Isaac Newton’s 3rd Law of Motion, ‘For every action there is an equal and opposite reaction’ suggests that for all the beneﬁts there are limitations to e-commerce. These again will be dealt with according to the three major stakeholders – organizations, consumers and society
Limitations of e-commerce to organizations
Rapidly evolving and changing technology, so there is always a feeling of trying to ‘catch up’ and not be left behind.
Under pressure to innovate and develop business models to exploit the new opportunities which sometimes leads to strategies detrimental to the Organization. The ease with which business models can be copied and emulated over the Internet increase that pressure and curtail longer-term Competitive advantage.
Limitations of e-commerce to consumers
Computing equipment is needed for individuals to participate in the new ‘digital’ economy, which means an initial capital cost to customers.
A basic technical knowledge is required of both computing equipment and navigation of the Internet and the World Wide Web
Lack of security and privacy of personal data. There is no real control of data that is collected over the Web or Internet. Data protection laws are not universal and so websites hosted in different countries may or may not have laws, which protect privacy of personal data.
Electronic processes replace physical contact and relationships. Customers are unable to touch and feel goods being sold on-line or gauge Voices and reactions of human beings
Limitations of e-commerce to society
Breakdown in human interaction. As people become more used to interacting Electronically there could be an erosion of personal and social skills, which Introduction to e-commerce 15 might eventually be detrimental to the world we live in where people are more comfortable interacting with a screen than face to face.