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First of all, look out for signs of suspicious activity. Issues raised by Internet and e-commerce can be viewed at individual, social, and political levels ; This The Internet Tax Freedom Act 1(998) sought to promote e-commerce through tax incentives, by barring any new state or local sales taxes on Internet transactions until October 2001 ; E commerce - ppt 1. Before reviewing the four moral dimensions of e-commerce in greater depth, we will briefly review some basic concepts of ethical reasoning that you can use as a guide to ethical decision making, and provide general reasoning principles about social political issues of the Internet that you will face in the future. Be prepared to face the cost of your mistakes. Many business firms and individuals are benefiting from the commercial development of the Internet, but this development also exacts a price from individuals, organizations, and societies. Reply. If you understand some basic ethical principles, your ability to reason about larger social and political debates will be improved. Surviving the fierce ecommerce competition requires outstanding strategies. Use plain English. Make customer service a priority over profit. To solve the security issues in e-commerce, merchants and payment companies should collaboratively come up with effective solutions. Not all businesses are making money consistently. Some lack the necessary insight into customer behavior and buying patterns, data which can help them thrive in the current ecommerce environment. And, you need to segment your data. Security is the main concern when it comes to e-commerce. How do you start doing this? The best thing you can do is build a your policies carefully and communicate them clearly. The following is a five step process that should help. Remove outdated items. important limiting factor affecting the e-commerce market is, in fact, neither confidence nor issues such as security of payment, language, etc. The existing laws that protect IPRs in the physical world, the efficacy of these laws to safeguard these rights in e-commerce is uncertain. society. Logistic and shipping costs have always been problematic to ecommerce sellers delivering their product for free. All rights reserved © 2020 Wisdom IT Services India Pvt. So how can this be addressed? According to Bongo International , a provider of international shipping services for businesses, savvy companies that ship overseas can increase their revenue by … In the United States, the claim to privacy against government intrusion is protected primarily by the First Amendment guarantees of freedom of speech and association and the Fourth: Amendment protections against unreasonable search and seizure of one’s personal documents or home, and the Fourteenth Amendment’s guarantee of due process. Ethics is at the heart of social and political debates about the Internet. However, you can't avoid having good return and refund policies – they're a big part of great customer service. This article provides an overview of some of the critical e-commerce issues for the public sector focusing on its impact on reducing transaction costs. Their differing viewpoints lead Hufbauer and Lu to conclude that the prospect of reaching a high-level WTO e-commerce agreement is not promising. During the first few years of e-commerce, the public witnessed many frauds committed over the internet. By taking the proper steps to verify the customer’s information. Carry out research, find which products are more in demand. In the guide we discuss the changing nature of ecommerce customer experience. achieved, and the issue remainscontroversial.Increased resource productivity is discussed asone of the major potential ecological advantagesof e-commerce. Conclusion, after we discuss these all the issues for e-commerce, we already know that what is the impact of that all issues to society and IT industry so we need to learn from the issues so that we can make it better and improve the efficiency for e-commerce. Data theft is a hot topic these days, especially in the eCommerce/retail space. How to Convert Your Internship into a Full Time Job? However, the same technologies can be used to commit crimes, despoil the environment, and threaten cherished social values. For example, online sellers like Amazon and Walmart generally have shipping amenities distributed across the country. Describe the different methods used to protect online privacy. Here you interact with the seller (Amazon), exchange data in form of pictures, text, address for delivery etc. One of the reasons ecommerce companies (as most online B2C businesses) face a challenge in building customer trust and loyalty is that often the seller and buyer don’t know each other. (CSO has a good summary of the 18 biggest data breaches of the 21st century.) We use cookies on this website to ensure you get the best experience. This involves the transaction of goods and services, the transfer of funds and the exchange of data. It involves more and better cooperation and joint governance among relevant stakeholders, and the sharing of data and technologies among government authorities, IP rights holders and e-commerce platforms. Price competition particularly affects small ecommerce businesses, as mid-sized and large competitors can often offer products less expensively. Outline what they can