Disadvantage of E-Commerce
As there are transaction going, there are risks comes to both buyer and seller. There will be some challenges which seller might have to face. For instance, additional costs and fees, fakes and frauds, customer services and customer issue, delivery issue and keyword issue and any others.
Sometimes, the additional costs and fees might occur while sellers have to pay insertion fee and a final value fee. These costs often cut the profit and make seller earn less. Furthermore, Ebay also provides upgrade to listing and some customization such as bigger frame for photo, customized picture on puzzle which will cost extra. When seller selling something cheap or so-called low price, that can result in low profits and suffer from those time spent to answer customer’s question and manage the listing.
Second, customer has to be alert for seller selling fakes on ebay such as counterfeit product. Some seller might intentionally sell the product that did not match the description. Another disadvantage is that, buyer have to bid for the item they wanted in ebay and no matter how many bidders are there, the auction will only close at specified time. Sometimes, seller can prematurely close the auction, even though you already bid it. Or, bidder might refuse to pay or return the item after receiving. In this case, ebay encourage both buyer and seller to solve the problem with one other. If either buyer or seller does not responding, they can look for ebay Resolution centre.
Fourth, the other disadvantage for e-commerce is that buyer can not enjoy the convenience as they can’t get the item after purchase it. Buyers have to wait for shipment after bidding, sometimes the seller will not stated clear about which carrier they are using.
Last but not least, for the keyword issue, this makes a lot of customer suffer into and create an invisible barrier. Sometimes, you will not be able to find the item without the specific keyword. Therefore, it is hard to sell those items that are not trending or hot keyword been used in this keyword driven marketplace. Generally, artists, crafters and authors will realized that, unless the item they selling is something that common or homogenous and often searched by customer or linked to a popular keyword, or it will be hard to dig buyers out on eBay.
Technical issues faced by Ebay
Ebay as an elephant in the room in e-commerce region, it has a strong competitor which is Amazon. There is no other online shopping website or so-called online retailer is as threatening as Amazon. We all know that Ebay used to advocate that they provide the simplest way to look for niche item. In this case, Amazon also provide those items and deliver them to member for free without process of auction. Moreover, Amazon owns quite a number of its own warehouse, therefore shorten the time of shipment to make it efficient. In spite of Ebay, ebay is consider an independent seller or intermediary with inefficient shipping. Due to the inefficient shipment, a lot of customer will shift their loyalty and purchase behavior to another website like Amazon which can offer efficient shipment.
appropriate keyword or some specified keyword. The last issue is the most classic issue that, tactile sense of e-commerce website. When people can not touch the products, feel the products, smell the products, how to build up customer trust will become Ebay main concern.
Recommended strategy to address technical issue
While we talking how Ebay should fight against Amazon, we will concentrate on their warehouse. In this case, Ebay should build their own warehouses in order to adopt the changes or some emergency issues. Let’s assume if Ebay did own their warehouse, they will be address their shipment in an easier way. Those goods to be deliver or goods that are delivering will not mess with each others. Secondly we look at delivery issue and payment system issue, some customer claimed that they are difficult to locate their item during transmission process, or some item will be deliver not in time, so-called delay. Therefore, ebay should also establish their own delivery system, or carrier. This means that Ebay could specialized and completely rely on their own carrier with only one system and order given, so there are less likely to produce mistakes. With the use of own carrier, Ebay is able to arrange their transmission time and able to locate every item anytime and then shorten the delivery time. As well as the payment system, some customers complained that there are only few choice of payment such as visa, credit card. Some of them could not make it in limited resource. Therefore, Ebay should also create its own particular pay trust system which is affordable and acceptable for everyone and make sure it can be used on Ebay.
environment, their will go for those who makes them feel familiar unconsciously. This is the reason why I recommend Ebay to advertise as much as they can, because people will tend to choose those company which are very famous and well-know or high reputation.
Feasibility and Adoptability of counter strategy
As mentioned above, is it feasible for ebay to have their own warehouse? The answer is Yes without any doubt. As we all know that Ebay is on the top of the ranking of e-commerce website, the top of the pyramid and making significant profit every year. It is feasible for them to purchase the warehouse to fight against Amazon and thus making higher profit. It is adopt for changes that fit the customer needs and wants in this era. Most of the customer expect to receive their item shortly after purchasing, with the own warehouse of ebay, ebay will able to control the time of delivery and make sure it is all in time. As we mentioned Ebay is making significant profit every year, it is also affordable for them to establish their own carrier and communicate with various bank to have their unique pay trust system. It will be accepted by everyone provided the carrier is working in good situation and the pay trust system can be used by every user on Ebay. No matter how the financial situation has changed, as long as Ebay own their pay trust system, it will hardly to be affected by changing situation.
References
1. The Disadvantages of eBay | Techwalla.com. (2016). Techwalla. Retrieved 3 November 2016, from https://www.techwalla.com/articles/the-disadvantages-of-ebay
2. The Advantages and Disadvantages of Selling on eBay today - The Whine Seller. (2016). The Whine Seller. Retrieved 3 November 2016, from http://thewhineseller.com/2011/08/advantages-disadvantages-selling-ebay-today/
