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1.Demonstrate the scope of e-commerce and its benefits in business and its practical and commercial limitations.

2.Understand the technology involved in the successful adoption of e-commerce as a  business policy and the role of the internet.

3.Evaluate the nature of the legal and ethical frameworks for e-commerce, and why they are considered necessary.

The use of click and pay models and how it will affect retailers of the future

The technological dynamics have led to changes in the way trade is carried out. Today, organizations find it more efficient to conduct their services through the internet because of the advantages that are tied to it. The internet is now the primary platform for marketing of products. It is imperative for organizations which want to reach customers that are spread over a wide geographical area to use viable media (Van der Linden, S., Faber, S., Halstead, M. and Altberg, E.,.Yellow Pages. Com Llc, 2015, p. 45). E-commerce most of the time is done through electronic payments systems, and then the goods are delivered to the customers or clients go to the respective stores to get respective items.  It is crucial to note that the time and the style of payment differ from one organization to another depending on the strategies that are in place.

The use of click and pay models and how it will affect retailers of the future

The use of the click and the pay models so far has been so efficient to the searchers. The searchers are given an opportunity to acquire information on the products and services that suit their needs and values.  Customers are not bothered by the fact that the ads are charged, rather they are concerned about what products are in the market. Also, Google has created a greater experience for the customers by customizing their websites and made accessibility of information easy.

Also, though is a bit costly to the advertiser, it is imperative to note that he is given a great platform for advertising his commodities.  The business is given a chance to be able to reach a large geographical area. It is with the avenue of conveying information to the customers that business can earn a lot of sales.  The advertisers can be able to carry out electronic payment services through the platform that is rendered by the search engines (Nugroho, L.E., and Santosa, P.I., 2015, p. 368).

Also, advertisers can customize the information that they want to disseminate to the customers, For instance regarding the geographical and the demographic characteristics.  It is thus imperative to note that the model is crucial for businesses that serve a wide geographical area and differentiate regarding the class, lifestyle, and age.

The click and pay models have experienced some limitations in the course of E-commerce. To begin with, the model has proved to be very expensive and is subject to the nature of the product and the competition in the market.  In the case that the contest in the market is high, then the pay rates will be very high.  The whole scenario is done through bidding, and thus one can end up paying a lot when the number of market players is so many.  It can thus be a strain to a company that is in the preliminary stages of their cycle (Turban, E., King, D., Lee, J.K., Liang, T.P. and Turban, D.C., 2015, p. 23). More resources need to be exploited to be able to customize an Ad that will be the most viable so as to win the bid. Expertise knowledge is also required to be able to strategize the best Ad to bring forward correctly.

Limitations of click-and-pay models

It is paramount also to comprehend that it is not automatic that the users that will view the advertisement will order for the services or the goods. As a company, you will incur the cost yet the   Ad did not meet the intent of the poster.  The hands of the company are tied in that it cannot control on who should click on the ad and who should not. Also, some users detest the click Ads, and thus they will never click on them. Changing this attitude is tough.

There is always need for the business to monitor the Ads so as to verify if they are being used in an intentional way. For instance, the business must ensure that there is an expert who keeps on checking the way people are reacting to the advertisement so as to identify what changes that he is supposed to make to make the ad to be richer to achieve the overall objectives of the company.

The future of the click as you pay models is dynamic though it has prospects that it can sustain itself in the future (Turban 2016, p. 131).It is vital to note that retailers should be more aggressive in the market, for the model will be applicable more than ever. Retailers will have to devise more strategic ways that can be able to make them more competitive and with more resources that can help them win the bids that will be comprising of all sorts of competitors that are equally or more competitive.

 It is a fact that the click as you pay model will be the most viable method of online marketing in future. Retailers will be affected in such a way that they will have to embrace it despite the challenges that it creates.  Due to the advantages that the model gives, retailers will have to allocate more resources to be able to use it. Click as you will be the most optimal method free from any biases and thus the most efficient.

The model in future will affect the way the retailers will operate in that the retailers will need more personal information from the customers such as the location, the age and the gender of the customers (Xue, J., Niu, Y. and Yu, W., 2015, p. 4). It is imperative to identify that retailers will be more concerned in knowing more about the customers so that they can be more conversant with their needs and wants.   Due to the perceived stiff competition in the market, retailers will want to carry on research on the market and so as to be more outgoing when it comes to the bidding process.

Furthermore, retailers in the future will have to showcase the products that they want to deliver to the customers so that the clients get to see or touch what they will purchase before they buy the products. It is critical to note that the retailers will be keen on creating value to the customers. Customers will be free from the problems that arise when they are delivered to the wrong items or those that do not suit the descriptions that they gave to the retailers (Tadelis 2016, p. 455)

The future of the click-as-you-pay model

Customers today are more conversant with diverse lifestyles, and thus they are more triggered by experiences. Customers not only want to purchase quality products but also to have experience when they are visiting the shops.  The Bricks and Mortars and the pop-ups of today will be extremely different in the next 3yearss. Here are some of the expected changes that may occur. To begin with, the retailers in 2020 will have embrace online marketing. Besides having a pop-up shop, there is need to embrace new technologies in the market.  The pop-ups will be part of the revolution that will be taking place in the digital marketing (Masuko, S. and Kuroki, R., 2015, p. 187) For example; the retail shops will open up pop-up stores and still advertise products on search engines such as Bing and Google.  