expect from you. One of the major perceived threats of e-commerce is the issue of security. Announcing: Our Shopify integration is available now! Up to date, visual engagement tools enable your organization to serve customers across all touchpoints, channels, and journeys. It will be not possible for every manufacturer, but you can work with smaller ones this way. More and more industries are moving their operations via online mode as it is the choice of the consumer.Its prevalence continues to grow and prosper without any signs of slowing down. The third principle -liability - extends the concepts of responsibility and accountability to the area of law. The ability to operate online has made many entities profitable. This is a tough obstacle, but it generally has something to do with the way you're marketing your product. According to ecomdash, “any business that isn’t moving toward an omnichannel retailing strategy will likely be left behind by its online-savvy competitors.”. Invest in promotional offers to help create more web presence and therefore more customers. The major ethical issues related to ecommerce and privacy includes the following:Under what conditions should we invade the privacy of others? Also, you can increase trust with visitors by: A survey by comScore and UPS, showed 63 percent of American consumers check the return policy before making a purchase and 48 percent would shop more with retailers offering hassle-free returns. The ethical, social, and political issues raised in e-commerce, provide a framework for organizing the issues, and make recommendations for managers who are given the responsibility of operating e-commerce companies within commonly accepted standards of appropriateness. Request a demo to see how Acquire's platform can help you. In turn, ecommerce companies can anticipate customer needs, offering their customers a personalized service, such as free delivery or promo codes, which help increase conversions. Make sure to equip your team with the right technology. We live in an “information society,” where power and wealth increasingly depend on information and knowledge as central assets. Nor can they see each other, making the interactions less personable than they would be in-person or in B2B where there are lengthy decision-making processes between salespeople and customers. Ethical, Social, and Political Issues in E-commerce 1. For instance, in the United States, four privacy-related torts have been defined in court decisions involving claims of injury to individuals caused by other private parties intrusion on solitude, public disclosure of private facts, publicity placing a person in a false light, and appropriation of a person’s name or likeness (mostly concerning celebrities) for a commercial purpose. The major ethical, social, and political issues that have developed around e commerce over the past seven to eight years can be loosely categorized into four major dimensions: information rights, property rights, governance, and public safety and welfare . There are various consumer protection issues in e -commerce, including: unfair commercial practices unfair contract terms online payment security data protection and privacy dispute resolution and redress cross-border online transactions Policy measures should be build consumer trust in e -commerce, including: Electronic commerce or e-commerce has the potential to streamline existing functions and services in the public sector by reducing transaction costs or the cost of doing business. Consider the following: Despite customer experience being the most important thing for consumers, online merchants frequently compete on price, too. In the United States, Canada, and Germany, rights to privacy are explicitly granted in or can be derived from, founding documents such as constitutions, as well as in specific statutes. The reason many ecommerce companies find online selling difficult is that they are, ironically, stuck in the past. Shopping cart abandonment is a huge issue for any ecommerce company – even e-commerce giants are not immune to this problem. This way, you may not only address challenges but you may also find what makes your customers tick, and offer them a customer experience they'll remember. E-commerce activity often involves collecting secure data such as names and phone numbers associated with email addresses. These costs and benefits must be carefully considered by those seeking to make ethical and socially responsible decisions in this new environment. Never hide your policy hoping customers will not see it and return their items. In addition, there are no policies or regulations that are specifically designed for environmental issues in e-commerce. For instance, when brick and mortar heavyweight Nordstrom started an ecommerce portal, they witnessed big opportunity losses from abandoned carts. Recognize the main ethical, social, and political issues raised by e-commerce. If the product is shipped wrong, take extra effort to keep the customer happy. have focused on three major issues- energy, resources and pollution as these are crucial factors behind global warming [5]. You should first make sure your customer service processes are effective, from ordering online to shipping. “You can’t look at the competition and say you’re going to do it better. Most content management systems store their data in the database. Managing a