Question

Rajkumar runs a traditional business. According to him, e-commerce has many disadvantages. Which of the following is the disadvantage of e-commerce?

Options

• It is easy and inexpensive to start e-commerce.

• It provides access to consumers all over the world which helps to increase sales.

• Transaction risk is high.

• Customers can buy round the clock, 24 hours, seven days in a week, instead of during shop hours.

Answer 1

Transaction risk is high.

Explanation:

E-commerce increases the risk of transactions, including fraud, payment failures, identity theft, and data breaches, which threaten financial loss and customer trust. These online-specific vulnerabilities are a key disadvantage compared with traditional face-to-face commerce.