Management Information System (MIS) Practice Exam

Which of the following is a disadvantage of e-tailing?

1. It is limited by physical store and shelf space restrictions.

2. It complicates the process of comparison shopping.

3. It reduces a company's inventory turnover time.

4. It requires additional time for products to be delivered.

The correct answer is: It requires additional time for products to be delivered.

E-tailing, or electronic retailing, presents a number of advantages, but it also has disadvantages that can impact both businesses and consumers. One significant drawback is the requirement for additional time for products to be delivered. Unlike traditional retail stores where customers can immediately take home their purchases, e-tailing relies on shipping and handling, which can introduce delays. This added time for delivery can lead to customer dissatisfaction, especially if they expect immediate gratification or need items by a certain date. This delay can also impact the purchasing decisions of consumers who may be inclined to shop at physical stores for the quicker access to products. In contrast, some of the other options primarily reflect characteristics of either traditional retail or the general nature of online shopping that do not specifically pertain to the disadvantages of e-tailing itself. For instance, the limitation of physical store space doesn't apply to e-tailing in the same manner, as online platforms can offer a wider range of products without being confined to the limitations of physical shelf space.