The Future of Electronic Commerce
...y sell over the global Internet, sellers have the potential to market their products or services globally and are not limited by the physical location of a store. Internet technologies also permit sellers to track the interests and preferences of their customers with the customer’s permission and then use this information to build an ongoing relationship with the customer by customizing products and services to meet the customer’s needs(Electronic). E-commerce also has some disadvantages, however. Consumers are reluctant to buy some products online. Online furniture businesses, for example, have failed for the most part because customers want to test the comfort of an expensive item such as a sofa before they purchase it. Many people also consider shopping a social experience. For instance, they may enjoy going to a store or a shopping mall with friends or family, an experience that they cannot duplicate online. Consumers also need to be reassured that credit card transactions are secure and that their privacy is respected(Electronic). The future of electronic commerce depends on keeping the customers happy. Customer happiness depends the most on the customer’s level of trust in the company and their e-commerce service, whether or not their personal information can be protected from others. Alternatives to credit card use on the Internet have been established. One of these alternatives is digital cash or e-cash. In this arrangement, shoppers pay for a number of virtual credits through a single source, and then use those credits as dollars when shopping. After checkout, the online retailer ships the goods to the buyer and adds shipping costs to the purchase price. Few e-commerce sites, however, offer e-cash. The most common way to combat the misuse of customer information is tighter encryption of the information(Electronic). There are also other ways that the companies are gaining the trust of customers. Many companies post “privacy statements which use “privacy policies”. These statements explain exactly who will see the customers’ information. The U.S. government is considering passing legislation that requires companies to safeguard the private information of their customers. The growth of e-commerce also depends on other issues such as taxation and profitability. The Internet is usually free of taxes. The transactions did over the Internet usually transcend state and international boundaries so it is hard to impose taxes on those transactions. Governments who are losing money from uncollected ...