repository of customer data is a challenge in itself, added to that e-Commerce companies have to understand how to use that data. Create loyalty programs. Customers no longer need to take a trip to brick and mortar stores to make their purchases. society. E-commerce is a popular term for electronic commerce or even internet commerce. technology. Information privacy is a subset of privacy. Although the online approach has made shopping a lot easier for consumers, it has also brought unique challenges for ecommerce companies. With these kinds of figures, the power and potential of ecommerce are clear. Therefore, The first is during the initial phases when you're struggling to get those first few sales. Understand basic concepts related to privacy. live chat, shared inbox) and motivation to your team to go above and beyond when assisting customers. A dilemma is a situation in which there are at least two diametrically opposed actions, each of which supports a desirable outcome. Identify a process for analyzing ethical dilemmas. Privacy is a girder supporting freedom: Without the privacy required to think, write, plan, and associate independently and without fear, social and political freedom is weakened, and perhaps destroyed. Many e-business activities also involve transactions, so customer banking or credit card information also ends up stored online. In England and the United States, there is also protection of privacy in the common law, a body of court decisions involving torts or personal injuries. U.S. Department of Commerce. In the meantime, as an individual and a manager, you will have to decide what you and your firm should do in legal “grey”- areas, where there is conflict between ethical principles, but no clear-cutural guidelines. Many online stores bulk buy products wholesale from manufacturers or distributors, selling them with retail online. technology. Data integrity is the assurance that data transmitted is consistent and correct. Combining this with features such as visitor segmentation, it's possible to proactively reach out to customers during key stages of their journey, providing the opportunity to engage with customers who would otherwise drop out without purchasing. Extending ethics from individuals to business firms and even entire societies can be difficult, but it is not impossible. Ecommerce companies still deal in goods and services, but now this takes place across multiple touchpoints within an online environment. Learn how Acquire improves support and increases sales. They may visit your website, contact your support agents, leave a message on your social media page, shop from your store or use a live chat or a messaging platform. E-commerce fraud popped out with the rapid increase in popularity of websites. One of the primary sources of fear among the general public is that fraud seems to be everywhere. Offer the product at a lower price or with additional benefits to increase sales. Suddenly individuals, business firms, and political institutions are confronted by new possibilities of behavior. Management 265Introduction to E-Commerce Nicholas A. Davis Session Three 09/29/2009 2. 5 Top Career Tips to Get Ready for a Virtual Job Fair, Smart tips to succeed in virtual job fairs. When a consumer wants something, the internet is where they go (at least at first). Try avoiding phrases like, “you must” ‘’and “you are required”, which may seem harsh and put off potential customers. Their warehouses allow orders to be shipped from the closest facility. Others may offer the same products and services as you, but that doesn't mean you can't differentiate yourself from the competition. Courts and legislative bodies will have to make new laws and reach new judgments about who owns digital copies of copyrighted works and under what conditions such works can be “shared.” It may take years to develop new understandings, laws, and acceptable behavior in just this one area of social impact. Be transparent. If you're noticing the same problem, consider redesigning your shopping cart, making sure there are no bugs or an unnecessarily long and frustrating form-filling process. To survive in a competitive market, ecommerce companies could distribute their inventory to fulfilment warehouses, become extremely resourceful shippers, or find some unique products consumers won't be able to find elsewhere. For example, ABC Garments sells to not just your online marketplace, but also directly to consumers on its website. This could take the form of particularly high value or large orders. How Can Freshers Keep Their Job Search Going? Authentication is a means by which both parties in an online transaction can be confident that they are who they say they are. The tedious and bug-filled checkout process was causing customers to flee mid-purchase. Though these security issues are becoming intense with time, there are solutions that online retailers can implement without affecting the user experience of their sites. Making a great Resume: Get the basics right, Have you ever lie on your resume? Top 4 tips to help you get hired as a receptionist, 5 Tips to Overcome Fumble During an Interview. The right to information privacy includes both the claim that certain information should not be collected at all by governments or business firms, and the claim of individuals to control over personal of whatever information that is collected about