E-business is the modern means of an effective business. It has a lot of advantages for both the buyers and sellers. It provides a personalized service, uses modern and electronic means of communication, has improved the quality of customer service, there is no inventory cost, you can have worldwide access for your business, you can do bulk transactions and you also have an improved supply chain management. These all are various advantages of e-business through which a lot of people and the entrepreneurs are gaining advantage but there is also a darker side of picture which shows you the disadvantages of e-business which cannot be neglected.

The drawbacks of e-business are as follows:

  • A very big disadvantage of e-business is the lack of security. Also in case of e-commerce, we observe that the major obstacle in its growth is the issue of security. We all know very well that internet and things like bulk SMS marketing cannot be regarded as a safe and secured means of communication. There are a number of hackers present which are equipped with such options and tools through which they can monitor any data communicated over the internet. This is the reason that why most of the people don’t find it comfortable providing their financial information online because they have a threat of hacking and misusing of that information.
  • Another big disadvantage of e-business is the lack of privacy. Internet technology has a serious disadvantage in this respect as there is a threat posed to the private information of the customers which can be collected and recorded easily on the server side. An e-shop can come to know the buying pattern of a customer will the help of certain sophisticated tools easily. We know very well that the cookies can be used to track any customer online. Therefore, we conclude that on one hand these technologies are beneficial as far as customization is concerned, but on the other hand, we can say that they have posed a serious threat to the informational privacy rights of a person.
  • One more disadvantage of e-business is that there is no physical proximity with the purchased items. In some cases, the customers feel a need to examine a thing physically before buying it. We can take the example of cloth. Now, if any one wants to buy that piece of cloth, then definitely he would want to examine and touch the piece of cloth and feel its texture before purchasing it, but unfortunately it cannot happen. Similarly, if anyone wants to buy a perfume advertised by an SMS marketing company, how can he come to know whether it suits him or not? In such cases, the customer definitely wants to smell the perfume before buying it. Now, in the above or in any other similar cases, it is not possible for the customers to physically test, smell, touch or examine anything while buying it online. Hence, the customers would prefer physical shops over e-shops in such cases where they can physically test the thing they are about to buy. An e-business has a limitation in this regard.