E-commerce

There are various cultural and financial risks for E-Bay in Asia. The financial manager faces the major problem in the form of exchange rate risks. The cost of procurements and the cost of the final product might vary from the destinations these have been purchased or sold. This has impact on margins, which is minimized using different financial tools.

There are various financial risk experienced by thousands of finance professionals with interest in the Asia-Pacific region. E-Bay is one of these.  The financial manager needs to deal with different local and level of national banks and financial institutions like Investment banks, Regional and local banks, Private Banks, Insurance companies, Brokers, Law Firms and Consultancies.            
                           
Finance officer bear the administration cost, revenue cost due to exchange rate. The level of acceptance of e-commerce like e-bay is very less in many of the Asian countries due to low level of penetrations of internet and computer knowledge.

Internet is still used for communication purpose and it is not perceived as a proper mode for shopping experiences. People usually not enjoy shopping through internet. They feel internet shopping is not safe at all, so they prefer to go market and purchase whatever they want. However companies like E-Bay are making the shopping a fun experience for their consumers by introducing bidding into the same (Ihlwan, 2010).

There are various risks from culture to the exchange rate that affects the business operations. The growing numbers of internet users on one hand are increasing the hope for expanding market whereas current shopping behavior of consumer does not recognizes the e-shopping as major solutions for their needs.
Setting of a new offices and starting the new operations needs to be within the regulatory frame work of the respective country. The finance officer needs to look at these issues for the organization before making the financial investment decisions.