1. E – Commerce can be defined as trading of goods, services, information or anything else of value between two entities over the internet. It is the ability to conduct business electronically over the internet. It means managing transactions using networking and electronic means. It is a platform for selling products & services via internet. It is use for Electronic payment, e – distribution of products & services, Exchange of information, Pre and post – sales support, Customer relationship management. But there are some limitations of e – commerce. That are:-
1. Security:- the security risk in e – commerce can be-
• client / server risk
• data transfer and transaction risk
• virus risk
2. High start up cost:-The various components of cost involved with e – commerce are:-
• Connection:- connection cost to the internet.
• Hardware / software:- this includes cost of sophisticated computer, modem, routers, etc.
• Maintenance: – this includes cost involve in training of employees and maintenance of web-pages.
3. Legal issues: – These issues arise when the customer data is fall in the hands of strangers.
4. Lack of skilled personnel:- there is difficulty in finding skilled www developers and knowledgeable professionals to manage and a maintain customer on line.
5. Loss of contact with customers:-Sometimes customers feel that they do not have received sufficient personal attention.
6. Uncertainty and lack of information: – most of the companies have never used any electronic means of communication with its customers as the internet is an unknown mode for them.
7. Some business process may never be available to e – commerce:-Some items such as foods, high cost items such as jewelry may be impossible to be available on the internet.
Â