ChapterIII:The Benefits And Limitations Of Online Trading :

Benefits of online trading for companies and institutions :

- online trading expand market extention to international and global extention. With little cost, could Any company and more consumers find the best suppliers and partners the most appropriate and quick and easy.
For example, in 1997 The Boeing Company for the provision of Mali 20% of the original cost, after the announcement of the The need to plant for the manufacture of the part of the company.
The announcement on the company's Web site. Hungarian company responded to this request has been presented the Hungarian company is cheaper, better and faster than the rest Companies.
- Reduce the costs of e-business creation, processing, distribution, preservation and retrieval of information on paper. For example, .
Finding the online procurement, companies can cut administrative costs for the purchase of 85 per cent - Ability to create highly specialized trades. For example, in a normal situation, the dog games can Purchased from any place of the animals. But now to find sites on the net only in the specialized dog games see http://www.dogtoys.com/!
- online trading allows the reduction of inventory through the use of the process of drawing management system Supply chain. In the drawing, the process begins with access to commercial demand by the consumer Just-in-Time and provide the consumer through the application of appropriate temporary manufacturing - The process of drawing allows the manufacture of the product or service in accordance with the requirements of the buyer and this gives the company an advantage Commercial rivals. The biggest example of this is for the manufacture of Dell computers. This study will be Later.
- online trading reduces the time between disbursement of funds and access to products and services.
- online trading has caused re-engineering business processes.
Through this change, the productivity of vendors .
Staff and administrators jump to more than 100 %
- online trading reduces the cost of telecommunications
- The Internet is much cheaper than the Value Added Networks.
Value
-added networks
-And other benefits include improving the image of the company and improve customer service and find new business partners and to facilitate Operations and reduce the time to send the products and services and raise productivity and the disposal of securities and reduce Finally, the costs of transportation and increase flexibility in the deal.

The benefits of online trading for consumers:

- Online trading gives consumers the option of shopping or to terminate the transactions 24 hours a day and in any On the day of the year from anywhere on Earth.
- Online trading provides many options for the consumer because of access to products and companies not Not available near the Asamthlk.
- In many cases, online trading is one of the cheapest places to shop because the seller can Shopping in the many sites on the Internet and compare each company with the goods again easily.Therefore, in the last Would appreciate it to get the best offer.While it is difficult, if necessary, visit each site Various geographical only goods in order to compare each company with another.
- In some cases, especially with digital products such as the online book, online trading Enable the buyer to send the goods quickly and easily to the seller.
- Customers can access the necessary information within seconds or minutes through online trading.On the other hand, it may take days and weeks to get a response if you request Information from the concrete.
- online trading allows to participate in virtual auctions.
- Online trading allows customers to exchange experiences and views on products and services across communities Email on the Internet (forums, for example).
- Online trading encourages competition, which means lower prices

Benefits of online trading to community:

- Online trading to allow the individual to work at home and reduce the time available for shopping, which means congestion Less traffic in the streets which lead to a reduction in the proportion of air pollution.
- Online trading to allow some of the goods to be sold cheaply, and thus income individuals who can Material is not high, they can not buy these goods, which means raising the standard of living of the society as a whole.
- Online trading allows people living in third world countries that have the products and goods not Available in their countries of origin. They can also obtain university degrees via the Internet.
- Online trading to facilitate the distribution of public services such as health, education and social services at Low price and higher efficiency.

The technical challenges of online trading:

- There is a lack of reliability, safety, standards and protocols.
- There is no adequate bandwidth for telecommunications.
- Software development tools are still constantly changing and quickly.
- Difficult to process the Internet and online trading software with some applications and databases Currently in use.
- May require suppliers to particular Web servers and other infrastructure in addition to the network servers.
- Some software online trading does not fit programmatically and technically with some hardware or with some systems Operation.

Non-technical challenges of online trading:

- Cost and justification: the cost of the development of online trading by the company itself may be very high and mistakes Resulting from lack of experience may cause disruption of online trading.There are several opportunities for its companies to These tasks, but not easy to know a company is appropriate.To justify such a system, the Director to deal with the physical benefits, a difficult calculation.
- Privacy and Security: This is a very important company in the world of the consumer, especially in the field of security, safety, and that a lot of people think that a strong 100%.Many people are reluctant to participate in the online trading by reasons of fear of disclosure of their privacy.
- Lack of trust and user resistance: some customers do not trust unknown vendors, which they see and trust Paperless transactions and electronic cash.

Other factors:

- Lack of touch products. Some customers would like to touch products before purchasing them.
- Many of the legal matters are not resolved in the online trading in particular matters related to Piracy.
- Online trading is still in phase I, which is characterized by rapid change. Many people would like to see Something fixed before investing in it.
- There are not enough buyers and sellers in many of the applications to make it profitable.
- Online trading has caused a breakdown in the relations of people with each other.
- Internet access is still expensive for many people and the connection speed is still slow in many Countries in the world.