The 21st Century is characterized by increased coverage of the internet and technological advancements that make it inevitable for businesses to consider transforming to remain relevant. Customers rely on online platforms such as websites and social media to search for information about products to make informed customer purchasing decisions. Therefore, designing sites that enhance navigation and accessibility to information about the company and its brands is critical to winning customer loyalty and trust. A corporation should take advantage of e-commerce tools and platforms to provide accurate and reliable information to protect customers from counterfeits; thus, encouraging them to remain loyal. Social media and websites offer platforms for advertising and selling products. E-commerce provides a company with an opportunity to design and implement a digital marketing program to sustain its operations and market positioning, as observed by Choi and Mai (2018).
Many businesses have adopted new models of business, either adding an online website or shifting entirely to online selling. Even today, the internet is dominated by the biggest retailers, now small businesses resorting to internet marketing and selling. Currently, there are two main types of websites, mortar website and click website. This is a kind of website that was available in front of a mall. Businesses with a physical store transform their products online. This has increased income streams for the companies. Some businesses have been able to integrate the two models while other different income streams. Wright, (2016) noted that businesses are created mainly for the internet end up not opening a physical store. Online types of businesses are mainly preferred by start-ups for low overhead costs.
E-commerce has offered an opportunity for companies seeking to increase their sales and profits to realize their goals. A study conducted by Falk and Hagsten (2015) on the effectiveness of online platforms such as websites and social media on sales revealed that e-commerce has a significant contribution to sales and revenues. This conquers with the findings that e-commerce offers an opportunity for a company to make direct sales to its customers to increase its sales and profit margins. Increased sales translate to an increase in gains. The internet is a critical component in e-commerce that has offered a platform for companies to promote and sell their products and services. Companies have had a chance to direct sales to customers at different levels, such as business to business and business to consumers.
Companies from different levels have embraced the internet. Businesses have introduced the internet as a new source of customers with some turning to online sales exclusively. However, due to many reasons, customers have not embraced the internet, as they should. Online purchases have also increased due to its convenience. Customers are now able to order items online and get their items delivered at their destinations.
E-commerce provides an opportunity for businesses to integrate internal and external processes. This lowers transaction costs, increase sales and distribution channels. E-commerce has been introduced in many areas mainly classified into Business-to-Customer (B2C), business-to-business(B2B). Business-to-Business has grown much faster than Business-to-Customer (B2C). It has increased the exchange of electronic data interchange (EDI). B2C on the other hand has grown with the expansion of internet use over the last 10 years.
Customers have shown concern about data security risk especially when it comes to providing information about payment options. The research was aimed at researching the main risks in e-commerce and how it has affected online shoppers. Some of the common risks evident from the research were fraud risk, security risk, and data theft risk.
This research investigated the risks associated with e-commerce. Studied customer perceptions and how it affects e-commerce. According to Miyazaki, (2001), industries and government have highlighted privacy and security as a major e-commerce risk. Risk perceptions regarding security and internet privacy are at different levels. Gurung, (2016) also confirmed security concerns as the major hindrance to e-commerce. The risk is associated with risk perception of customers.
Additionally, the research showed the importance of having human interactions in handling customers. Incorporation of chart platforms has encouraged customers to trust online platforms. The model has increased trust in e-commerce by allowing customers to interact with the business and vice versa.
E-commerce encourages the use of digital platforms to promote the operations of a company. The 21st Century is characterized by increased coverage of the internet and technological advancements that make it inevitable for businesses to consider transforming to remain relevant. For instance, Išoraitė & Miniotienė, (2018) revealed that customers rely on online platforms such as websites and social media to search for information about products to make informed customer purchasing decisions. Therefore, designing sites that enhance navigation and accessibility to information about the company and its brands is critical to winning customer loyalty and trust. A corporation should take advantage of e-commerce tools and platforms to provide accurate and reliable information to protect customers from counterfeits; thus, encouraging them to remain loyal. Social media and websites offer platforms for advertising and selling products. E-commerce provides a company with an opportunity to design and implement a digital marketing program to sustain its operations and market positioning, as observed by Choi and Mai (2018). Relying on digital platforms and e-commerce tools is critical to spurring sustainable growth in business.
