The Internet has become a medium for the network economy. The network economy is becoming the beginning for e-commerce. E-commerce is the same entrepreneurial activity, but in which the possibilities of information and telecommunication technologies are used in order to make a profit.
With the help of e-commerce, firms and companies can provide detailed and accessible information about all their products and services in real time. You can respond flexibly to any change in consumer demand, and, as you know, the elasticity of demand in electronic markets is significantly higher than in real trading floors. It is the Internet that makes it possible to quickly respond to any changes in the external environment.
Information overload and randomness of numerous sites. All this makes it difficult to attract and retain potential customers. The user often cannot find the necessary information, the product or service that interests him. All this leaves his need unsatisfied, and the time spent on searching among a large flow of information turns into costs. This is information about the price that should be acceptable, information about the characteristics of goods and services, information about the sellers themselves.
Security of financial transactions and transmitted information that is confidential. Recently, payment for purchases using credit cards is gaining popularity. This method of purchase is not safe, because in order to transfer money for goods, it is necessary to enter card details, which, unscrupulous market participants, can use for personal purposes. You can also use electronic payment systems to pay for online purchases, which make all settlements with sellers independently. In this case, the seller does not receive any information about the details of the buyer at all. There is simply a transfer of funds from the buyer’s account to the seller’s account. In order to minimize e-commerce security threats, reliable and efficient mechanisms should be used to guarantee confidentiality, identification and authorization.
There is no development of the regulatory and legislative framework, as a result of which there is a problem of protecting intellectual property rights for a product or service that is sold within the framework of electronic commerce, as well as problems of a financial and contractual nature. As a result, there is distrust on the part of investors, potential buyers. tel, the pace of development is declining.
E-commerce requires a specific legal strategy that would promote the development of a global and open market. At the present stage, this means the coordinated use of both traditional legal norms and new specially created legal institutions and procedures. In addition, it is necessary to unify legislation and simplify the rules and procedures applied in different countries, which requires cooperation between business and government.
It is advisable to create a model legislative act that defines the conditions and procedure for the use of electronic signatures, under which the latter are recognized as reliable, and their forgery or falsification of signed data can be accurately established. The rapid growth of transactions on the Internet and other networks led to the formulation of this issue among the priorities. Trust in the electronic signature, provided by a system of legal guarantees at the level of law, is key to the conclusion of contracts and the transfer of real or other rights through electronic communication. We recommend you Dinarys – e-commerce development company.