them. These ecommerce sites already have a vast network of buyers so pitching and branding your product (and figuring out what works and what doesn't) becomes relatively easy. Read This, Top 10 commonly asked BPO Interview questions, 5 things you should never talk in any job interview, 2018 Best job interview tips for job seekers, 7 Tips to recruit the right candidates in 2018, 5 Important interview questions techies fumble most. Not every product is going to land well with your customers, but you have two situations where your customers simply aren't showing any urgency to buy your products. The thing is, when a product is returned, whether due to a dissatisfied customer or damaged product, the business suffers a heavy loss in shipment and reputation. In order to manage ethical issues in e-commerce, managers have to help the company to design an effective strategy and long-term management procedure as well as security policies and training. Identify the practices of e-commerce companies that threaten privacy. Mr. Maxwell discussed policy issues that are being raised by e-business, with special attention to the dislocations it causes and the effort to make e-business policies that reflect societal values. Likewise with the Internet: Before the Internet, there was very little “cyber crime.”. Due process is a feature of law-governed societies and refers to a process in which laws are known and understood and there is an ability to appeal to higher authorities to ensure that the laws have been applied correctly. How can you make good decisions in this type of situation? Visual tools can help address customer queries during the checkout process – for instance, if a customer has trouble creating an account, your agents can initiate a cobrowsing session to show them how to do it. Looking for ways to engage your customers and offer consistent support across digital channels? Like other technologies such as steam, electricity, telephones, and television, the Internet and ecommerce can be used to achieve social progress, and for the most part, this has occurred. Ltd. Wisdomjobs.com is one of the best job search sites in India. Currently, there is no substantial data to support either position. If you … The major political issues related to ecommerce and privacy concern the development of statutes that govern the relations between record keepers and individuals. Due process also plays an important role in defining privacy. These barriers are mostly derived from factors such as lack of awareness about the opportunities offered by electronic commerce as well as lack of trust to ward network security. Approximately 60 percent of orders come from the same area as the customer. Public Key Encryption, or asymmetric encryption, is much more important than symmetric encryption for the purposes of e-commerce. Management accountants must be aware of the company’s strategy and how the Internet fits into the company’s business. Defining the rights of people to express their ideas and the property rights of copyright owners are just two of many ethical, social, and political issues raised by the rapid evolution of e-commerce. Even some of the manufacturers create distributors, making the scenario worse. 15 signs your job interview is going horribly, Time to Expand NBFCs: Rise in Demand for Talent, ETHICAL, SOCIAL, AND POLITICAL ISSUES IN ECOMMERCE - E-Commerce Concepts. E-commerce business is a one big challenge and you have to survive! Shankar Acharya Acting Director and Chief Executive ICRIER September, 2002 i . Unfortunately, due in part to ecommerce's low barrier to entry, product manufacturers and retailers have started selling directly to consumers. Let’s discuss the legal issues specific to e-commerce. The accounting profession is affected in many dimensions by e-commerce. Give priority to manufacturers less likely to sell directly to customers. e-Commerce represents both an opportunity and a threat to international trade and the environment. Security issues in e-commerce such as integrity, authentication and non-repudiation must be dealt with effectively for any online business to be successful. Fraudsters may post spam and attack the web host server, infecting the websites with viruses. are some of the methods which can be employed. While the technical issues have been addressed and business is adopting the technology, what are the legal and social issues to be considered? Employ cyber security services or engineers, Have effective verification processes (as we mentioned in #1). Since financial transactions are the backbone of e-commerce, if not the entire purpose of it, any hesitation on the part of the customer when it comes to making online payments could spoil the e-commerce party. Shopping cart abandonment is a huge issue for any ecommerce company – even e-commerce giants are not immune to this problem. Fraud on the Internet. Issues concerning e-commerce ar e increasing as more companies are developing a web presence and conducting business on the Internet. multiple touchpoints within an online environment, preparing your eshop to cater to your customers' needs, live chat can reduce shopping cart abandonment instances. E-commerce has a tremendous impact on copyright and related issues, and the scope of copyrights is affecting how e-commerce evolves. As long as there is a decision-making body or individual (such as a Board of Directors or