Disadvantages or Limitations of Internet retailing

Disadvantages or limitations of Web retailing

Internet retailing is advantageous in many ways. However there are also certain limitations or disadvantages that one cannot ignore completely. The following are some of the disadvantages or limitations of web retailing.

Disadvantages or limitations of Internet retailing

Disadvantages or limitations of Internet retailing

1.Unfulfillment

The major issue facing internet retailers is “unfulfillment” or the in ability of the business to deliver the customer orders accurately. Most deliveries by internet companies contain some errors. Goods ordered for special occasions like Christmas, Diwali etc., are delivered late. Internet companies out source such services to parcel couriers.

Companies that send out small and easily deliverable packages like DVDs, software or books have a fulfillment advantage. But delivery of a bulky assortment of goods within specific time when the customer is not present is a major constraint.

2. Security concerns

A major barrier to the use of the internet for the transaction is security. There is a need for secure electronic transaction which will allow credit card-holder and merchant to authenticate each other during an internet transaction.

3. Network limitations

In electronic retailing, the visual impact of website is very important. But it raises conflicts. Graphic and multimedia attributes assume that the customer end has access to a high specification PC. Customers are frustrated when they experience slow data transfer.

4. Demographics

Web applications should demonstrate clear relevance to the customer base. The pages on the website should be targeted at specific online customer groups. These pages should be dynamic enough to cope with the changing interests of customer groups.

5. Culture

Customer should feel comfortable with electronic shopping. However, purchasing over internet is faught with difficulties. Customers are reluctant to supply their credit card details over the internet. They consider it to be too risky and fear breach of security. So, popular web browsers have incorporated secure payment encryption algorithms. Experiments on payment without having to transmit card details over the internet have been unsuccessful.

6. Easy to Hack

It is often easier for hackers to obtain credit card details, passed over a cordless or mobile telephone.

7. Social Acceptance is doubtful

The commercial success of internet technology depends upon the fundamental question of social acceptance. Only when users of technology are motivated to become customers, electronic commerce will flourish.

8. Size of Internet Market

While the home PC market is growing at a rapid speed, the home internet market should also match the trend. It means that people should become very familiar not only with personal computers but should have access to internet and use it quite frequently.

Leave a Reply

This site uses Akismet to reduce spam. .




Recent Posts


Related pages


characteristics of authoritarian leadership styleprocess costing calculationadvantages of stratified samplingdefinition of currency swapcalculation of profitability indexlabor rate variance exampleicici bank formsparticular average loss in marine insurancehow to prepare a flexed budgetpayables turnover periodwhat are vertical mergersarr in accountingmanpower planning meaningrapid urbanisation in indiarole of gatt in international tradeadvantages and disadvantages of a dictatorshipfactoring and forfeitingcalculate profitability ratiotrade promotion examplesdefinition of mercantile lawintroduction of sebiwho is an autocratic leaderstratified and cluster sampling differencecheque negotiable instrumentwhat is cluster sampling methodwhat are the elements of valid contractexplain moastratified cluster sampling examplewho is a depository participanttotal gearing ratiopolicies of rbicharacteristics of job costingform for dissolution of partnership firmadvantages of cash flow forecastdrawer bank meaningfob accounting definitionaverage collection formulaautocratic leadership style in nursingtypes of advertisements in newspapersicici bank establishment dateinternal auditing meaningcoporate veilhuman resources advantages and disadvantagespiercing the corporate veil definitionmethods of venture financingunderwrite securitiesdefine debenturesmgmt toolsimportant industries in indiameaning of byproductconsignee meaning hindiadvantages and disadvantages of autocratic managementadvantages of advertising in magazinesprogressive regressive and proportional taxesbenefits of scmdescribe three roles of financial intermediariesprivity of contract casesdemerits of decentralisationtypes of debentures pdfjoint hindu family business advantages and disadvantagessundries accountingfunctions of retailers and wholesalersadvantages and disadvantages of functional organisationcharacteristic of capitalist economyirda insurance companiesmerits of decentralizationfeatures of perfectly competitive marketmixed market economy advantages and disadvantagesstock market fluctuationcentralization and decentralization of organizationmeaning of urbanizationadvantages mixed economygat agreementdistinguish between void and illegal contractswhy are financial intermediaries so important to an economyretained profit advantagesadvantages and disadvantages of purposive sampling methodwhat does labour turnover mean