Download E-Commerce Drawbacks

E-Commerce
Drawbacks
Although e-commerce is a
tremendous opportunity for
businesses, there are also
downsides which need to be
explored.
Consumer Trust
• The most difficult issue that online businesses
face is costumer confidence.
Lack of human contact
Some customers are deterred from purchasing
online because they cannot speak to anyone
from the business. This is impersonal and they
prefer to shop in a traditional store.
Buying clothes online means you are unable to try
on before buying.
Delivery issues.
• When going to a traditional shop,
customers have the option to take their
purchases home immediately. When
shopping online, they have to wait until the
purchases are delivered.
• Damage in the post is also an issue which
involves returns and in some cases claims
against the seller.
International legislation.
• When selling online, businesses are not just
subject to legislation in the country of origin, but
also to the laws in the countries where the
customers live.
• Legislation for e-commerce is a very complex
area, one that is still being defined. In the UK,
you have to be 18 to buy alcohol, but in the
United States you must be over 21 in all states.
However it would be quite possible for a
business based in the UK to sell a case of wine
over the Internet to a customer aged 18 in the
US.
• Which law should be followed, UK or US.
Product description problems
• Some customers worry that what is described on
the e-commerce site might not accurately reflect
the real product. This is especially difficult for
colours, as different computer systems may
display colours slightly differently.
• Quality of the picture displayed on the website is
another factor.
• E-Commerce sites can exaggerate their
descriptions of products, which may put people
off buying online.
Security Issues.
• Perhaps the biggest worry for customers is
that their financial details will not be safe:
that the business will use them in some
unauthorised way or security may be
insufficient, resulting in their identity being
stolen by criminals.
Barriers to e-commerce
• Requirement for both seller and buyer:
hardware / software / internet connection /
technology.
• IT literate.
• Remote locations and poor areas.
• Physical distance.
• Unreliable delivery service.
• Divulging Personal data
• Trust
Task
• Research the internet to find out what laws exist
regarding the sale of alcohol to minors in a
number of countries.
• At what age does a person reach majority in
these countries. Present your findings as a
table.
• Choose another product for which you think
there are may be legislation affecting its sale or
movement between countries.
• Research the internet to find out what legislation
exists in the UK and one other country.