Question

What are the disadvantages of e-business?

Discuss the limitations of E-business

Answer 1

E-commerce suffers from the following drawbacks:

1. High Risk: Internet start-up companies often encounter significant risks. Many high-paid executives who left their positions to start their internet ventures ended up losing substantial amounts of money. The dot-com bubble collapsed because of issues such as the absence of a solid revenue model, poor customer service, and other challenges.
2. Shortage of Talent: There is a significant shortage of skilled professionals capable of effectively managing e-commerce. Additionally, traditional organisational structures and weak work cultures hinder e-commerce’s growth.
3. System and Data Integrity: Ensuring the integrity of the system and protecting data are major challenges in e-commerce. Various computer viruses can lead to unnecessary delays, as well as issues with file backups and storage. Additionally, there is always the risk of hackers gaining access to files and damaging accounts.
4. Lack of Security: Security is a major issue in e-commerce transactions. Online customers hesitate to share their credit card details due to concerns about potential fraud.
5. Vulnerability to Competition: A business organisation that provides information about itself and its products becomes susceptible to risks. Competitors may gather business intelligence on the organisation’s website.
6. Operation Problems: Customers may lose trust in e-commerce when a company fails to meet its promises. There have been cases of websites crashing, product mix-ups, and delays in product deliveries.
7. Unsuitability: E-commerce is not suitable for certain products. People may be hesitant to purchase items like furniture, jewellery, and other products online because they prefer to test and physically examine them before making a purchase.
8. Limited Personal Touch: E-business lacks the personal interaction found in face-to-face communication. As a result, it is less ideal for products like clothing, toiletries, and others that require a high level of personal engagement.
9. Ethical Problems: Many companies use an ‘electronic eye’ to monitor employees’ email accounts, computer files, and the websites they visit. The practice infringes on their privacy.