Important Issues In Global E-commerce

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Day by day E-commerce is becoming popular in the field of business. And internet has become the most popular market place for trade. It can be defined as follows:

Definitions Of E-Commerce

• Qualitative and narrow definitions:

E-commerce can be defined as purchasing and selling of goods or services through internet. As it is a retail sale to the consumers, the payment is to be done on open networks.

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• Broad Definitions of E-Commerce

According to this view, it is not necessary to use the internet for E-Commerce. This view describes that any forms of transactions that process and transmit digitized data including text, even a commercial transaction involving telephone lines and fax machines would come under the definition of E-Commerce.

Income Tax Freedom Act (ITFA), 1998 define the concept of E-Commerce as

Any transaction conducted over the internet or through internet access, comprising the sale, lease, license, offer or delivery of property, goods, services or information, whether or not for consideration and includes the provision of internet access.

• E-Commerce are of following types:

  1. Business-to-Business E Commerce.
  2. Business-to-Consumer E-Commerce.
  3. Business-to-Government E-Commerce.
  4. Consumer-to-Consumer E-Commerce or People-to-People E-Commerce.
  5. Intra-business E-Commerce.

• Advantages of e commerce for the business houses and customers

  • Without set up of a grand infrastructure the seller can start their trade via E-Commerce.
  • E-commerce is a Decentralized electronic markets and accessibility.
  • As because sale is made directly from the seller of goods or services to the buyer the number of intermediaries is very less in case of E-commerce.
  • As because the intermediaries are less in numbers there is less costs and more profits.
  • Customer can get easy information about the product in case of e-commerce and it is an open online showroom for the customers.
  • It is very much convenient for the customers.

Important Issues In Global E-Commerce

With the span of time E-Commerce has increasingly emerged as an important means of trade. Now the question is when dispute arises relating to any matters of E-Commerce, who shall have the authority to settle the same. Keeping in view of that the legislator pointed out the following issues relating to E-Commerce.

Types of issues:

• Issues relating to Access

The following issues must be resolved to give a wide exposure to E-Commerce globally.

i. Access to infrastructure

To conduct trade on the internet the most important thing is a proper telecommunications networks and services. The next thing is the quality of that connection. It is thus plays a vital role for E-Commerce to check that proper access is available or not.

ii. Access to content

Like access to infrastructure, various types of content transmitted over this infrastructure are also plays vital role as an elements of E-Commerce which is to be considered another important issues of E-Commerce.

iii. Universal access

For an universal trade through online, pre-requisites are communication services including basic telephone services so that the benefit of E-Commerce can be enjoyed. But on the other hand a large number of people in the world are even have the basic telephone services. This gap in the world population is called as digital divide. So this issue must be taken into consideration.

• Issues relating to Trust

Any form of E-Commerce cannot achieve success unless and until the trading parties or the buyer and seller shows their trust to each other, as well as the system or medium through which trade is taking place and transaction, is being done. The issues relating to trust are as follows:

i. Privacy

E-commerce is being done through internet and to conduct E-commerce trading parties have to share lot of information, database through internet. There is every possibility so that those important information and personal data may be unauthorisedly accessed by way of cyber theft. Because it the protection of privacy is very important issue in which the concern authority should look into.

ii. Security

Unless and until a proper security is given to the E-commerce it cannot get success as because both the purchaser and seller is sharing there confidential information to complete the process of trade, so they must need a secured system to complete the transaction. The prime security concerns of E-Commerce are confidentiality, Proper authentication and integrity of information.

To maintain the security issues each and every data should be encrypted. So that the information or data cannot be easily accessed by the unauthorised user.

iii. Consumer protection

Giving proper protection to the consumer is one of the most important factors of E-commerce. The major issues of consumers are fairness, labelling and refund mechanism in case of disputes.

The Global Information Infrastructure Commission specifies certain important issues which should be taken into consideration. Those are Online fraud, Privacy protection, Authentication of security information and Lack of Consumer education.

iv. Content regulation

E-commerce should not involve any trade of explicit content, Adult material, hate speech against minor, contents involving sedition or any other inappropriate or offensive contents.

• Issues regarding ground rules

E-commerce is an important method of business all over the world, so beside the standard rules and regulation of trade there should be ground rules and standards for E-commerce. To govern E-commerce the rules should focus in the following issues

i. Taxation

Three major issues relating to taxation in the field of E-Commerce which is to be handled carefully are a)Issues regarding classification b)Issues regarding source and place of residence c) Double taxation and tax evasion.

ii. Intellectual Property Rights

Another important issues of E-commerce is to look in to the matter so that during the course of trade, intellectual property rights cannot be violated.

iii. International trade

E-commerce is going on all over the world, as a result of which international trade becomes another significant issue which should be properly taken into consideration.

iv. Dispute resolution

Another important issue relating to E-commerce is to provide proper resolution in case of any dispute arises. Now a days online dispute resolution (ODR) become one of the method to provide solution to the disputes.   


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