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Asked by Abdul Last Modified
Answer 
There are numerous risks to the customers while using e-commerce because of which customers hesitate to transact online. The transactions risks may be due to following reasons:
(i) Default on Order Taking/Giving Here either the seller or the buyer denies the receipt or placement of order respectively.
(ii) Default on Delivery Sometimes delivery is not done or wrong goods are sent and sometimes the delivery takes at the wrong address.
(iii) Default on Payment Seller does not receive the payment, hut the buyers claims about making payment.
To avoid there risks and build trust and credibility among buyers, the seller should take following steps
(i) Identifying and Assuring the Details of the Customer Name, address and location, etc details, when entered by the buyer during registration must be verified. Help can be taken from cookies. Cookies are very similar to caller ID in telephones which authenticates the details supplied by the buyer.
(ii) Secure Payment Transactions For protecting the credit card details from being misused, encryption technology such as net scape Secure Sockets Layer (SSL) should be used. Encryption or cryptography is an important tool for safe guarding against data transmission risks.
Even secure payment sites like ‘Paypal’ can be used by the seller to protect the consumers.
(iii) Sell through Well Established Shopping Sites When the consumers are assured of the
identities, rating and sometimes even they are protected against default on delivery by such, sites, eg., ‘e-bay’.¨
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