Question

A small business owner is sceptical about online transactions. Identify and briefly discuss three key challenges to e-commerce. Also, she is worried about the security of financial transactions online. Describe how you would allay her concerns?

Answer 1

Key challenges to e-commerce :-

The key challenges to e-commerce are -

a) Some of the business owners find it challenging to search for the right products to sell. It can be said that one can launch an e-commerce but finding the right products to make the business effective can be challenging.

b) E-commerce has a lot of window shoppers but not everyone tends to buy products from the site. It is sometimes difficult to track those users and remarket them the products of their choice so to make them buy those.

c) Business owners may face challenges to generate the required traffic and to make the online store visible for them.

Security of financial transaction :-

As security is the essential part of the transaction in E-commerce so the business owner needs to maintain confidentiality in the transaction. She could use various protocol such as SSL, SHTTP etc. So, these can provide authentication, encryption of transactions online.

Hope this helps :)