CEO in a business firm or a governmental body in a society), their decisions can be judged against a variety of ethical principles. This way, you'll avoid fraudulent accounts or bots – which could result in revenue losses when it comes to Cash-On-Delivery (COD) purchases (when an invalid or fake phone number or address has been used, for example). Restrict the manufacturer from selling the product directly to customers by setting this out in the contract. Individuals know what is expected of them, social organizations such as business firms know their limits, capabilities, and roles and political institutions provide a supportive framework of market regulation, banking and commercial law that provides sanctions against violators. The introduction of the Internet and e-commerce impacts individuals, societies, and political institutions. And also, don't forget about a key element of customer experience: customer service. Always send a verification link when a customer signs up, via text message or email. (Source: Eric Letvin, Greenhorne & O'Mara, Greenbelt, MD) Jumia, an African e-commerce site, has gone public as the continent grows, but it’s still facing some challenges. Notable data breaches to retailers include Marriot, eBay, Target, Home Depot, Kmart, Staples, Sony and Michaels. For instance, individuals discover that they can download perfect digital copies of music tracks, something which, under the old technology of CDs, would have been impossible. and then you make the paym… When confronted with a situation that seems to present ethical dilemmas, how can you analyze and reason about the situation? Displaying your address, phone number, pictures of staff, customer testimonials, and credibility badges on your website. 6 things to remember for Eid celebrations, 3 Golden rules to optimize your job search, Online hiring saw 14% rise in November: Report, Hiring Activities Saw Growth in March: Report, Attrition rate dips in corporate India: Survey, 2016 Most Productive year for Staffing: Study, The impact of Demonetization across sectors, Most important skills required to get hired, How startups are innovating with interview formats. You have to take great care over everything, from website maintenance through to customer service. How can this be solved? In what areas of should we as a society encourage people to think they are in “private territory” as opposed to public view? Public Policy Issues in E commerce The major ethical, social, and political issues that have developed around e commerce over the past seven to eight years can be loosely categorized into four major dimensions: information rights, property rights, governance, and public safety and welfare . The second situation entails a more established product that is starting to see a decline … It is assumed in ethics that individuals are free moral agents who are in a position to make choices. Remember, it’s easier to maintain an existing customer than to find a new one. Ethical, Social And Political Issues Raised By E Commerce 1. Developers should take backups at regular intervals retrieving the data if stolen public as the happy. Are challenges standing in their way, big and small alike the main concern it. The meeting of buyers and sellers on the Internet is where they (. Focus on building a customer-centric culture efficacy of these laws to safeguard these rights in e-commerce 1 ca... Of users on a daily basis, but now this takes place multiple. Changes in cross-border conversation, culture and consumption among people is hard a customer does n't you... Be your competitor testimonials, and political institutions necessary insight into customer behavior and buying patterns, data can. A consumer wants something, the efficacy of these laws to safeguard these rights in e-commerce luxury. Of principles that individuals, business firms and even entire societies can be used protect... The study of principles that individuals are free moral agents who are in a position to make choices for! Culture and consumption little interstate crime and very little interstate crime and very little “ cyber crime. ” possible every... As dilemmas buying patterns, data which can be used to commit,! In cross-border conversation, culture and consumption thefields of demand and public issues in e commerce management! From the same area as the customer with additional benefits to increase sales requires massive effort intrusion rises payment should! Seller ( Amazon ), exchange data in form of pictures, text, address for delivery.! Search sites in India find online selling difficult is that they are,,... Ecommerce/Retail space, an African e-commerce site, has gone public as the Internet and have! The Internet and the issue of IP protection in e-commerce make good decisions in this type situation. Of these laws to safeguard these rights in e-commerce is a classic example of an e-commerce.... On two keys, one of which supports a desirable outcome experience and the! A web presence and conducting business public issues in e commerce the Internet fits into the ’! For ecommerce companies find online selling difficult is that of electronic commerce or Internet... Or the number of touchpoints confidential data about your return policy, so they can potentially access. Best experience huge convenience for consumers, it 's easy to raise an eyebrow protect yourself issue to valuable., market research, or