Location-based E-commerce. Advantages and disadvantages.

Location-based E-commerce is used in M-commerce (mobile commerce) which uses smartphones to conduct buying and selling of goods and services. As the name suggests location-based commerce uses the location of the customer with their approval to provide them with location-specific services. It can be used in any way, for example, it can be used for advertising in the local market, customers can locate nearby services, etc.

Location-based commerce uses GPS available devices to provide services. GPS (Global Positioning System) is a system that provides the exact location of the person with the help of the satellite. Navigation, Geographical mapping, locating people with GPS devices on them or just devices’ locations are some activities of location-based commerce. To get all these services first there need to exist the infrastructures like GPS (mobile, vehicle, etc..), server, User, Network (to help user to make requests to the server).

Advantages of Location-based E-commerce

L-Commerce basics mean providing services to customers keeping in mind their location. Different systems are available in L-commerce that can make the life of customers easy. Some advantages of using those systems are given below.

Local marketing

L-commerce systems can direct the customer within a certain range of the market to their websites if it is used wisely, which increases the business. Because of L-commerce businesses don’t have to invest heavily in traditional marketing strategies like advertising in radios, T.v, renting billboards, etc. Systems developed for L-commerce like GPS used in smartphones can even direct customers to the exact location of the local business. You can become a famous place to visit in your locality with the help of L-marketing.

Finding people or devices

GPS and other location monitoring components and be very helpful to find lost personal devices. If your devices like mobile or even vehicles are stolen then with the help of the L-commerce system we can find them and recover the data that would have been lost.

schedule work

The weather forecast of different locations is different so, the delivery business should keep in mind this forecast and schedule the delivery in a way that is fast and safe. People can also use this system if they want to travel on vacation. There are many l-commerce systems like weather forecast apps that one can use to schedule.

User satisfaction

Location-based eCommerce looks at the location of customers and makes an appropriate suggestion in shopping apps of their smartphone. Where ever you go it will find shops with the service that you want which save a lot of time. Because of l-commerce traveling has become more convenient and easy.

Evaluate performance of company

Different location-based services allow checking, how many people visit your business and also provides the location of those visitors which can help in making the next business program to increase profit. Because of these features many big and small companies already use location-based services (eg Google, Yelp).

Disadvantages of Location-based E-commerce


To get any location-based services first there needs to be infrastructure built. The cost of building these infrastructures is not cheap so, one should really think about cost-benefit justification. In some places, there might not be any benefit of building these infrastructures. which in turn can affect the business of those locations as they will not be able to do location-based e-commerce.

Lack of privacy

Location-based e-commerce uses the location of users which can be invasive. Location-based e-commerce came to exist in recent times so we don’t know how this will affect the privacy of many users. Many big companies in recent times are being accused of tracking users’ locations without their permission because of which there is hesitation to use these services.

Device dependent

Whole location-based commerce is device-dependent which means it is as good as the device you are using. Devices that you may use might not even have a GPS component which is vital at determining your location. Some devices might have more options to explore and give an option to allow or block location access.

Constantly evolving and changing

All the systems and components used in l-commerce are fairly new and constantly evolving. They have to be updated frequently to get good service and to secure privacy which can be costly.

More compitetors

Many apps and companies use location-based e-commerce. Small businesses can benefit from it if there are no big companies around the corner. Large scale businesses can get more powerful machine learning apps and can invest more in the advertisement which is simply not viable for small businesses.

Is cross-border e-commerce the future of the e-commerce industry?

Because of increase in location based e-commerce in your country you might think yes of course cross-border e-commerce is the future of the e-commerce industry but because of various reason cross-border e-commerce might not be favoured by government of many countries .One of the reason is rise in nationalism around the world. Nationalist countries will not want there jobs to be out sourced and will want to keep jobs in the country. But the main reason a government might restrict cross-border e-commerce in future will be because of taxes. Many big companies like Amazon, Apple etc outsource manufacturing to other country because of tax reason and cheap labour. Now a days countries like France, USA want these companies to manufacture more good in there country because they are loosing both huge some of tax money and jobs.

So inconclusion because of grown nationalism along with tax loss cross border e-commerce might not be popular in the future.

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