Ecommerce Business Risk

Perception System Pvt Ltd.




Unavoidable E-commerce Risk Factors Should be Aware About

In an E-commerce industry,

business owners face risks, which

are absolutely unavoidable.

Businesses are leaping into e-

commerce and many of them are ill

prepared to handle the downside.

Some have barely considered the

dangers and look only for the

crock of gold under the e-rainbow.





0 2000 2003 2005 2008 2010 2012

Information Risk

Content on web

page exposing web

publisher to

libel, defamation

of character,


Copyright, patent,

or trade secret


violating by

material used by

web site




access to a web

site, online

information about

employee or

customer is

stolen, damaged

Flight of


property due to

employees moving

to competitors

Information that

has been changed or

inserted in

transmission is

processed leading

to erroneous


Credit card


intercepted in

transit is disclosed

or used for

fraudulent purposes

Worldwide legal

exposure resulting

from use of creative

material (e.g. names)

that violate law. of

countries outside of

the home country

Electronic bulletin boards

containing defamatory statements

resulting in liability or embarrassment

Transaction Risk

All the business transactions and deals

going on through online methods, you being a

businessman can also face the problem of

attacks. There are different malicious attacks

like ハラヤ virus, worms and Trojan

horse, that your system can be a prey to.

You should always have a good anti-virus and

keep it updated to impede any such kinds of


Operational Risks


Google changes ts

search engine

algorithms and your

website traffic drops by

50 percent overnight

Price Competition

Your largest competitor

drops prices by 30

percent and your sales



A container load of

products horn an

overseas supplier Is

stuck in customs

because of a change in

policy or an error in the

shipping manifest


Your website hosting

company suffers a

series of failures and

your stores are offline

for hours.


Your top.selling product

line is suddenly pulled

from the market and you

are faced with a huge

loss of revenue.


You sell products on

Amazon that it does not

carry but it suddenly

sources the products

itself, at a much lower


Unauthorized access

While you may not be aware of and trust your

employees the best, you might never know who

accesses your data and account illegally.

Unauthorized access to your data can also be

done by outsiders. Poor configuration of

systems and poor encrypted transmission are

few factors that can let others access your

confidential business data illegally. You

must also be careful to choose strong


Technology Risk

Negligent errore

or omissions in

software design

Internet service

provider (ISP)

server crashes

Software content

risk that violates

a copyright or is


Third party


credit card

information in

transit causing

breeches in

security for

online payments.

Intercepting and

copying or

changing nonハラヤ

credit card




Risk due to

excessive ISP

outages or poor


Risk of


integrating e-

commerce system

with internal


Inability of

customer or


computers to

handle graphical


Security Risk ___________________

Security is perhaps the broadest topic when

it comes to an E-commerce site, but the risks

of security could have devastating effects to

an organization if an incident were to

occurハラヤespecially if the site transmits or

stores cardholder data. A single incident

which involves the breach of sensitive

cardholder data could involve large fines.

Business Risk

Web page content exposes web

publisher to libel, defamation

of character, slander

Worldwide legal exposure

resulting from use of information

in violation of homeハラヤcountry laws

Risks related to payment to web

site developers and disputes

between developers and clients

Electronic bulletin boards

containing defamatory statements

resulting in liability

Using web sites to conduct

illegal promotional games, such

as a sweepstakes or contests

Impact on business due to

intellectual property lost due to

employees moving to competitors

Changes in supplier relationships

re: data access, data ownership,

distribution strategy, and

marketing tactics

Inconvenient return policies ハラヤ

lack of coordination with

physical system

Risk due to unprotected domain

names which are usurped by

other organizations

Improperly integrating e-

commerce systems with internal

operational processes


Url: http://www perceptionsystem .com

ID: info@perceptionsystem.com

Address: 2nd Floor, Samudra Annexe,

Off C.G.Road Navrangpura,

Ahmedabad-380009 Gujarat, INDIA

Perception System Pvt Ltd

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Ecommerce Business Risk

shared by mosesaaron on Apr 17, 2013 in Business

Ecommerce Business Risk

shared by mosesaaron on Apr 17, 2013 in Business


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In recent times, e-Commerce has grasped the attention of various businessmen as it allows them to sell their products and services online. Without complete information and knowledge about e-Commerce, ...
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