Advantages and Disadvantages of the Internet in Business – Doing Business across Geographical Boundaries

To understand the advantages and disadvantages of the Internet in business one needs to know what Internet is and what it can do. Internet, over a period of a decade or so, has developed into the most powerful tool in communication. It has made it possible to do business globally, cutting across geographical boundaries. It has completely overtaken the way we used to communicate and do business. As two sides of a coin, there are both advantages and disadvantages of the Internet in business.

With the flourishing global trade, businesses have to find inventive means to market their products. Understanding the advantages of the Internet in business, people who have switched over, from the traditional methods, to marketing their products through the net have received high returns on their investments.

People advocating disadvantages of the Internet in business are unsure whether the promotional advertisement is genuine or hype. All you see, in advertisements, are images of products you wish to purchase. Images are no substitute for touching, feeling or putting on, say, a piece of garment for trial.

Global Reach

Communicating and doing business through the net has shrunk the world. The biggest advantage of Internet is its global reach.

Some advantages of the Internet in business are:

• Potential customers have access to your website 24 hours a day, 7 days a week and 365 days a year.
• Your website acts as a virtual storefront. No need of costly infrastructure.
• Your products can be marketed globally at no extra cost. Advertising on the net is cost effective in comparison to ads on radio, television or newspapers.
• Internet has an expected growth of over 100 million people annually. Every visitor that comes to your site is a potential customer.
• It is considerably cost effective and gives you a higher return on investment.
Some of the disadvantages of the Internet in business:

• There is no face-to-face contact. This facelessness is its biggest disadvantage.
• Overabundance of promotional information makes it difficult to tell what is genuine and what is not. Leaves one more confused than one was, to begin with.
• One does not get to ‘feel’ the product.
• Fear of misuse of credit or debit card information


Despite the disadvantages, the advantages of the Internet in business far exceed them.