Also, the retail shops will not be just places where customers stop to get their favorite products but to able to socialize and acquire new experiences.  Retail shops will not only provide products but also places where customers will be excited to visit from time to time.  Bricks and mortar will not be in demand anymore; retailers will need to use more sophisticated ways of designing pop-ups (Quigley 2015, p. 34). The pop-ups will have to exist at this time because of the needs to make physical the products that it deals with. At this juncture, the customers will be more interested in getting into contact with the goods before paying for them. For instance, customer needs to experiment the shoes that he wants to purchase from an Adidas retail shop before he can pay for them.

Moreover, the pop-up will be more transitory at this point. It indicates that the retail shops will be used more as an avenue where new information about the products is published to the users and when it is comprehended which automatically will take a short period, then new data is brought in. Also, the pop-up shops will not be situated in only one strategic place, but they will keep on rotating to occupy different spaces every time (Pak 2016, p. 30).  It is a time where diversity will be experienced to a whole new level.  In this instance, the shops can rotate in strategic places like in malls and shopping centers.

It is relevant also to note the pop-up shops will not be keen on transforming their brands but to mold individuals to users of the brands. The stores will create a bond between the users and the shops. It is ideal to identify that the shops will act more of a place of fun than a place where brands are sold. For example, a customer stopping at the Puma pop-up shop to purchase shoes in the eve of the Olympics and takes photos at the shop.

In the years to come, the pop-ups will be more associated with the tailor making of commodities for its customers.  The retailers produce products that suit the specifications of the customers rather than their standardized products (Bajwa 2015. , p. 96).Pop-ups will, for instance, customize a closet for a client, where the customer can specify the space that she has, and the retailers can make it for her in regards to the specifications given.

Bricks and Mortars and Pop-ups in 2020

It is certain that the bricks and mortars will be more compelled to engage less human labor than before. Due to the technological advancements, they will employ more technology in performing of tasks to create efficiency. For the bricks and mortars will use robots in the distribution of orders as a form of creating service acceptability in the market (Giri 2016, p. 390). The transformations that will be taking place will all be directed for the good of the customers. On the other hand, the retailers will also be seeking to reduce the costs of operations. In the coming time, retailers will not be carrying out any tenant improvements but instead will be looking for places that are readily designed for the purpose of setting up a pop-up shop that will provide the customer with physical products and total customer experience.

Online security, legal and ethical issues will play a significant role in e-commerce especially as it relates to Artificial Intelligence (AI)

For the smooth running of e-commerce, businesses should ensure that they promote cyber security and adhere to the ethical standards that apply to e-commerce. To begin with, cyber security is vital for any business so as to make sure that the information that is conveyed in the platforms is protected and there are no instances of fraud (Tomar 2017, p. 19). The primary victims of cyber crimes are small businesses that lack resources to carry out control measures. It extremely costly for organizations when they are faced with fraud situations, the concerned parties have to compensate the damaged customer (Smith 2016, p. 166). For a business to be able to be free from cybercrime, then it is crucial for it to embrace strategies that will address the threats to the security of the business.

The first strategy that a business can engage in is to come up with a range of an amount that is payable to the account of the business; this dictates that if customers are asked to pay an amount that exceeds that which is stipulated then they will automatically raise the alarm to the management if the business. Also, the computer system should be made in such a way that it can report and processing of a   transaction that is not authorized by the management. Fraud has led to the development of a negative image towards a company more so if the incident was not looked into with some amount of seriousness.

 Monitoring of operations is necessary for the pledge to run E-commerce. The business must keep in place strategies that will make the organization to know on what is ensuing. For instance, the computer systems should be able to categorically compare the details that the customer gave in correspondence with the amount trails and the released goods or services. It is also efficient for the company to make use of the artificial intelligence in checking detecting the instances of fraud through identify customers that have not registered their contact information with the service providers (Shirurkar, M.P., and Barve, A.A., 2015, p. 209). The monitoring should not also be done in such a way that the privacy of the customers is infringed.

 Moreover, the business should always use the advanced versions of the software more so the e-commerce software. The use of the updated software aids in the sealing of any loopholes that may have emerged over time. When the systems are changed the from time to time, the levels of hacking are minimized, and the artificial intelligence is more useful in its security issues. The company can also emphasize on the physical inspection of the cards before any transaction takes place. It is imperative to note that most of the fraudulent individuals pose with the identity cards of other people (Coventry, L., Briggs, P., Jeske, D. and van Moorsel, A. 2014, p. 236).The artificial intelligence should be used in the detection of any forceful entry in the avenue where passwords are set. The artificial intelligence is integrated into a scenario where it is engaged in risk management through making it to detect threats to information and to implement measures that will help protect sensitive data.  

