Obstacles in Adopting e Commerce Applications

Obstacles in Adopting e Commerce Applications:- The study identified the main obstacles to the adoption of ecommerce applications, which include: organizational, financial, environmental, legal, behavioral, and technological obstacles. … The adoption levels of application that aimed at providing services and processing transactions were very low.

Obstacles in Adopting e Commerce Applications

  1. Lack of awareness
  2. Trust and Confidence
  3. The difficulty in re-engineering the business process
  4. Huge investment required
  5. Poor customers, Suppliers, and Business Partners’ Base
  6. Lack of trust and confidence
  7. Lack of legal and Regulatory Framework
  8. Lack of Knowledge of E-commerce
  9. Weak Payment and delivery system
  10. Taxation

  1. Lack of awareness:-

The primary obstacle to the adoption of e-commerce is the lack of awareness of e-commerce and the unavailability of access to telecom infrastructure at a reasonable cost. The organizations are unaware of the current developments or the role they could play in this new marketplace. The lack of awareness is closely related to the fact that the organizations in India are usually slower in adopting new technologies give the high investments necessary. Many of the business organizations are less risk-taking and are not ready to experiment.

  1. Trust and Confidence:-

Another main obstacle in the growth of the e-commerce market is the lack of trust and confidence in various aspects of electronic marketplace. Organizations fear doing businesses with international marketplaces, due to culture backgrounds and the fear of being deceived, due to lack of knowledge of new technologies.

  1. The difficulty in re-engineering the business process:-

It takes much longer than expected to position an entire organization to benefit from e-commerce. Reengineering paper-driven processes and convincing people to use the new system regularly are slowing the pace of implementation.

  1. Huge investment required:-

The investment required for converting information into useful electronic format and to develop new methods to conduct paper-based processes electronically acts as a major barrier for small organizations. In addition to the cost concerns, organizations also face the resistance to change within their organizations and among the customers and suppliers.

  1. Poor customers, Suppliers, and Business Partners’ Base:-

Another obstacle is the lack of a critical mass among customers, suppliers, and business partners. Until sufficient numbers of their main local customers or suppliers participate in online commerce activities, there is little incentive for organizations to become engaged in e-commerce themselves.

  1. Lack of trust and confidence:-

Lack of trust and confidence in various aspects of the electronic marketplace is another main obstacle to the e-commerce. Small organizations fear doing business with international marketplaces due to cultural backgrounds, fear of being deceived and due to lack of knowledge new technologies.

  1. Lack of Legal and Regulatory Framework:-

Conducting business through electronic networks raises numerous legal questions that include: the legal status and jurisdiction of international e-commerce transactions; intellectual property rights and copyright protection for digital content; the privacy of personal data; and the validity of electronic evidence in legal disputes.

  1. Lack of Knowledge of E-commerce:-

E-commerce can demand fundamental shifts in business strategies, operations, and technologies. Due to a lack of knowledge of e-commerce technologies, there is an internal resistance to change, and skepticism of the benefits of e-commerce among the business organizations.

  1. Weak payment and delivery systems:-

The majority of customers and suppliers do not use credit cards for their payments. E-commerce is associated with insufficient security safeguards and authentication processes. Customers are worried about giving their credit card details to vendors because of the security issues prevalent in the e-commerce.

  1. Taxation:-

Business organizations are more concerned about taxation because may to like to avoid taxes. Also, the taxation process is not transparent and often subjects to the discretion of evaluators. Malpractice is common practice to avoid taxes. The application of existing taxation on commerce conducted over the internet requires that tax principles be consistent with the established principles of international taxation, neutral with respect to other forms of commerce.

Also Read:-

What do you mean by e-commerce?

Why is e-commerce important? 

What are the functions of e-commerce?

Advantages and Disadvantages of E-commerce