Challenges of E-Commerce

750 Words3 Pages
Challenges of e-Commerce Student Name University of Phoenix Challenges of e-Commerce With the current information age and the movement to mobile devices, mobile communications, and instant communication through email, social media, and websites; business managers and organizations may face many challenges with e-commerce especially when migrating a traditional ‘brick and mortar’ company to the evolutionary ‘click and mortar’ business model e.g. BestBuy. Click and mortar is “a type of business model that includes both online and offline operations, which typically include a website and a physical store” (Definition of Click and Mortar, n.d., para. 1). There are also businesses that are solely internet based and e-commerce business models e.g. Amazon.com and Zappos. Challenges Unique to e-Commerce Amazon has faced several e-commerce challenges that include online advertising and marketing challenges along with unprofitable beginnings of the business, and the need to create a trust among the customers and providing a check out procedure that will not confuse or frustrate customers. It is important for management to consider strategic alignment of the e-commerce strategy and the organization mission, values, and business strategies to encourage business operations transparency even if the organization is a web-based infrastructure. In recent years, Amazon has ramped up its “cloud computing” services, or its business of leasing out of server space in its large data centers around the world so that small businesses don’t have to risk such up-front capital investment. It has also greatly expanded its third-party marketplace, where merchants all over the world can set up their own virtual stores on Amazon.com and sell their products alongside Amazon’s — all the while leveraging Amazon’s large customer base and credit-card-processing services (Matthews,

More about Challenges of E-Commerce

Open Document