Question

Which of the following is a disadvantage of E-Commerce?

• A. Privacy
• B. Improved customer service
• C. Speed
• D. Conduct business 24$\times$7

Hint:

A major challenge of e-commerce is {data security and privacy protection}. Businesses must use encryption, secure payment gateways, and authentication methods to protect user information.

Answer 1

The Correct Option is A

Step 1: Understanding E-Commerce.
E-Commerce (Electronic Commerce) refers to the process of buying and selling goods and services through electronic networks, mainly the internet. It allows businesses and customers to perform transactions online without needing a physical marketplace.
Step 2: Advantages of E-Commerce.
E-commerce offers several benefits such as faster transactions, convenience, global reach, and the ability to conduct business at any time. Features like improved customer service, high speed of transactions, and 24$\times$7 availability are considered major advantages of online commerce.
Step 3: Identifying the disadvantage.
Despite its advantages, e-commerce also has some disadvantages. One of the most significant issues is privacy and security. When customers make online transactions, they must share sensitive information such as credit card numbers, banking details, and personal data. This information can sometimes be misused or hacked if proper security measures are not implemented.
Step 4: Evaluating the options.
(A) Privacy: Correct. Privacy and security risks are major disadvantages of e-commerce.
(B) Improved customer service: Incorrect. This is an advantage of e-commerce.
(C) Speed: Incorrect. Online transactions are usually fast and efficient.
(D) Conduct business 24$\times$7: Incorrect. This is a key benefit of e-commerce.
Step 5: Conclusion.
Therefore, the correct answer is Privacy, as concerns related to personal data security are considered a disadvantage of e-commerce systems.
Final Answer: Privacy.