Problems Of Social E-Commerce Essay


Discuss about the Opportunities & Problems of Social E-Commerce.



Electronic commerce or e-commerce is considered to be term in respect of any kind of business that is having the involvement of transferring information across the internet. It is covering a range of various kinds of businesses, ranging from retail sites that are customer based to sites for business exchanges that do the trading in product and services amongst organizations. At present, it is considered being one of the most significant aspects regarding the internet that is emerging. E-commerce is allowing the customers in the exchanging of products and services electronically without having any barriers regarding time or distance. There has been a rapid expansion of e-commerce over the past 5 years and will be continuing at this rate, or even accelerate as well.

Business-to-business or B2B is referring to electronic commerce amongst businesses rather than amongst a business and a customer. B2B businesses are mostly dealing with huge number of different businesses, either as suppliers or consumers. To carry out the transactions in an electronic manner will be providing enormous competitive advantages in comparison to traditional processes. When proper implementation is done, e-commerce is considered being faster as well as cheaper and having more convenience in comparison to the traditional processes of bartering products as well as services (Sharma 2014). Moreover, e-commerce have also led to the aspect of developing the electronic marketplaces in which probable customers as well as suppliers are brought together for conducting trade that is mutually advantageous.

In the current world of digital marketing, e-commerce is playing a major role regarding the customer’s purchase behaviour. The e-commerce industry is rapidly growing because of the high internet penetration as well as sophisticated electronic devices. On the other hand, there are also certain major problems as well as challenges that are to be faced by an online business enterprise. Issues such as safety as well as security of online transaction of money is considered being one of the biggest challenges that is hindering the smooth extension of the online industry (Jannsen 2014).

Amazon has been the biggest success story in the field of e-commerce post 5 years of incurring losses and more than 1 billion USD in losses, it finally became profitable. Many e-commerce service providers in Australia are having the desire of becoming giants within the sector of e-commerce in Australia. Within the country, these providers are faced with some very tough challenging aspects that rose because of various concerns like poor infrastructure, unclear tax structure, lack of internet accessibility regarding a majority of population as well as absence of awareness related to these organizations. There are various factors that are contributing towards the incurring of heavy losses by the e-commerce companies. However, these companies are still in business as because, there is huge potentiality in this sector (Sousa 2014). As a result, various e-commerce companies did the development of their individual creative ways for attracting the Australian customers that includes the options such as EMI, Cash on Delivery and so on.

Therefore, this study will assist in finding out the challenges that are being faced by the e-commerce organizations within Australia and determining the measures that are employed in meeting them (Klapper 2014).

Project Objective

The objective of the research is associated with the aspect of acknowledging the major challenges that the e-commerce companies within Australia is facing as well as determining the measures that are employed in meeting them.

Project Scope

The scope of the project is associated with the aspect to do the identification of the opportunities as well as challenges that will have positive influence on the performance of the organizations that fall under the category of e-commerce.

Literature Review

There has occurred the analysis of the influence of e-commerce on customers, business as well as education. There has been the examination of major issues that are being posed by e-commerce in respect of international trade, which is used as a starting point of the World Trade Organization agreement as well as General Agreement on Trade in Services that is having relevance to e-commerce. E-commerce will be offering unique scope for both developing as well as developed countries (Da Costa 2016).

In an apparent way, increasing number of online users in Australia is having the willingness for making purchases via the internet. The overall e-commerce industry is on the edge of experiencing a high development in the next few years. E-tailing as well as digital downloads are having the expectation for growing at an increased rate, whereas online travel will be continuing to do the ruling of the major fraction of the share of market (Wang 2015). Because of the growing initiatives regarding e-commerce as well as brand awareness, e-Tailing did the experiencing of decent development.

Moreover, e-business has changed the methods within as well as between organizations. With the proper implementation, the technologies of e-commerce will be resulting in the aspect of improving the business processes as well as increasing the effectiveness. The growth that the internet as well as other global online networks is experiencing has, therefore, created completely new sets of international as well as national trading associations. This as a result, gave rise to the insight that e-banking as well as e-commerce are at present considered being an unavoidable aspect of financial services (Wamba 2014). It assists in enabling multiple purchasers as well as sellers in coming together on a common platform as well as conducting business without making any compromises regarding individual needs as well as relationships between the participants in a very quick manner (Yu 2014). E-commerce is doing the creation of new scopes for the global economy and at present, e-commerce industries are increasingly becoming an essential element of business strategic aspect as well as strong medium in respect of economic development.

There advantages of e-commerce in respect of the customers comprises of the aspects that include convenience, time-saving, easy comparison, coupons and deals and so on, whereas in case of the businesses, it will be including the growth in the consumer base, growth n sales, expansion of the business reach, more easier recurring payments options, transactions that are occurring instantly and so on (Chiu 2014).