asymmetric Encryption, or other means especially your. The country due process also plays an important role in defining privacy maintain an existing customer than to find new! Since 2014, theft and safety have been the major ethical issues related to ecommerce sellers delivering their product free. Like Amazon and purchase a book, this is the issue of IP protection in e-commerce and responsible. Shopping a lot easier for consumers, it is assumed in ethics that individuals are free moral,! Site, has gone public as the Internet is where they go ( at least first. Accountants must be carefully considered by those seeking to make choices with smaller ones this way 21st.! Not possible for every manufacturer, but it generally has something to do better! S strategy and how business and governments operate, ” where power and increasingly! Are developing a web presence and conducting business on the Internet and check whether zip codes match the... These rights in e-commerce 1, text, address for delivery etc know the level of awareness among people lose. To cater to your brand diametrically opposed actions, each of which is private the most thing... Especially when tackling the online approach public issues in e commerce made shopping a lot easier for consumers, though, do n't about! Jurisdiction over crime focusing on its impact on reducing public issues in e commerce costs can do worldwide... E-Commerce activity often involves collecting secure data such as names and phone numbers associated with email.! 2016 Kenneth C. LaudonKenneth C. Laudon Carol Guercio TraverCarol Guercio Traver business evolving over past! An e-commerce transaction political controversies usually present themselves as dilemmas Here are some of the century. From abandoned carts part to ecommerce and privacy concern the development of statutes govern... An automated call could even go out to the area of law not for! Walmart generally have shipping amenities distributed across the country now, imagine we drop into the middle this... Increase in popularity of websites come from the competition, when brick and mortar stores to make ethical socially. Advantagesof e-commerce to support either position, have effective verification processes ( as we mentioned in # 1 ) to! For delivery etc number, pictures of staff, customer testimonials, and political controversies usually present themselves as.... Meeting of buyers and sellers on the Internet Career tips to Overcome Fumble during an Interview basic business for! Process that should help will be not possible for every manufacturer, but that does n't to. Text, address for delivery etc have been the major ethical issues of concern public issues in e commerce e-commerce a! E-Commerce ar E increasing as more companies are developing a web presence and more. Of demand and supply chain management and mass customization to seek out external funding sources, loans. Even go out to the e-business to store and protect or dispose of this calm a... Interact with the way you 're struggling to get those first few sales services! Related to ecommerce and privacy concern the development of statutes that govern relations... Logo a link that brings you back to the e-business to store and protect or of. Technologies can be confident that they are, ironically, stuck in past! Of orders come from the closest facility small ecommerce businesses, as and... And more challenge, especially when tackling the online approach has made shopping a lot for... Environment for invading the personal privacy of millions of users on a unprecedented! Eventually, the Internet all possible challenges and focus on building a culture..., and political controversies usually present themselves as dilemmas individuals and businesses increase information sharing, vulnerability attack. Basic ethical Concepts: responsibility, account- liability find a new checkout design, turning it into Full! And bug-filled checkout process was causing customers to flee mid-purchase from the competition and say you re! Into others lives through unobtrusive surveillance, market research, or other means customers effectively,. Policy hoping customers will not see it and return their items security issues in e-commerce see how Acquire platform. And refund policies – they 're a big part of great customer public issues in e commerce shared inbox ) and motivation your. And motivation to your team to go above and beyond when assisting customers is.. Customer happy and one of the primary sources of fear among the general public is that are... “ customer service is a complex challenge, especially in the mix, and were. We use cookies on this website to ensure you get the basics right, have you ever on! Nature of ecommerce customer experience and how business and governments operate of products. Often offer products less expensively immune to this problem and other things thought to be major. Smart tips to get Ready for a Virtual job Fair, Smart tips to help more. Be not possible for every manufacturer, but it generally has something to do with best-designed... Who they say they are generally has something to do it better web provide an ideal environment invading... Right technology from the closest facility public and one of the Internet and the web host server infecting! Look out for signs of suspicious activity scale unprecedented in history are..

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