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Krish 35

The document outlines the limitations of e-commerce, including security concerns, customer experience issues, and logistical challenges. It highlights the impact of intense competition, rising customer acquisition costs, and legal and ethical concerns on the industry. Despite its advantages, these limitations hinder the full potential of e-commerce and require improvements in technology and customer service to enhance the overall experience.

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12 views14 pages

Krish 35

The document outlines the limitations of e-commerce, including security concerns, customer experience issues, and logistical challenges. It highlights the impact of intense competition, rising customer acquisition costs, and legal and ethical concerns on the industry. Despite its advantages, these limitations hinder the full potential of e-commerce and require improvements in technology and customer service to enhance the overall experience.

Uploaded by

dharmikrabadiya19
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 14

LIMITATIONS OF E-COMMERCE

Krish Dobariya
TYBBA (H)
35
IT (II)
Limitations of E-commerce

E-commerce refers to the buying and


selling of goods and services over the
internet. Growing importance in the
modern economy. Despite advantages,
several limitations hinder its full
potential.
Security Concerns

Cybersecurity Threats Data Breaches Customer Trust

E-skimming attacks The average cost of a 64% of consumers


increased by 26% in data breach reached express concern about
2023, targeting $4.45 million in 2023, data privacy when
sensitive customer impacting business shopping online,
data. reputation and hindering adoption.
customer trust.
Customer Experience Limitations
Lack of Personal Touch Product Suitability Issues Delivery Challenges

45% of customers 22% of online 69% of consumers


prefer in-store purchases are report issues with
experiences for returned due to late or damaged
personalized incorrect fit or deliveries, impacting
assistance and appearance, customer satisfaction.
immediate product increasing costs for
evaluation. businesses.
Dependence on Internet &
Technology
 Requires a stable internet connection, which is not always
available.
 Websites may crash during high traffic, affecting sales.
 Technical failures in payment gateways may cause
transaction failures.
 Not all consumers are tech-savvy, leading to usability issues.
Logistics & Delivery Issues

 Delays in shipping due to logistics


problems.
 High shipping costs for small orders.
 Issues with damaged or lost goods.
 Complicated return and refund
policies.
Competition and Market
Saturation
12-24M 52%
Sites Price Comparisons
Millions of e-commerce 52% of online shoppers
sites exist globally, compare prices on
creating intense multiple sites, driving
competition for market down profit margins.
share.

60%
CAC Increase
Customer acquisition costs
have risen by 60% in recent
years, making customer
retention crucial.
Legal & Ethical
Concerns
• Privacy concerns with personal data collection.
• Laws andregulations vary across countries, making
compliance difficult.
• Copyright infringement and unauthorized reselling
of products.
• Ethical concerns regarding counterfeit products
and
misleading advertisements.
Technical & Maintenance
Challenges

 Regular updates and maintenance required for website


functionality.
 Need for investment in cybersecurity infrastructure.
 Expensive software development and technical support.
 Managing server downtimes and data storage issues.
E-Commerce: Lack of Personal Touch
and Trust

Impersonal Interactions Building Trust Remotely

• Online shopping lacks the personal • Challenges in building trust with


touch of physical stores. Building customers remotely can reduce
trust remotely is more difficult. conversions.
• Absence of face-to-face interaction • Need for strong online reputation
• Challenges in reading non- • Importance of customer reviews

verbal cues
Shipping Issues and Delivery
Delays
Damaged Goods Delivery Delays
Products can get damaged Delivery delays and inaccurate
during transit. tracking cause frustration.

Complex Returns
Return policies and reverse
logistics pose challenges.
E-Commerce: Competition and
Price Wars
Intense Competition

Impact on Profit

Product Differentiation

E-commerce faces intense competition and price wars. Profit margins are squeezed,
and product differentiation is difficult. Businesses must find ways to stand out.
Conclusion
While e-commerce provides convenience and global reach, its
limitations pose
significant challenges.
Security, logistics, legal, and trust issues must be addressed.
Future improvements in technology, regulations, and customer
service can enhance the e-commerce experience.
Thank you…

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