E-commerce has become one of the hottest trends in the arena of business today. The popularity of online shopping is increasing day by day. But at the same time, the risks involved in the buying and selling online too are increasing. Even though e-commerce has created a whole new world of buying and selling; still neither the buyers nor the sellers are free from the various risks involved in the online business industry.
First of all, as the scope of e-commerce is global, the products and services are sold all over the world through the internet. So chances are quite high of your coming across various international laws that you may not be aware of. Some countries may prohibit the sale of certain kind of products or may have distinctive business laws. Hence, not being aware of various international laws in this case might hamper your online business operations. Besides, the ignorance regarding the domestic business laws that govern the internet commerce could end up in bringing some unforeseen expenses to you.
Secondly, there is a very high risk of defrauded transactions over the internet. There are many online businesses which take the advantage of distance between customers to wrongfully lure them and sending them wrong products. Also, while making payments through credit cards, customers may have to face various security issues in terms of losing their card information as well as finances. However, it is not only the customers; the online vendors are at equal risk of being defrauded while accepting payments through personal checks or money orders. Hence, it is essential to do a thorough research before finalizing your business transactions online.
There also runs the risk of information in the online business. Online information can be damaged, stolen or released with unauthorized access to a website. Plus, there is also a high risk of several copyright infringements in regard of your online information which can prove to be really damaging.
Equally harmful is the technological risk in terms of your website or web business getting affected due to technical errors. There might be attack from computer viruses which can damage your website to a great extent. There might be some negligent errors or omissions in software design which can cause unauthorized access. Or there might be problems arising due to ISP server clashes.
Besides all these risks, e-commerce also has the disadvantage of lack of personal touch and interaction between buyers and sellers. As online business is done with machines and computers, there is no such thing as personalized customer relationships in it.
Although e-commerce development can certainly prove to be an eminent business prospect for both buyers and sellers; all that is needed is a proper understanding of all its pros and cons so as to avoid the various risks involved.