Limitations of electronic business :
1. Low personal touch : High-tech it may be, e-business, however, lacks warmth of inter-personal interactions. To this extent, it is relatively less suitable mode of business in respect of product categories requiring high personal touch such as garments, toiletries, etc.
2. Incongruence between order taking/giving and order fulfilment speed : Information can flow at the click of a mouse, but the physical delivery of the products takes time. This incongruence may play on the patience of the customers.
3. Need for technology capability and competence of parties to e-business : Apart from the traditional 3R's (Reading, Writing and Arithmetic), e-busienss requires a fairly high degree of familiarity of the parties with the world of computers.
4. Increased risk due to anonymity and non-traceability of parties : Interest transactions occur between cyber personalities. As such, it becomes difficult to establish the identity of the parties. Moreover, one does not know even the location from where the parties may be operating. It is riskier, therefore, transacting through internet.
5. People resistance : The process of adjustment to new technology and new way of doing things cause stress and a sense of insecurity. As a result, people may resist an organisations plan of entry into e-business.
No, the above limitations are not severe enough to restrict its scope because websites are becoming more and more interactive to overcome the problem of 'low touch'. Communication technology is continually evolving to increase the speed and quality of communication through internet.