December 22^nd, 05: It is old news now that CEO of ebay-india was arrested. He was subsequently release in few days but not before US embassy in India intervened and the case got so high profile that even Central Government was seized of the issue.

For those, who are not aware of the issue; the episode in brief is ebay-india is a portal where users can log in and offer for sale any stuff they deal in for some commission to be charged by the portal. Some body posted a mobile mms clip for sale and few transactions happened. The portal has its own rules for allowing or disallowing offensive stuff and got it removed but detecting a mischief takes time and before it was removed, damage was done.

Now, it being a high-profile case, turned into emotive issue and beamed all over television channels even across many countries and Indian Government had to save its face in wake of its efforts to tap in FDI but knowing that governments do not easily move especially in third world countries, what would have been fate had it not been the case involving a high profile company.

E-commerce is booming across the globe. Though there are no authenticated estimates available from any reliable agency, it is estimated that trade with about US $ 1900 was transacted online in previous 11 months of year 2005. This trade is bound to jump many fold as trading online has its own advantages in terms of costs and other parameters. However thgere are few issues that are impeding its growth such as broadband connections, security and legal infrastructure, delivery of goods, credit and debit card payments, taxation laws and finally, mindsets.

All these issues basically sum into two issues; mindsets of the people and mindset of Governments. It is almost universal fact that all across the globe well established business houses are having their own trading channels and do not as much depending on net for on line trade while the growing and small businesses are the ones that nurture the trade. Small businesses are generally not so professionally managed (at least in some major countries as India, Pakistan, Lanka, Philippines etc) to straightway jump in on-line trade wagon. After all not to forget, we are almost living in first generation of on-line trade and its to take firm roots yet.

Several factors influence the growth trajectory of e-commerce such as, the growth of the overall Internet user base, quality of Internet access through the use of the Net arising from offices and homes and the extent of credit card use on the Internet."

The legal infrastructure, in most countries, is not ready to cope with the projected growth. The use of digital signatures is minimal. Electronic contracts that have been issued have not tested the judicial waters. The nation's expectations for an effective, efficient, legal infrastructure to support e-commerce are in infancy stage in developing countries.

Then; how safe it is to transact on the Net? As more and more people get comfortable with e-commerce, there will be enhanced awareness about online shopping and the people's trust in it will deepen.

On line stores should prominently display safety tips like reading item descriptions fully, looking at sellers' feedback score and asking additional questions to get complete clarity. In addition, there is a growing need for common platform to emerge where data for pshishing or credit card frauds is maintained and shared. It should also be made mandatory for banks to declare the names of blacklisted websites or parties on their websites

Encryption also offers a safer environment. The biggest myth about online shopping is the safety of credit card information provided on the Internet. Frauds do not happen online on reputed sites Fraud happens if one has access to information regarding a credit card number and the card's expiry date, which is readily available on charge slips that individuals sign at restaurants and petrol pumps and other retail stores.

Besides, there are some Other Challenges faced by e-commerce websites.

First is Quality. You can see a glamorous photo and excellent credentials of a product but rarely would a manufacturer boast of draw backs of his products as loudly as his plus points. That part is left for consumer to discover. When a consumer is frustrated, how to get replacementa dn even if manufacturer provides replacement, what about loss of freight and customs to the extent paid? Delivery of goods to consumers by couriers and postal services is not very reliable in smaller cities, towns and rural areas. The governments should simplify indirect taxation as currently, it is incredibly complex and eats up incredible margins.

On line trade will see a meteoric rise if more people develop confidence of safety of their transaction and perceive benefits of shopping online.

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