Legal issues play a major role in artificial intelligence where it has the task of reinforcing on what are the illegal instances and which one are not. For instance, the illegal activities include the engagement in fraud and using the patent of another business without the consent of the company which amounts to charges (Sharma, G. and Lijuan, W., 2014, p. 423). The ethical standards have the role of guiding the E-commerce. The parties involved in electronic commerce can be informed of the ethical standards that they must apply when conducting their businesses. It is imperative to identify that the ethical and the legal standards should be followed to the latter so that discipline is maintained and the business is conducted in the best manner (Deshmukh, S.P., Chhangani, A.Z. and Thampi, G.T., 2016, p. 332).Artificial intelligence in e-commerce should not allow businesses to be less confident with private information.  To be able to earn the trust of the customers and other stakeholders, then the information should always remain confidential. Lastly, it is relevant to note that though. AI is important; it should not allow for the distortion of the position of an individual at the workplace contrary to the provisions of law.


It has turned out that e-commerce is essential today and even shortly. It is also evident that all the stakeholders have a responsibility to play in the growth of e-commerce.   E-commerce should be developed so that the businesses that are involved with it can benefit directly. For a business to fully utilize, it then it should embrace the new technology accompanied by competent staff.  Some challenges are emerging as a result of the adoption of E-commerce, and thus they must be addressed so that businesses can thrive. The ethical and the legal standards apply in e-commerce, and thus companies understand that to be able to retain most the customers and to be able to run the operations of the company smoothly then it has to practice good conduct (August, M.B.A., and Learning, M. 2015, p. 520).It is not all about earning profits but also to operate in requirements of the laws of the land. AI should be used in making business more sustainable but not creating conflicts. E-commerce will shape the future and thus the steps that are being taken today will determine its prospects.  

'August, M.B.A., and Learning, M.' 2015, vol 225, pp. 315-5655.

Bajwa, R, DJSAKT, 2015. , 'Indian E-Commerce Industry: Challenges and Opportunities.', Asian Journal of Research in Banking and Finance, vol 5, no. 5, pp. 91-98.

Coventry, L., Briggs, P., Jeske, D. and van Moorsel, A. 2014, 'Scene: A structured means for creating and evaluating behavioral nudges in a cyber security environment,' In International Conference on Design, User Experience, and Usability, pp. pp. 229-239.

Deshmukh, S.P., Chhangani, A.Z. and Thampi, G.T., 2016, 'Public Policies to Facilitate Higher Penetration of E-Commerce and M-Commerce in India for Higher Productivity.',Productivity, vol 56, no. 4, p. 332.

Giri, AV, 2016, 'THE ROLE AND IMPACT OF E-COMMERCE ON CONSUMER BEHAVIOUR.', Economic and Social Development: Book of Proceedings, p. 390.

Masuko, S. and Kuroki, R., 2015, 'AR-HITOKE: visualizing popularity of brick and mortar shops to support purchase decisions', In Proceedings of the 6th Augmented Human International Conference, pp. 185-186.

Nugroho, L.E., and Santosa, P.I., 2015, Analysis of E-Commerce User Behavior of Indonesian  Students: A Preliminary Study of Adaptive E-Commerce. In Computational Intelligence and Efficiency in Engineering Systems, Springer International Publishing.

Pak, S, 2016, 'In line with going online: using e-commerce to tap new markets,' In International  Trade Forum, vol 2.

Quigley, JF, 2015, CONSUMER BEHAVIOR IN DIGITAL MARKETS. Sharma, G. and Lijuan, W., 2014, 'Ethical perspectives on e-commerce: an empirical investigation. ', Internet Research., vol 24, no. 4, pp. 414-435.

Shirurkar, M.P., and Barve, A.A., 2015, 'CYBER SECURITY: A STUDY BASED ON STANDARDS, AREAS AND STRATEGIES IN INDIA WITH RECOMMENDATIONS FOR MAKING IT MORE OPERATIVE.', Advances in Computational Research, vol 7, no. 1, p. 209.

Smith, SN, NFFHACMX. 2016, 'The Impact of Security Cues on User Perceived Security in e-Commerce',. In International Conference on Human Aspects of Information Security, Privacy, and Trust, pp. pp. 164-173.

Tadelis, S. 2016, '19 two-sided e-commerce marketplaces and the future of retailing', Handbook on the Economics of Retailing and Distribution, p. 455.

Tomar, AS, 2017, 'Cyber Security in E-Commerce,' PARIPEX-Indian Journal of Research, vol 5, no. 11.

Turban, E,SJALL, 2016, Social Shopping: Concepts, Benefits, and Models. In Social Commerce, Springer International Publishing.

Turban, E., King, D., Lee, J.K., Liang, T.P. and Turban, D.C., 2015, Electronic Commerce: A managerial and social networks perspective. , Springer.

Van der Linden, S., Faber, S., Halstead, M. and Altberg, E.,.Yellow Pages. Com Llc, 2015,

System and method to merge pay-for-performance advertising models, U.S. Patent  9,202,219.

Xue, J., Niu, Y. and Yu, W., 2015, 'Research on E-commerce Communication Model and driven strategies.', In Logistics, Informatics and Service Sciences (LISS), pp. 1-5.

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