Essay about The Impact of E-Commerce
However, the growth of eCommerce did not come without ramifications; its meteoric rise created many challenges and placed many economic sectors in jeopardy. Stock prices increased rapidly because of the companies’ rising equity value based on speculators. Companies altered their measures of performance by computing website visits instead of utilizing traditional metrics to predict proceeds, and investors were encouraged to invest in risky businesses. When the profits did not materialize and oxygen of the hype depleted, the dot-com bubble burst, and individuals lost faith in electronic commerce. Eventually, business-to-business eCommerce was hampered by integrity and accountability concerns, consumers were afraid of business-to-consumer transactions because of authenticity matters, and consumer-to-consumer eCommerce grappled with confidentiality and security issues. This led to many reforms and changes to protect investments and encourage participation in eCommerce.
Congress and other regulatory bodies enacted various measures to standardize accounting principles for