E Commerce In Iran Essay

1447 words - 6 pages

Introduction Iran as a developing county is practicing some e-commerce related activities. This article is about the existing practices in Iran with respect to buying and selling online. It covers the following subjects: Advantages and disadvantages of e-commerce Iran’s banking system which supports Online payments What kind of businesses can go online? Where is Iran in international e-commerce competition? What opportunities can e-commerce provide for Iranian business people? Advantages and disadvantages of e-commerce Using the e-commerce new ways for business people and consumers is provided helping them communicate and conduct business easier and ...view middle of the document...

There is a catalogue flexibility and online updating is fast (isos, 2008) As marketing and advertising expenses reduces, there is a better chance in competing with bigger companies (isos, 2008). Business relationships with dealers and suppliers are more efficient (isos, 2008). 10.Payment systems and fund transferring systems are encrypted and secured (isos, 2008). Disadvantages of e-commerce There are also some disadvantages in e-commerce which can be listed as follow: Delivery of physical goods needs time and you cannot something them as soon as you pay for it (marcbowles, 2008). There are always some levels of uncertainty. The buyer cannot be %100 sure that the seller is legitimate and he/she will receive the product that he/she is purchased (marcbowles, 2008). Shipment of perishable goods is not an easy job (marcbowles, 2008). By choosing to buy something through internet we cannot be sure about the quality and if the good is what we really want (marcbowles, 2008). Returning of the goods is not always satisfactory when it comes to refund, return postage fees, required time, etc issues (marcbowles, 2008). Potential frauds in identity, personal information and payment information (marcbowles, 2008). Feedback about how people react to product and service offerings also tends to be of little use, using internet based sales (marcbowles, 2008). Very small or very large transactions cannot be done online as normally these transactions are done using a credit card (marcbowles, 2008). Small amount orders tend to have very high shipment prices which are not suitable for individuals (marcbowles, 2008). Limitations and boundaries of e-commerce in Iran It has been many years that e-commerce has came to Iran. Though the rate of e-shopping is increasing there are still some limitations and problems to be solved. “Trust” is one of the main problems that e-commerce is facing. Iranian people do not trust suppliers whom they cannot see or talked to. It is difficult for them to pay money online and wait for delivery instead of going to a shop and get the goods as soon as they pay the money. Other issues which must be considered are as follow: Online payment and fund transfers are not available for most of the people who use debit cards of most of the Iranian banks expect for Parsian Bank and Saman Bank. Suppliers/ sellers are not trusted by people as they do not provide satisfactory information about themselves. Lack of appropriate legal framework (Abbasi, Alireza, 2007). Security Low internet connection speed and high prices of connecting to the internet. Although new ISPs (internet service providers) are being introduced every day and broad band connections like ADSL with up to 2 Mb/sec speed are available in recent years, still there are lots of people that only have...

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