Limitations of E-Commerce

Limitations of E-Commerce 

-Limitations of E-Commerce- EC limitations can be grouped into categories of technical and non-technical; most of the limitations mentioned again in various places in this book, as shown in brackets in the following items. Technical limitations of electronic commerce include:

• There is a shortage of system security, reliability, standards, and communication protocols
• There is insufficient telecommunications bandwidth
• Software development tools are still developing and changing rapidly
• It is difficult to unite Internet and EC software with applications and databases that exist today.
• Vendors may need special web servers and other infrastructure, in addition to a network server
• EC Some software may not be suitable for certain hardware, or can not be installed along with the operating system or some other components.

Along with time, this limitation will be reduced or resol

ved; proper planning will be able to minimize its influence. 

Among the many non-technical limitations that slow down the spread of the EC, the following is the most keterbatsan principal, according to a survey conducted by the Internet Week (1998). 

• Cost and justification. (34.8% of respondents). EC in house development costs can be very high, and errors caused by lack of experience may result in the presence of delay (suspension). There are many opportunities for outsourcing, but determining where and how to do it is not a simple issue. Furthermore, to justify the system, one must deal with a number of intangible benefits (such as better customer service as well as the value of advertising), which difficult to make quantity.
• Securities and privacy. (17, 2%). These two issues are important, especially in the area of ​​B2C, more specifically considered the issue of security seriously than actual right when applied inscriptions. Privacy measures could be improved constantly. However, customers looking at this issue as a very important issue, and the EC industry has a long-term and heavy task to convince customers that online transactions and privacy, very safe indeed.
• A little trust and user resistance (4.4%). Customers do not trust the seller without faces they do not know (sometimes they do not believe even though already knew), paperless transactions, and electronic money. Because of the shift from physical to virtual shop stores are likely to face its own difficulties.
• Factors other limitations. The lack of touch and taste them online. There are customers who must touch the stuff like clothes and want to know exactly the things they are buying.
• Many unresolved legal issues, government regulations and standards are not yet sufficiently established for a variety of circumstances.
• Electronic commerce, as a new discipline, still searching for form and is growing rapidly. Most people will wait until he is confident that they will enter the region is stable.
• There is not enough support services. For example, the absence of center illumination copyright for transactions EC, and EC tax specialists, are still rare. 
• In most applications, there are not enough sellers and buyers for EC operations profitable. 
• Electronic commerce can cause more Loosening of human relationships
• Internet accessibility is still expensive and / or not suitable for many potential customers. (But with Web TV, kiosk (cafe), and the constant media attention, critical mass will gradually evolve). 

Despite its limitations, the rapid development of EC was

  occur. For example, the number of people in the United States who were buying and selling shares electronically increased from 300,000 at the beginning of 1996 to about 5 million in the fall of 1998 Along with increasing experience and technological development, the EC towards the cost benefit ratio will increase, which in turn will increase the rate of adoption of EC. 

The potential benefits are probably not a convincing enough reason to start EC activity. Even more pressing for is actually a boost - a boost of business that might force the company to join the EC, as in the case just Egghead Software.