In conclusion, customer trust is a major set-back for e-commerce websites. These companies need to recognize the risks associated with the industry. However, e-commerce giants such as Amazon.com continue to increase their market share due to customer trust. In established websites, customers tend to overlook all other risks. This indicates that all the mentioned risks can be avoided by improving customer relationships and privacy policies. Behavioral risks are due to the experiences customers have had during online shopping.
The analysis also established that major e-commerce risks include fraud, denial of service, privacy risks, credit card fraud, and lack of human interactions with clients. Businesses are required to identify measures of reducing the threats to develop and implement strong measures of combating the risks. businesses need to follow government guidelines when implementing policies.
With an increase in e-commerce risks, the government has played a major role to protect consumers. The introduction of cyber laws and recovery of stolen data has increased consumer trust when shopping online. Data protection policies are aimed at ensuring that the method of collecting, processing, transmission, storage, and disposal of personal data according to the law. Websites are required to abide by set regulations by the law. Businesses should develop and implement data protection laws following federal laws Invalid source specified.. E-commerce websites have increased human interactions through the adoption of more human-friendly methods. Companies venturing into e-commerce should embrace interaction with customers directly. Customer reviews are important in e-commerce. The websites should be able to leave comments about their experience to boost trust from new clients. Agents should also be engaged in websites to facilitate personal interaction during purchasing, negotiations, and consultation services to boost website trust.
Alibaba has been a good case study company. Apart from various challenges, the company has emerged to be the leading e-commerce website of this century. Through the founder, Jack Ma has been able to forecast the future of the e-commerce industry and come up with solutions to the majority of problems. Alibaba has introduced new algorithms for handling major security issues. Machine learning and big data have been the main breakthrough of the company’s major security threats.
The company has been able to balance between data security and privacy. Through prioritizing the main issue, the company has used available data to feed IA algorithms for better security experience.
The company has introduced products such as Alipay and Fair Pay Fund that protects both the customer and suppliers from fraud. This service allows the Alibaba platform to be one of the most trusted platforms. It makes sure that customers understand how the system works, risks, and liabilities the supplier is liable to when they do not deliver as per the requirement. Payments are mainly held on the system escrow awaiting for confirmation of item quality.

Lastly, the majority of e-commerce companies are faced with the logistics challenge. The fact that products can be purchased by some from any part of the world makes it hard for a company such as Alibaba to goods on time and in the best conditions. The company has shown great efforts in improving the movement of goods from one location to another, one country to another. It has shown great management skills in ensuring that products take the minimum time possible. Currently, customers can receive their product products with a maximum of 30 days, at any location in the world.
5.1. Research Contribution
This section focus on contributing to the study subject. It is divided into three subsections; contribution to theory, methodology and practice.
5.1.1. Theoretical Contribution
Both the theory and findings contribute to understanding of e-commerce risks and how they can be counteracted to gain competitive advantage. With the increase in introduction of e-commerce by many businesses, it will be important for companies to understand risks they are expected to face. The findings in the study suggest that e-commerce can be used to increase competitive advantage of a company. Some main advantages of implementing e-commerce in business include increased sales, increase market, reduction in overhead costs and easier methods of data collection and analysis.
This case study showed that a large percent of mitigating risks in the e-commerce industry is mainly on the business’s side. Unlike other companies, Alibaba has showed a great concern in ensuring that customers and suppliers are protected through their policy and payment platforms created. The study also showed that company has effectively used artificial intelligence in mitigating risks.
5.1.2. Methodological Contributions
Through the methodological contribution in this study, the case study and interpretive approach applied in data collection, experience was gained. Similar experiences may also be useful in studies that relates to e-commerce. It can be used to collect and analyze data during policy development and recommendations. Additionally, methodological contributions relate to appropriateness of theoretical concepts developed in other contexts. The applicability of similar theories applied in this study may be developed in other companies planning to venture into e-commerce. The successful use of these theories contributes towards providing interpretation of case studies from emerging companies.
5.1.3. Practical Contributions
The main practical contribution of this research is the detailed insight provided by the research questions. The case study reveals that a company venturing in e-commerce business should ensure that it is compliant with given risk standards. The companies should also try to come up with products that favors their users. Companies should emphasize on safety of services. The study also showed that companies should consistently monitor their systems for any abnormalities, and rectify the problems soonest.

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