What are some common barriers to B2C e-business growth?


According to Andrew Bartels, vice president and research leader for e-business strategies and applications at Giga Information Group, Inc., one barrier to dot-com retail success is the buyer experience.

Buyers "still like to feel the goods, see the goods before they buy them, or they want to get them the same day," he said, adding that the "vast majority (of products) are products that people want to see, touch, feel, taste before they make a final buying decision."

"Take cell phones. You can't get a sense online what it feels like to have a cell phone in your hand or what it feels like next to your face," but online, you can research coverage areas, pricing and specifications for the phone, according to Bartells.

Once the buyer narrows down the choices, they may want to test the phone in a store before actually making the purchase. Therefore, companies that operate in the click-and-mortar channels "will be more likely to capture that customer," he added.

Another example Bartels cited is online grocery shopping. "One thing we think will emerge is the ordering of dry goods, such as paper towels, napkins, ketchup... ordering those items over the Internet and going to the store to get items where your buying experience makes a difference -- meats, vegetables, getting the ice cream home before it melts," he said.

Other concerns include payment. Most international transactions on the internet today involves payment by credit card. This brings out two issues :

Firstly, consumers need to be assured of the security of their credit card transactions over the internet. Many are still apprehensive to make large purchases over the internet for this reason.

Secondly, payment by credit card excludes those without credit cards. For example, this may leave out the sales of books and CD sales to teenagers and young adults without credit cards, unless alternative modes of payment are made available.

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