Introduction
Companies and individuals electronically link up together for a purpose. Millions of organizations and individuals have internet access in their place of work and at homes. Electronic commerce (e-commerce) has grown rapidly with a great impact to the society where people are able to transact business anytime and from anywhere at an acceptable cost. This essay will define definition of electronic commerce and identify its subsets. The essay paper will also discuss three key challenges to electronic commerce.
According to , electronic commerce is a tool to address desires of organization and individuals by enabling delivery of information services in performing business transactions using internet technologies with the purpose of cutting down cost, improving quality, and increasing delivery speed. E-commerce has sub sets that are combined to form the technology and include; a product or service to be offered, place to sell the products that is shopping cart to add items, merchant gateway for online connection during electronic transfer, and fulfilment for order report generation .
Despite electronic commerce success, it also has some challenges. First is technological challenge where by customers are not trusting the technology due to its security concern. Hackers steal customers’ information such as credit cards information. Also reliability of network infrastructure is downgraded thus making online transaction somehow slow. Secondly, is economical challenge whereby the cost of implementing e-commerce is a bit high due to lack of expertise, and outsourcing is expensive to an organization. Also, not every buyer and seller have internet access thus being an economical challenge. Lastly, is social challenge where internet privacy issue is required to be addressed. Client’s confidential information need to be protected by organization offering e-commerce which is a challenge to them .
Electronic commerce is rapid growing technology that ensures delivery of information and business transaction that is convenient to client, but there is need for it to be looked at in terms of technological and social challenges.
Work cited
Bingi, Prasad, Ali Mir and Joseph Khamalah. "the challenges facing global e-commerce:A multidimensional perspective." Information Systems Management Journal 17.4 (2000): 26-34.
