E-Commerce Considerations SWOT

Excerpt from SWOT :

Since the store sells clothing and accessories, it's highly visual and isn't quite so dependent on language and such related issues, one needn't worry about translation as much.

When it comes to government, it will be necessary to acquaint oneself with the laws of merchant selling online in each of the respective countries where one will be shipping items to. The most crucial aspect about infrastructure is that the shipping part of the business needs to be completely tight: this refers to shipping and production. Once an order is place online, it needs to be shipped immediately to the buyer. "Annually, new and established online sellers will see dozens or even hundreds of packages that fail to arrive -- lost or damaged in the conveyor belts and trucks meant to carry them to customers. Be prepared to manage both the cost of lost items and the problem of disappointed customers" (Roggio, 2013). Thus, this is something that needs to be prepared for and that one needs to be aware of when launching an online business.


Online Businesses and Regulations

As a result of the fact that our business deals simply with clothing and accessories, and does not deal with things which are liquid, perishable, or which are highly regulated (like alcohol), we really only need the most basic understanding of the merchant/selling laws of a particular nation. We need to know what sort of tax, if any, is placed on our goods, and we need to be aware of any goods or materials that we're not allowed to use or ship. As already stated, the bulk of our success depends on how good our shipping department is, and whether or not items can be shipped safely and quickly while replenishing our inventory. In the beginning, we will only ship to countries that have signed the Guidelines to International E-Commerce. These guidelines: "set out principles for voluntary "codes of conduct" for businesses involved in electronic commerce; offer guidance to governments in evaluating their consumer protection laws regarding electronic commerce; and give consumers advice about what to expect and what to look for when shopping online" (ftc.gov). This will ensure that there's more of a common understanding between the nations that one is doing business with and the consumers there. This process should be free of worry and anxiety, as long as there is a commitment to fair business practices. There's still a responsibility to respect privacy laws, prevent identity theft as a business owner, use consumer credit reports and other safe practices (sba.gov).

4. Law enforcement agencies have difficulty combating many types of online crime. Describe 2 online crimes prevalent in e-Commerce and what you would do to prevent these crimes.

One major crime that is prevalent in e-commerce are crimes connected to identity theft. These crimes can largely be prevented by having a secure website, which protects the identity and billing information of all of our customers. Another type of very common crime in the realm of ecommerce is a corporate account takeover: "During the summer of 2008, a different type of cybercrime was identified -- corporate account takeover. It is costly and ranks among the fastest and most stealthy type of attack. Cybercriminals engaging in this activity surreptitiously obtain an entity's financial banking credentials, use software to hijack one of its computers remotely and steal funds from the entity's bank account, often costing the entity thousands of dollars" (aicpa.org, 2013). Security and audit controls can help in proactively controlling vulnerabilities along with protecting vulnerable software. External threats can be protected against via sound perimeter controls such as firewalls and Intrusion Detection Systems (IDS) can be very powerful tools for protection. Monitoring systems and technologies are crucial to protecting oneself and one's business from ecommerce crimes: making a commitment to such education, research and vigilance, is absolutely essential regarding having an online business.


Aicpa.com. (2013). Executive Summary. Retrieved from aicpa.com: http://www.aicpa.org/interestareas/forensicandvaluation/resources/electronicdataanalysis/downloadabledocuments/top-5-cybercrimes.pdf

Ftc.gov. (2000, March). Electronic Commerce: Selling Internationally A Guide for Businesses. Retrieved from ftc.gov: http://www.business.ftc.gov/documents/alt067-electronic-commerce-selling-internationally-guide-businesses

Roggio, A. (2013, July 18). 5 Things I Wish I Knew Before Opening an Ecommerce Business. Retrieved from ecommerce.com: http://www.practicalecommerce.com/articles/4105-5-Things-I-Wish-I-Knew-Before-Opening-an-Ecommerce-Business

SBA.gov. (2013). Online Business Law. Retrieved from sba.gov: http://www.sba.gov/content/online-business-law

Cite This SWOT:

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