Ecommerce Business Risk

Perception System Pvt Ltd.



ECOMMERCE

BUSINESS

RISKS



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.





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300

200

100

0 2000 2003 2005 2008 2010 2012



Information Risk



Content on web

page exposing web

publisher to

libel, defamation

of character,

slander



Copyright, patent,

or trade secret

infringement

violating by

material used by

web site

developers



After

unauthorized

access to a web

site, online

information about

employee or

customer is

stolen, damaged



Flight of

intellectual

property due to

employees moving

to competitors



Information that

has been changed or

inserted in

transmission is

processed leading

to erroneous

results



Credit card

information

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

attacks.



Operational Risks



SEO



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

suffer.



Shipping



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



Hosting



Your website hosting

company suffers a

series of failures and

your stores are offline

for hours.



Supplier



Your top.selling product

line is suddenly pulled

from the market and you

are faced with a huge

loss of revenue.



Marketplace



You sell products on

Amazon that it does not

carry but it suddenly

sources the products

itself, at a much lower

price.







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

passwords.





Technology Risk



Negligent errore

or omissions in

software design



Internet service

provider (ISP)

server crashes



Software content

risk that violates

a copyright or is

libelous.



Third party

intercepts

credit card

information in

transit causing

breeches in

security for

online payments.





Intercepting and

copying or

changing nonﾊﾗﾔ

credit card

information

during

transmission



Risk due to

excessive ISP

outages or poor

performance



Risk of

improperly

integrating e-

commerce system

with internal

databases



Inability of

customer or

supplier

computers to

handle graphical

downloads



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



PERCEPTION SYSTEM PVT LTD

Url: http://www perceptionsystem .com

ID: [email protected]

Address: 2nd Floor, Samudra Annexe,

Off C.G.Road Navrangpura,

Ahmedabad-380009 Gujarat, INDIA



Perception System Pvt Ltd