E-commerce is a technology that involves both buying and selling goods and services by manufacturers, or basically sellers, to their buyers aka customers or consumers through electronic technology or medium. It is a preference for many sellers and buyers currently as the world grows to embrace technology in every way possible. Though e-commerce has seen lots of growth owing to its advantages, there are a number of limitations which stand in the way and challenge its growth. This paper aims at discussing the major limitations on the growth of e-commerce and highlighting the potentially toughest limitations to overcome (Manzoor, 2010).
The major limitations on the growth of e-commerce can be put into two main categories. These include: technological limitations and non-technological limitations. Technological limitations are those that are more affiliated to technology while the non-technological limitations are those that have very little or nothing to do with technology (Laudon & Traver, 2016).
There are several technological limitations towards the growth of e-commerce which may include:
- The fast change in software tools in website development.
In order for e-commerce to grow, the latest software tools must be used. With the fast growth in technology, software tools are being developed every dawn, rendering others obsolete over a night. The requirement to have the latest software tools in e-commerce is making its growth hard to achieve (Laudon & Traver, 2016).
- Cost for internet access is quite inconvenient and expensive
Internet connectivity and access, which forms the core for e-commerce, is proving inconvenient and very expensive for some customers especially those in third world countries. For instance, in Africa, internet access-speed is still too slow yet very expensive. This means that internet connectivity is barely affordable thus buying and selling products which is the business of e-commerce is also unachievable (Patil & Bhakkad, 2014).
Non-technological limitations towards the growth of e-commerce
- Lack of confidence and trust
Often and by default, it is hard to have confidence and trust in a person who you have not met or seen physically. Trusting paperless and faceless transactions is quite hard. People will fear to do business and transact over the internet with people they have not seen as they cite fraud may occur for there is no one-one physical communication and agreement. Also customers are afraid that there may compromise in quality of the products they buy online (Laudon & Traver, 2016).
- Security and privacy
E-commerce privacy and security issues may often discourage trading online. Currently online fraud and cyber crimes are on the rise, and the fear to be a victim of such issues is real. Private information may be compromised and leaked while transacting and doing business online thus customers falling victims of online theft. There might be a slow growth in e-commerce courtesy to the fear to fall victims to fraud owing to lack of security for electronic transactions (Patil & Bhakkad, 2014).
- Computer Illiteracy
Many people may not be able to buy and sell goods online. This owes to their illiteracy to operate a computer or any technological device that can allow them transact online. The complications of learning complex computer programs and operating processes in order to indulge in e-commerce, are quite are stumble for the growth of e-commerce. The digital shopping experience may never overcome the social and cultural experience as people love to see and even have a touch before buying any product (Laudon & Traver, 2016).
For me, the toughest limitation to beat in e-commerce is the security and privacy issues. There is currently a lot of cyber-insecurity, hacking and online theft/fraud. The legal frameworks are not keen on such issues and customers and sellers are afraid that transacting online will result to them losing their private information hence falling victims of cyber fraud and theft, yet there are no any legal frameworks to help them claim. To overcome security and privacy issues to the ease of e-commerce-ing will be a tough one to overcome (Manzoor, 2010).
