A high cost or another form of barrier to entry inhibits a company from joining the market and competing against other companies. Government rules or the necessity to get licenses are examples of entry barriers. Many e-commerce firms confront a number of challenges, one of the most significant of which is the high cost of Internet access in many countries (Kiradoo, 2019). This has become one of the most critical issues, and in light of current developments with the global pandemic crisis, it might become a serious impediment to the industry’s future development. While industrialized nations enjoy relatively inexpensive pricing and good speeds when browsing, many developing countries find it difficult to communicate with their family over the internet. Another issue is the possibility of e-commerce stagnation in general. There will be no e-commerce development until new markets are entered.
The problem of high Internet pricing might be linked to the country’s economy as well as the general growth of information technology. Governments in several countries are attempting to decrease Internet pricing and improve access, but many e-commerce businesses still view joining these markets as a risk (Kiradoo, 2019). Globalization has boosted this industry’s expansion, but it has also confined its development to economically and technologically developed countries.
Individual enterprises will continue to avoid entering new markets in order to prevent losing money until collective action is taken to eliminate this obstacle. While it is evident that e-commerce cannot boost anyone’s economy or lower Internet costs, it can have an impact on the government (Kiradoo, 2019). E-commerce profits are increasing year after year, and the epidemic has boosted them tremendously, implying that governments are attempting to profit from the situation. As a result, mutual agreements and joint committees can be used to begin the process of resolving this issue.
References
Kiradoo, G. (2019). The impact of E-commerce in the entrepreneurship and the obstacles faced by the domestic enterprise. International Journal of Management, 10(5), 154-164.