Ques- Explain Limitation of E-Commerce?

Limitations of E-Commerce
Despite the fact that E-Commerce brings allot of benefits it also has its own limitations which can be
classified into technological and non-technological.
1.

Technological limitations:
o

Lack of universal for standard, security and reliability.

Lack of bandwidth to suppoer E-Commerce especially for m-commerce.

Software development for E-Commerce is still maturing.

Existing applications and database brings difficulty to integrate Internet with EC

software.

Implementing E-Commerce require special servers to support it which may increase cost.

2. Non-technological limitations:

There are still many legal issues to be resolve.

Products are not able to be tested first.

People lack in trust when trading with strangers.

FRAUD cases are increasing.

QUES 2) write in your words: Future of E-commerce in India and in globe?

indian e-commerce industry has evolved over a period of time with innovations that have
changed the rules of the game globally. Cash on delivery (COD) is one such example. In a
country where credit card penetration is much lower than other developed markets and where ecommerce companies are still working hard to build trust among shoppers, introducing cash on

delivery has been one of the key factors for the success of the segment. At present, COD is the
preferred payment mode for close to 55-60% of all online transactions in the fashion and lifestyle
segment in India.
COD is here to stay owing to its convenience and its cultural affinity and will be a major part of
payment mechanisms for at least the next four to five years. Executing COD efficiently and
painlessly for the customer is critical to the success of any e-commerce player in the country.
Delivering experiences
Besides COD, e-commerce players need to focus on customer experience as a means to build
trust and confidence. Customer experience encompasses every interaction a customer has with
your service from placing an order to interacting with your customer service team, to the actual
delivery experience.
Providing a great delivery experience is one of the core aspects to delighting customers. This
doesnt necessarily mean constantly pushing the frontier on faster deliveries. Being a day behind
the fastest in the market isnt a big deal, but trust, consistency and reliability are more important.
The more faith the customer has in your delivery service, the more likely he is to buy again.
Delivering a good experience is critical not only to ensure repeat purchase from a customer, but
also for building a good brand image and word-of-mouth publicity.
Growing the base
Online shopping has seen a lot of traction in the last 12-18 months. India has almost 130 million
online users at present, out of which as many as 10% are engaging in online transactions. The
online user base is expected to cross 300 million in the next 2 3 years and a larger percentage of
people are expected to transact online by 2015. This large base will provide vast scope for ecommerce businesses to establish themselves in India.
3. Growing opportunities
4. Cities beyond metros are in the limelight for all the good reasons. On an average, almost 50
55% of our business come from tier 2 and tier 3 cities and I believe this ratio is similar across
other ecommerce companies in the country. With metro markets reaching saturation, I believe tier
2 and 3 cities are going to be the biggest drivers for ecommerce businesses in India in the not so
distant future. Building a robust supply chain is critical to efficiently fulfilling orders from these
cities and tapping their full market potential.The e-commerce industry is growing at a rapid pace
and changing the dynamics of the retail industry. In the coming years, e-commerce is expected to
contribute close to 8-10% of the total retail segment in India. This growth is bound to continue
provided e-commerce companies focus on innovating, building strong technology infrastructure
and delivering the best customer experience.

Quest3. What is E-commerce life cycle Model?

Quest- What are the risk In electronic payment system?

Electronic payment is a popular method of making payments globally. It involves sending money from technology, where information is relayed through networked computers from one bank to another.
Electronic payment systems are popular because of their convenience. However, they also may pose
serious risks to consumers and financial institutions.
Tax Evasion

Businesses are required by law to provide records of their financial transactions to the
government so that their tax compliance can be verified. Electronic payment however can frustrate the
efforts of tax collection. Unless a business discloses the various electronic payments it has made or
received over the tax period, the government may not know the truth, which could cause tax evasion.
Fraud

Electronic payment systems are prone to fraud. The payment is done usually after keying in a
password and sometimes answering security questions. There is no way of verifying the true identity of
the maker of the transaction. As long as the password and security questions are correct, the system
assumes you are the right person. If this information falls into the possession of fraudsters, then they can
defraud you of your money.

Impulse Buying

Electronic payment systems encourage impulse buying, especially online. You are likely to make
a decision to purchase an item you find on sale online, even though you had not planned to buy it, just
because it will cost you just a click to buy it through your credit card. Impulse buying leads to
disorganized budgets and is one of the disadvantages of electronic payment systems.

Payment Conflict

Payment conflicts often arise because the payments are not done manually but by an automated
system that can cause errors. This is especially common when payment is done on a regular basis to many
recipients. If you do not check your pay slip at the end of every pay period, for instance, then you might
end up with a conflict due to these technical glitches, or anomalies.
Quest-What is business impact analysis?
Business impact analysis (BIA) is a systematic process to determine and evaluate the potential effects of
an interruption to critical business operations as a result of a disaster, accident or emergency. A BIA is an
essential component of an organization's business continuance plan; it includes an exploratory component
to reveal any vulnerabilities and a planning component to develop strategies for minimizing risk. The
result is a business impact analysis report, which describes the potential risks specific to the organization
studied. One of the basic assumptions behind BIA is that every component of the organization is reliant
upon the continued functioning of every other component, but that some are more crucial than others and
require a greater allocation of funds in the wake of a disaster. For example, a business may be able to
continue more or less normally if the cafeteria has to close, but would come to a complete halt if
the information system crashes.
QUEST- What are difficulties and limitation of EDI?

Contrasted to XML, which is not strictly standardized, many consider EDI to have too many
standards.

There are various standards bodies who have developed 'standard document formats' for EDI
which can cause problems with cross compatibility.

These standards bodies also push standards revisions annually which could cause problems if you
have a more recent version of a document than a business partner.

EDI systems are extremely expensive making it difficult for small businesses to implement.

Many large organizations will only work with others who utilize EDI. This may limit the business
small companies are able to do with such organizations and limit trading partners.