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HIGH RISK ECOMMERCE – DRAWBACKS AND ADVANTAGES

E – Commerce or electronic commerce refers to any business transaction or activity that is carried out by electronic means. Therefore, the main or the most popular form of e – commerce is selling and buying of services and products over the internet. E – Commerce has the same fundamental principles as that of conventional commerce i.e. sellers and buyers come together so that they can swap commodities and money. However, instead of conducting the business transactions in the conventional method in retail stores or using telephone operators and mailing order catalogues, in e – commerce sellers and buyers do the business transactions through computer networks such as internet and intranet.

Through e – commerce consumers can enjoy convenience like never before. Consumers can do their shopping chores at any time of the day or night. They can compare the prices of the products and services at several online shops and get the best deal for their purchases and the best of it all, all these activities can be done by sitting at home or office. Products and services from around the globe are available through e – commerce. In some cases, which involve soft products like computer software application or a music file, the consumers can get the service or product immediately by downloading it using the internet.

For the merchants, e – commerce reduces costs and allows them to expand their business across the globe. It is not necessary to build, maintain and staff real stores and print and distribute the mail order catalogues. Automatic billing and order tracking systems cuts down additional labour, bringing down, the overall expenses. Moreover, if the service or product can be transmitted to the buyer over the internet then you will be able to save the distribution costs as well. Because internet can be accessed through out the world, an e – commerce web site owner will be able to sell his products globally without being limited by geographical boundaries. Online technologies allow sellers to collect information about the preferences and interests of the customers and then use the data to develop a long term relationship with their customers. Also, the online stores will be able to deliver highly customized services and products to meet their customer’s needs.

E – Commerce is not 100% prefect and has a few drawbacks. Several consumers are still not comfortable with the idea of making online purchases. For several businesses e – commerce is not suitable. For example, all the online furniture shops have failed because customers like to check how comfortable an expensive sofa is before they buy it. Many other people want to go out and shop because they consider it as a social experience. For instance, people enjoy driving to the retail store with family or friends. Such an experience cannot be simulated on the internet. For some other group of consumers, shopping is a stress buster. Consumers need to be sure that online credit card dealings are safe and secure so that their financial futures are not thrown in to jeopardy.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.