Authors: S.K. Demchenko

Title of the article: E-commerce Risks: Sources and Mitigations

Year: 2021, Issue: 4, Pages: 16-26

Branch of knowledge: 5.2.3 Regional and sectoral economics

Index UDK: 339:004.738.5

DOI: 10.26730/2587-5574-2021-4-16-26

Abstract: Today e-commerce is one of the most dynamically developing sectors of the economy, accelerating trade and promoting domestic brands on the market, creat-ing high-performance jobs in the digital economy and automated logistics. At the same time, negative factors of economic development, such as a pandemic and international sanctions, trade wars do not clearly have a negative impact on e-commerce, often contributing to its growth. The development of information tech-nology is significantly ahead of the possibilities of physical logistics; therefore, e-commerce has a technological development potential associated with the intro-duction of virtual and added reality technologies, bio-identification of buyers, and the use of cryptocurrencies in transactions. At the same time, the rapid development of technologies carries a significant risk, which, combined with other threats typical for private business, act as deterrents in the development of e-commerce, increasing its availability for developing countries. These negative factors are associated with the risks of antitrust prosecution, violations of financial and customs laws, increasing information asymmetry and unfair actions of sellers and buyers. Reducing these risks of e-commerce requires the development of institutions and instruments of state regulation of the digital economy.

Key words: e-commerce economic risks cyber security government regulation

Receiving date: 14.09.2021

Approval date: 02.12.2021

Publication date: 24.12.2012

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