Saturday, March 14, 2009

Pros and Cons of Ecommerce in Social Networking Sites

Upon reading the comments from the previous posts, we decided to list down the pros and cons of ecommerce shopping in social networking sites (such as friendster, multiply, and facebook)

Pros:
- Easy (with just a click of the mouse, one could search for almost anything that he or she wants)

- Convenience (saves a shopper the time and money of going to a mall to purchase an item since he or she can do it within the confines of his or her home)

Cons:
- Identity of the owner of the account (trust plays an important factor when trying to purchase an item online since there's a possibility that it might only be a scam)
- Quality of the products being sold (a customer could only check the item that he purchased only when the item arrives at his doorsteps)
- Some require credit cards for purchasing products
- Some require that the customer pay for the shipping costs of the item that they purchased

An experience while trying to shop online:
While using my multiply account, I stumbled upon a page that sells custom-designed shirts. After looking thru the designs, i found one particular shirt that i liked and i decided that i would buy that item. That was until i saw that the price of the shirt did not include the shipping costs (which was about 60 pesos for metro manila residents) that made the total price unattractive for me. Although the owner of the site received positive feedbacks from past customers, the only downside to his business is that shipping costs are shouldered by the people that wants to buy the items that he is selling. There's one person that commented on his site asking if they could meet someplace so that he could save some money. For me, it would be better if the stores include the shipping price when advertising their items since it gives the wrong information about a product and would surprise a customer when he sees the price quotation for the item.

Got some more ideas about the pros and cons of ecommerce in social networking sites? How about stories/experiences of shopping online? Sound off your thoughts in the comments section.

By: JC Ellescas

3 comments:

  1. As a member of multiply community, I have encountered many accounts that use their sites for e-commerce purposes. In my point of view, I don't prefer to purchase some commodities through the net.

    One disadvantage that wasn't mentioned in this post but may be stated in other posts is the inability to personally see the product before the purchase transaction. Only after the shipment was done and the payment was given will offer the opportunity to look if the product is able to satisfy the preferences of the consumer.

    This poses a problem on the selection of the products to purchase. What if the satisfaction of the purchaser wasn't fulfilled when he has just saw the product upon delivery? Is the payment refundable? What about the shipment costs? Is it the consumer's responsibility to pay for the delivery costs even if he don't intend to purchase the product?

    E-commerce really is a milestone in the business scene. However, companies must not overlooke the its limitations so that it won't bring a decline in the companies' business processes.

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  2. Given the relative age of ecommerce in the country one cannot help but see and compare how it is with other more developed countries. (i.e. US) Maybe the primary flaw in our e-commerce is the lack of legislation supporting this new industry. One cannot help but feel unprotected by the state on fraudulent transactions. Unlike in the states, one is protected by the law and insurance. Here in the philippines, even the companies who's services are used for fraudulent transactions can't do anything to protect the consumer. How then can we build the confidence and trust needed to participate in this new industry? There are a lot of things to be worked on such as mode of payment, seller trust, buyer confidence, but maybe its time for legislation to recognize the advent of a new industry and start protecting consumers as well as sellers.

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  3. Hi
    Nice posting.This blog explain clearly.It help to know something .Thanks for making it.

    ReplyDelete