E-Commerce

E-Commerce, or electronic commerce, refers to the buying and selling of goods or services using the internet and the transfer of money and data to execute these transactions.
E-Commerce can take multiple forms, including Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), and Consumer-to-Business (C2B).

Global reach: E-Commerce can target customers globally without the physical and geographical constraints of traditional retail.
Lower costs: Online stores are generally cheaper to set up and run than physical stores, which allows businesses to pass these savings onto consumers in the form of lower prices.
Convenience: Shopping online is convenient for customers as they can shop at any time and from anywhere.
Personalisation and product variety: Online stores can provide a greater variety of products and can personalise the shopping experience.

Security issues: Security is a big risk with e-commerce. Online transactions require sensitive customer data to be transferred, which is a target for cyber criminals.
Privacy concerns: Data collected in e-commerce can be used to track and profile customers which raises concerns over privacy.
Lack of physical verification: When shopping online, customers can’t touch, try, or verify the product before purchasing, leading to potential dissatisfaction.

Data misuse: E-commerce sites collect vast amount of data, its management and use should respect customer privacy and preferences.
Counterfeit goods: The sale of counterfeit goods is another ethical issue related to e-commerce.
Environmental impact: The increase in e-commerce has led to an increase in packaging waste and carbon emissions from delivery vehicles.

In the UK, e-commerce businesses must comply with the Consumer Rights Act 2015, which has extended consumers’ basic rights for goods and digital content, and the Data Protection Act 2018, which regulates how personal data should be used.
They must also comply with the Electronic Commerce (EC Directive) Regulations 2002 which includes rules over advertising, contract formation and the responsibilities of intermediary service providers.

Packaging waste: The increase in e-commerce has led to a surge in packaging waste from parcels.
Shipping and delivery: Many e-commerce products are shipped over long distances, contributing to carbon emissions.
Returns and waste: High return rates in e-commerce can also create waste if goods are damaged or cannot be resold.

Alternative packaging: Businesses can use biodegradable or reusable packaging to reduce waste.
Efficient delivery strategies: Strategies like combining deliveries, optimising routes can reduce the environmental impact.
Reduce returns: Clear product descriptions, images and sizing information can help to reduce the rate of returns.