Maharashtra State BoardHSC Commerce 12th Board Exam
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Disadvantages of E‐Business. - Organisation of Commerce and Management

Answer in Brief

Disadvantages of e‐business.

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Solution

 E-business (i.e., electronic business) is derived from the terms “e-mail” and “e-commerce”. It refers to the trading of goods and services through computer systems and online networks. There is no exchange of cash or money across the counter and the payment is made online with the help of payment gateways.

Disadvantages

  1. Lack of Personal Touch : Seller and consumer cannot have face to face contact while purchasing goods and services from e – business. The personal touch in doing business i.e. meeting face to face is not possible in e – business. 
  2.  Lack of Security - Online trading and transactions are highly prone to internet risks and online threats. The possible threats could be leakage of credit/debit card details to the third parties, anonymity of the trading people, virus attacks and hacking and phishing.
  3. Government Interference : To set us an e – business there are some minimum procedures to be followed. There may be a monitoring from the government and authorities that could lead to increase the interference in selling the goods.
  4. Transaction Risk : In e – business system, transaction risks such as supply of inferior quality of goods, supplied products not matching with the sample expected, high prices, defects in products, cheating, etc. may happen and we cannot be denied.
  5. Delay in deliver of goods : If we go to shop and purchase the goods then we will get the goods immediately. But in case of e – business there could be difficulty in delivering the goods. Lack of communication can cause wrong delivery of goods. 
  6. Technical Drawbacks - Online trading requires basic computer knowledge and internet familiarity. This often creates distress for the people who do not know how to operate computer. Furthermore, this often divides the society (termed as ‘digital divide’) into computer literates and computer illiterates. Besides, sometimes due to technical problems or server downtime, websites stop functioning; this may add to the frustration of the consumers and may even discourage them to revisit the website.
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