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 contactSome 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 legislationWhen 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