E-commerce results in social and economic advantages and disadvantages. Among the advantages, e-commerce enables people to have diverse choices for goods and services, promotes convenience and facilitates access to information. However, it also promotes fraud, inhibits relationships or personal touch, and contributes to loss of jobs.
E-commerce enables people to compare prices and the quality of services and goods, allowing them to get value for their money. It also saves time and the cost of travelling to physical stores. In addition, e-commerce promotes communication through emails, social media and websites. It also facilitates international business by eliminating geographic barriers, leading to economic growth and globalization. In addition, e-commerce promotes competition between smaller and larger companies.
E-commerce enhances life experiences because people are able to access customized goods and services. This occurs because e-commerce websites monitor consumer behavior and needs, allowing companies to offer services and goods which meet the needs of consumers.
However, e-commerce suffers security issues, such as hacking and credit card fraud. E-commerce's reliance on the Internet can lead to customer dissatisfaction and financial loss for businesses when the Internet goes down. When local companies fail to compete favorably within the global market, they may be forced to reduce their staff. Loss of jobs has negative social and economic effects on the society, such as poverty and low standards of living.