Presentation on theme: "E-Commerce Drawbacks Although e-commerce is a tremendous opportunity for businesses, there are also downsides which need to be explored."— Presentation transcript:
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.