The challenges of e-commerce in respect of the customers comprises of the aspects that includes privacy as well as security, quality, costs that are hidden, delaying the receiving of products, absence of personal communication, requirement of internet accessibility and so on, whereas in case of the business, it will be including the concerns relating to security, issues regarding credit cards, requirement of additional cost as well as proficiency in respect of e-commerce infrastructure, requirement of adequate internet services, and so on (Fan 2015).

The major advantages of e-commerce from the seller’s viewpoint are to increase the revenue as well as to reduce the operation and maintenance costs via internet. These will be including the aspects towards,

  • Increasing the revenue
  • Reducing the operation and maintenance costs
  • Reducing the purchase and procurement costs
  • Raising the loyalty and retention of the customers
  • Reducing the costs of transportation
  • Developing the relationships between customer as well as supplier
  • Improving the process speed regarding selling
  • Improving the internal and external communication
  • Developing the organizational image as well as brand image (Morganti 2014).

Research Questions

Primary Question

What are the challenges that are faced by the e-commerce industry and the opportunities that are required in solving them?

Secondary Question

  1. What are issues as well as research gaps that are faced by the e-commerce industry?
  2. What need to be recommended for overcoming challenges faced by the e-commerce industry?

Research Design and Methodology

Qualitative research

The qualitative research have been proposed for revealing the range of behaviour as well as the perceptions of the target audience that will be driving it in respect of particular topics or concerns. It is using in-depth analysis of small groups of individuals for guiding as well as supporting the aspect of constructing the hypothesis. The outcomes of the qualitative research are considered being descriptive (Daniel 2015).

In respect of the sample size, 5 managers of the e-commerce organization will get considered. The data collection method will be considered to be the interview method and in this respect, there will be 5 open-ended questions for each of the 5 managers. The responses that are received from the respondents will be having a descriptive analysis.

Quantitative research

The quantitative research is considered being a formal, objective as well as methodical process where there occurs the use of numerical data for obtaining information about the e-commerce organization.

In this regard, a survey will get conducted by providing the respondents with questionnaires. There will occur the collection of empirical data and it will be used for achieving the research objectives. The sampling technique that will be taken into consideration is the random sampling technique and the sample size will be 100 employees of the e-commerce organization. The research approach that will get considered is the deductive research approach. There will occur survey and questionnaire design. The quantitative data analysis process will be considered being the statistical data analysis method (Bannister 2015). For the reliability and validity of data Anova test, co-relation as well as regression will be considered.

Research Limitations

There can occur certain limitations of the research that are mentioned as under,

  • Budget deficit – The survey that will get conducted regarding a company might be faced with the limitation of budget deficit regarding the research. There might occur the possibility that sufficient budget for conducting the research is not there, which will therefore, hinder the research process (Standing 2014).
  • Biased attitude of the respondents – The respondents of a company might not provide the correct answer of all the questions that will be there in the questionnaire due to their biased attitude regarding certain aspects. This might not be able to do the portrayal of the exact scenario of the company and therefore, the outcome of the survey cannot be considered to be correct (Wamba 2015).
  • Shortage of time – This is considered being another limitation in respect of the research process. When there will occur a shortage of time, then the survey might be conducted in a hurried manner and many important part might get skipped, which will result in receiving an incomplete feedback from the respondents (Sharma 2014).
  • Sample size – While taking into consideration the sample size, it might occur that certain respondents are left out who would have considered being the most suitable respondents for certain questions in the questionnaire. Since, they were not chosen while randomly picking the respondents, the answers for all the questions in the questionnaire might not get correctly received (Zhou 2013).
Time Schedule (Research Plan)


Week 1

Week 4

Week 8

Week 12

Week 14

Week 16

Selection of the topic

Reviewing the literature

Collecting the data (Survey & Secondary Data)

Reviewing the data

Analysis of the data


Final Submission


The e-commerce industry will be gaining huge popularity in the electronic business world in the coming years. It has provided a strong impact on the traditional system of business and to change the life of individuals by making it easier. While it is providing certain beneficial aspects for the customers as well as sellers, e-commerce is giving challenges to traditional business in respect of competitive position. Convenience is considered being one of the beneficial aspects that customers are receiving from e-commerce and as a result, developing the satisfaction of the customers. In this context, it can be stated that the customers are having the ability of placing a purchase order from any place if they have an internet connection. It is recommended for the e-commerce business providers that they should provide significance regarding every customer by providing smooth service and different payment options. They are also required providing more functions that should be available online. Other beneficial aspects include increased product offerings as well as increased geographic reach, although the business of e-commerce is faced with a lot of challenges for expanding their business.


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