswhenusinge-commerce

As we mentioned, nowadays there are many hackers using fraudulent e-commerce websites

to steal customer information To make sure that the personal information of your customers

is never compromised, businesses must check their websites regularly or may hire an expertsoftware professional if they don't have much idea about computers

Choose trusted payment processors:Select a trusted third-partypayment processor

that offers secure payment options