Introduction

This essay seeks to evaluate and analyze the barriers of ecommerce. Before we
evaluates the factors, the definition of ecommerce according to Chaffer (2015), is
the use of electronic transmission medium to cater to buying as selling of products
or services between a business and third party. However, according to Kalakota and
Whinston (1997), there is a range of different perspective.
Communication - Delivering information of payment, product and service by
electronic means.
Business- the automation of business workflow and transaction
Service increasing speed, reduce cost and quality service
Online Buying and selling of products and information online.
E commerce Barriers
Putting the business on the web leads to a high chance of the company being
exposed to hackers and high possibilities of fraud. Using the macro environment
-SLEPT Framework, we evaluate the causes of this.
Social Lack of awareness in ecommerce benefits/ High pressure of suppliers
and customers
Legal Absence of legal and regulatory system / Ecommerce Standards
Economical Lack of financial infrastructure/ Cost is too high
Political Low level of readiness/ Changes in government regulations and
policy
Technological Lack of skilled staff/ Ecommerce infrastructure
However, the main reasons to barriers in ecommerce still falls under 3 factors which
is the cost, security problems and lack of skills.
For Example, in business
perspective, putting a business on web requires high set up and maintenance cost.
This includes the research and development, staffing, infrastructure development
fee, web designers fee. Etc. Small companies has no financial strength to pay for all
these cost which lead to a barrier and be locked out of the online business platform.
Another point is that business tends to have low sales figure after setting up an
ecommerce business. This is due to the lack of skilled staff/ IT personnel to maintain
a good ecommerce infrastructure. Mostly if business is dependent on a third party
web designers, this can be a disadvantage as commonly, the designers do not cater
and responsive to the needs of the business which will then lead to a barrier for
customers when websites can appear an not readily accessible for customers.
In Customer perspective, security and privacy can be a problem. This happens when
litigations uses the customers information for unintended purposes and when
unauthorized person access customer confidential data for wrongful purposes, both
of these can falls under interfering of customers information. Lastly, another crucial
point to evaluate for ecommerce barriers is the technical issues such as bugs,

viruses and connectivity problems. During these times when operation of the
website is recovering, customers might prefer to look for alternatives. This is when
business has a high chance of losing revenue and customers. Therefore, having a
skilled staff to maintain business is important to avoid all these factors.
Evaluate and Solution
Responsive Design

Advisory and Strategy

Digital Marketing

Conclusion