Current Topic in Retail Management

Limitations of electronic commerce include many aspects of technological, non-technological and ethical issues. There are many issues but I will be discussing my favorite non-technological issues that have had a personal impact on my life. Security and privacy concerns, lack of trust in the transaction and people, regulations and global competition, and legal and public policy issues are the non-technological limitations that I feel have the biggest issues. There are always going to be people that are afraid of change (Turban et al, 2018, pp. 29-30).

I found a really good blog that talks about several of these issues. This blog agrees that one of the main limitations is security. This is because some people (regardless of age) are leery of posting their private information online. Over the years, security encryption systems have advanced but people are still scared that someone will hack the system and obtain their information and take their money and/or identity. Unfortunately, there are still websites that say their systems are secure when they are not (Bhalia 2017).

The blog also discussed that there is no longer privacy when online purchases are made as the buyer has to give up detailed information including their mailing address (physical or PO Box) and that some sites will only ship to a physical address. They also have to provide a telephone number. A lot of online sites will then sell your information to telemarketers or sites will illegally collect the consumer data without permission (Bhalia 2017).

There is also a really good paper that was written by several scholars that goes on to say that 63% of online customers refuse to share personal information because of lack of trust and 69% of customers refuse to register and sign out as guests because they do not want their information to stay on file. Customers like to have some control over their personal data and who gets to see it. They also say that a customer’s trust level positively affects their behavioral intentions. All this means is that if they trust the website, they will give positive feedback and recommend it to others (Neama et al, 2016).

Data protection means your company needs to be registered under the Data Protection Act to le lawful when collecting personal information on your site. If a customer requests that their information be removed from the company’s site then by law the company has to remove the information. As the owner of an electronic commerce site, being entrusted with the personal information of their customers is one of the hardest things to keep safe. A privacy policy needs to be posted in an easily viewable location on all electronic commerce sites (Ecommerceguide, 2017).

Our book states that privacy rights protection is the most emotional issue in electronic commerce. The younger generation is less concerned with privacy and post private information on the internet willingly. This makes it easier for marketers and marketing communications to contact individuals all without breaking privacy policies (Turban et al, 2018, p. 580).

I myself am leery of both the lack of security and privacy issues because I have had my banking information and enough of my personal data stolen to be hacked. I now have to keep all of my credit bureau accounts locked and it is time consuming to call and have them unlocked for specific credit checks to be run. When I needed a new car in 2017 it took an hour to get the accounts unlocked and then when I needed an increase on our Christmas credit card in 2018 it took longer. We pay off the card in full after the holidays but needed extra on it for our little girls Christmas and it took 3 hours to get the holds removed long enough to get a 300 increase on the card. I have also personally seen the lives of older individuals who only have their retirement income lose everything because their cell phone company database was hacked and they lost everything and now in their 70s are having to be on state assistance.

Bhalia also discusses fear and product suitability. Even though online shopping has become very popular with all age groups, there are still those that doubts. She states that this is due to the customer not being able to examine the product and isn’t able to understand all the features and attributes without someone explaining it in understandable terms. This is one main reason that many people prefer to shop in stores than online. Product suitability just adds to the fear section by saying that the product sent may not eb the one that was viewed on the website as some sites say they will send a comparable item if the one you ordered is not in stock (Bhalia 2017).

Another blog talks about customers having lack of trust in the online retailer because they may not get the package in the time, they think it should be delivered. It also discusses that there may be a bad internet connection and their order may not get placed or even worse be placed multiple times and it take a while to get everything straightened out with the needed refunds (25 Advantages and Disadvantages, 2018).

There is a really good guide that discusses the use of fraud. This can be by using false details or even by using someone else’s payment information. This usually ends up with the company being out the product and having to refund the payment source the funds back. Then others use all real information and then say they never received the item. This makes the company have to either send another product free of charge or issue a refund. This can really damage your business both because of the financial hardships but also because word of mouth and bad reviews. This guide also goes on to talk about ways to promote faith by having a clear outline on how payments are takes and also a clear refund and return policy (Ecommerceguide, 2017). I feel that this guide would really help ease worries of consumers that are worried about placing orders online and having bad reactions in the past.

I have found that the younger generation does not have as big a fear about ordering online because that has been the common practice all their lives. They also enjoy the facts that they can order from the comfort of their homes or offices and not have to go deal with people to get the items that they want and need. The older generations do not like change and if they don’t have to change, they are happy doing things the original way. There are people to this day that do not and refuse to have bank accounts for fear of having their information stolen. Different areas of the country have different opinions.

In different parts of the world habits, traditions and cultures differ. There can also be language barriers that affect both the buyers and sellers to the point