The Home Depot E-Business

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the transaction has authority to use the credit or bank information they are providing or if the information being provided in fact accurate. Hackers have the ability to use stolen information to purchase items online leaving the business out of money and merchandise. Another risk involved with using the internet is startup costs. Startup costs include a domain name, website hosting, a professionally designed website and copywriters. It might not be worth the investment if the business is far down on the search engine rankings or if there is too much online competition because if the business isn’t frequency searched for, there might not be enough traffic going to the site. Lastly, internet security – online businesses often collect personal information from their customers such as payment information, therefore a secured server and firewall must be in place to avoid potential security risks associated with hackers or authors of malicious software (Writing, 2015).

An e-commerce venture has both benefits and risks that must be carefully measured and considered. It must be decided whether or not the payoffs of transacting business on the internet will offset the applicable risks associated with the specific needs of the business. The costs for starting a website and web hosting must also be considered to determine if it will benefit sufficiently to rationalize the cost (Writing, 2015).

References

Banjo, S. (2014). Home Depot Lumbers Into E-Commerce. Retrieved from http://www.wsj.com/articles/SB10001424052702304626304579505723441210120

Soni, P. (2015). Home Depot (HD): Built of Strong Stuff. Retrieved from http://marketrealist.com/2015/03/home-depot-hd-built-strong-stuff/

Writing, A. (2015). What Are a Business Owner’s Benefits & Risks of Doing Business on the Internet?. Retrieved from http://smallbusiness.chron.com/business-owners-benefits-risks-doing-business-internet-102.html

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