React developers often face choices between using class-based components and functional components, especially in scenarios like managing state in an e-commerce application. While class-based components have traditionally been used for state management, functional components offer several advantages, such as eliminating the use of the 'this' keyword, which simplifies debugging and improves code readability. Functional components also require fewer lines of code, which can lead to a more efficient development process and potentially smaller code bundles. Although functional components do not currently offer performance improvements in terms of state management, their simplicity and ease of testing make them preferable for components that do not require internal state, as they are easier to read, understand, and future-proof. As React evolves, the use of functional components is expected to become more advantageous, making them a valuable tool for developers looking to adhere to modern best practices.