E-commerce allows businesses to sell products and services through websites, marketplaces and other digital channels. It can make purchasing more convenient, but its advantages depend on the type of business and how the operation is managed.

Wider customer reach

An online store can serve customers beyond the immediate area of a physical shop. Businesses can publish product information, pricing, availability and delivery options for customers to review before purchasing.

Potential operating efficiencies

Some online businesses can operate with lower premises costs than traditional retail stores. However, e-commerce is not cost-free: businesses may still pay for inventory, fulfilment, shipping, returns, payment processing, advertising, software and customer support.

Convenience for shoppers

Customers can search and compare products without travelling between stores. Online ordering can also provide access to products that are difficult to find locally.

Digital marketing and measurement

Search, email, social media and paid advertising can help sellers reach audiences and measure campaign performance. Effective marketing still requires suitable products, accurate information and responsible handling of customer data.

E-commerce is therefore a sales channel rather than a guarantee of lower costs or business success.