The Challenges of E-Commerce

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Table of Contents

Introduction
E-commerce challenges facing Bigbook
The economic challenges
Challenges from regulators
The technical challenges
Internet regulations
Conclusion
References

Introduction

The world currently conducts most of its businesses electronically by putting into use the services of various electronic commerce solutions.

Some of the deals are transacted through e-commerce; they include people buying books on the Internet, a firm ordering and paying for supplies through electronic auctions; hotel rooms are being booked online and people can easily withdraw money from an automated teller machine.

Others include using the services of telephone interactive systems, given by the seller and enjoyed by a business client. Business companies have to establish a working agreement with the electronic commerce solutions.

The components of the electronic systems include electronic data interchange translator that conveys the information provided by companies into a format that can be understood by customers, or value added network services that deal with the storing and transmitting business messages, among others.

Relaying messages in either a bisynchronous manner or asynchronous way falls under communication in the components.

Electronic commerce has taken a very crucial role in the consumer market. This system of doing business allows business transactions anytime and anywhere in the world taking into consideration the fact that, it is reasonably cheap.

E-commerce challenges facing Bigbook

Bigbook is a company that went online with its brand of books a few years ago. This has made it possible for clients to access its books online; they make payment, at the same time enjoying the benefit of the delivery of the books ordered.

The economic challenges

The e-commerce industry that has advanced information technology has created a competitive marketplace by making it open. However, there are challenges; some of them Bigbook faces are in areas that include providing a secure seamless site with adequate infrastructural support (Kalakota & Winston 1997).

This support is very important in the transmission of business information that is integrated in a reliable way. Bigbook clients use their web site domain to order and procure the books they need. The consumers use this site to procure goods and services.

Challenges from regulators

The other e-commerce challenge Bigbook faced is failure by its clients in identifying e-commerce transactions. This arises from the failure by the company to implement its e-commerce program fully. This is attributed to the complex nature of the program introduced by the regulators such as SEC and FCC.

The four infrastructural dimensions also pose various challenges Bigbook is currently facing. Bigbook pays a lot for the services rendered to them by electronic commerce solutions (Bell 2002).

Due to the new nature of the business in the current competitive markets, the services are implemented without clear justification of the costs. Bigbook has always outsourced these services as developing the same is very complicated.

The driving force behind this project for Bigbook is improving customer service and relations. The company also hopes to benefit from the competitive advantages that come due to increased advertisement. It has been very difficult to calculate the monetary benefits that are enjoyed by the company.

The technical challenges

The technical dimension comes with its own challenges in spite of the expenses. This distracts the customer, making it difficult to attend to urgent orders. There was the time when Bigbook’s site was hacked jeopardizing the security of their information.

This created distrust among some of the customers since it may be difficult for them to know when the information posted comes from hackers or the company itself. Bigbook also takes a long time to upgrade their system.

The consequence of this are felt when the company wants to deliver online books in bulk to be printed by customers, thus reducing their reliability. Bigbook has also failed to integrate all its sections to the Internet (Daley 2002). This means that the company has not fully digitalized its operations.

Internet regulations

It has been difficult on many occasions to track down the hackers and have them prosecuted. This makes the company bear the expenses that accrue because of the damages to the customers.

The taxes charged on installing these services are unjustified. The legal parameters needed following the increased rate of cyber crime have complicated the process by making it bureaucratic.

Conclusion

The analysis of the challenges faced by Bigbook is a proof to show that e-commerce is developing fast but has its own serious challenges. The challenges range from the technological aspects, as well as social, legal, and economic ones.

Bigbook seems to be hit very hard by the legal aspect as the regulations by SEC and FCC regarding the legal validity of transactions, taxation, rights of intellectual property rights, and policing squarely affect Bigbook from two fronts.

However, following due diligence when negotiating contracts with electronic commerce solutions will help to streamline the e-commerce industry. The regulations by FCC appear strict but they are good for the industry which is growing extremely fast.

The government through its agents should also consider making consultations with the business companies and electronic companies that give solution services before laying down its regulations and policies.

References

Bell, G. (2002). On-Ramp prospects for the information superhighway dream. New York: Harvard Press.

Daley, M. (2002). The Digital divide. New York, NY: Ashgate Publishing Ltd

Kalakota, R., & Winston, A. (1997) Electronic Commerce. Reading, MA: Addison-Wesley.

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