2. The drawbacks of e-commerce
• Although e-commerce is a tremendous
opportunity for businesses, there are also
downsides which need to be explored:
• Lack of human contact
• Delivery issues
• International legislation
• Product description problems
• Security issues
3. Lack of human contact
Some customers are deterred from purchasing
online because:
• they can not speak to anyone from the business
• Customers find this impersonal and makes them
feel unconfident
• Customers also wary of buying clothes online as
they cant try them on before they buy.
4. Delivery issues
• In a traditional shop, customers have the option
to take purchases home immediately.
• When shopping online, customers have to wait
until the purchases are delivered
5. 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 and is still
being defined.
• For example, 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 United States.
• Which law should be followed, UK or US?
6. Product description problems
• 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 display colours slightly differently
• The quality of the original picture of the product shown on
their website is another factor
• E-commerce sites can exaggerate their descriptions of
products which can actually put people off from buying
online!
7. Security Issues
• Security is perhaps the biggest worry for
customers
• Customers worry that their financial details will
not be safe
• That the company will use them in an
unauthorised way
• That the level of security is insufficient
• That their Identity could be stolen by criminals