Saturday, January 19, 2008

Disadvantage of e-commerce

Disadvantages of E-Commerce
Taxes: How would you tax a business selling goods over the Internet? This question arise when e-commerce became more popular. Should consumers pay sales tax on web purchases? If the business and customer are in different states, who state tax would be applied? During the end of the 20th century, the government was trying to ask this question. If web purchases was free from tax, then brick-and-mortar stores will lose business but customers will pay more over the web since shipping and handling fees are applied. Also, small businesses may lose out both ways because they may not have resources to buy expensive software to figure out the different state taxes for each customer.
Security: The biggest disadvantage of e-commerce is the issue of security. Even with the improvements with data encryption, there are still the danger of someone getting a hold of your personal and financial information. Also, some sites don't have the capabilities to prove authentic transactions. If someone gets your credit card, they can go to one of these sites and purchase items without proving who they are. All they need is your name and credit card number which is already printed on the card.
The use of e-commerce can violate these ACM codes such as 1.2 which states, "Avoid harm to others." The risk of identity theft is one problem that businesses who use the concept of e-commerce of their site. An customer who is a victim of this can have their credit history ruin, even their identity stolen. Also, 1.7 of the codes states, "Respect the privacy of others" Since there is not real standard for security enforced for online transactions, many sites do not have high encryption. Many other sites often illegally collect buying statistics on their customers without permission. When taxes were a bigger issue, code 1.4 was violated. It stated , "Be fair and take action not to discriminate." Business owners complain that transactions over the internet are not tax and that businesses who did not have physical stores were being discriminated against.

1 comment:

Matuk said...

Very sweet and short article about disadvantage of e-commerce.