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The drawbacks of e-commerce
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
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.
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
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?
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!
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

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08 drawbacks of e-commerce

  • 1. The drawbacks of e-commerce
  • 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