NEW NORMAL ONLINE SELLING BUSINESS RISKS AND PREVENTION

PRACTICES

A Research Project
_______________
BY:

Buante, Jelly Cris S.

Edolog, Yricka C.
Gabaleo, Jestoni B.
Manginsay, Erica Deb A.
Quidato, Ivan Danniebhelle C.
Toballa, Ernie Jr. V.

GRADE 12 ACCOUNTANCY, BUSINESS AND MANAGEMENT

SENIOR HIGH DEPARTMENT
GENERAL SANTOS CITY NATIONAL HIGH SCHOOL
Calumpang, General Santos City

March 2021
NEW NORMAL ONLINE SELLING BUSINESS RISKS AND PREVENTION
PRACTICES
________
A Research Project
Presented to the Research Council
__________

In Partial Fulfillment of the Requirements

For Accountancy, Business, Management Track Senior High School
____________

BY:

Buante, Jelly Cris S.

Edolog, Yricka C.
Gabaleo, Jestoni B.
Manginsay, Erica Deb A.
Quidato, Ivan Danniebhelle C.
Toballa, Ernie Jr. V.

GRADE 12 ACCOUNTANCY, BUSINESS AND MANAGEMENT

SENIOR HIGH DEPARTMENT
GENERAL SANTOS CITY NATIONAL HIGH SCHOOL
Calumpang, General Santos City

March 2021
 Chapter I

INTRODUCTION

Background of the Study

As people aim to maintain to live normally in this amid pandemic

restrictions, social media from around the world has become new normal. With

consumers increasingly adding to online shopping amid pandemic restrictions,

more and more entrepreneurs are adopting the digital phenomenon for online

shopping. Lazada and Shopee are some of the e-commerce websites that are

leading these online shopping platforms with an expected increase in sales

revenue of millions of pesos. Technology has transformed online business

transactions into an endless market-making business that has become more

convenient and efficient for both vendors and vendees. The COVID-19 pandemic

made this market a more obvious necessity.

According to Lemberger (2020), as the world is struggling through a global

pandemic in the middle of an unpredictable time, the businesses also are

changing the way they do business to meet customer demand as customers turn

to a digital-first mindset. Moreover, in the abundance of the pandemic, fraudsters

do not take days off, so business owners need to ensure that they have the right

risk strategies and safety solutions in place to better mitigate risk. To better

handle business risk, some several variables and situations need to be

investigated, more than we can cover here.

 Furthermore, the main goal of the UK policy is to save lives, but it also

acknowledges that the restrictive lockdown policies have to reduce the social and

economic impacts (Sopp, 2020). Therefore the goal is to return to as normal a life

as possible for as many customers as possible but to prevent another outbreak.

It is predicted that UK employers will support this approach and play their part in

preventing another outbreak. All organizations must understand that COVID-19

control is an occupation. The Health and Safety Executive (HSE) noted that the

legislation requires all employers to evaluate the risk of returning to work while

the outbreak of corona virus is ongoing and to take steps to manage that risk."

There is no question that COVID-19 would adjust the company risk profile of UK

workplaces, including the risk profile for health and safety. The COVID-19 risk

profile of your company would be expected to be kept under intense surveillance

as the national strategy is liable to change.

In these times of pandemic where people need to adopt the new normal, the

result of this study will be beneficial to the online sellers in Barangay, and will

also to the customers. This study will determine the possible risks that online

sellers might experience as well as the prevention practices to address business

risk. Furthermore, the researchers will define the significant relationship between

the new normal online selling business risks and prevention practices.
Statement of the Study

This study aims to determine the new normal online selling business risk

and prevention practices experienced by the Online Sellers of Barangay

Calumpang, General Santos City.

Specifically, this study seek to answer the following questions.

1. What is the new normal online selling business risk experienced by

the online sellers in terms of:

1.1. Bogus buyers;

1.2. Products;

1.3. Time of delivery and;

1.4. Sales?

2. What is the prevention practices to address business risk in terms

of:

2.1. Bogus buyers;

2.2. Products;

2.3. Time of delivery and;

2.4. Sales?
 3. Is there any significant relationship between the online sellers and

the new normal online selling business risks and prevention

practices?

Hypothesis

There is no significant difference between online sellers towards new

normal online selling business risks and prevention practices.

Scope and Delimitation

This study determines the new normal online selling business risk and

prevention practices of the Online Sellers of Barangay Calumpang, General

Santos City. The participants of this study will be the online sellers in Barangay

Calumpang, General Santos City. The data gathering period will be from the first

week of February to March.

Significance of the Study

This study will be undertaken to find out the new normal online

selling business risks and prevention practices that can help online sellers

to avoid the risks of new normal online selling. This study is beneficial to

the following:

Online Sellers. The direct recipients of the output of this research are the

online sellers. This study will guide them for a better online selling In new

normal situation and this study may also help them to avoid the risks of

new normal online selling.

Customers. The research benefits the customers of the sellers in the new

normal online selling. This research will help them to be aware of the risks

of the new normal online selling that might effect not just the sellers but

also the customers.

Online Entrepreneurship. This study can be also helpful to online entrepreneur.

The risks of online selling in new normal might also effect not just the online

sellers but also the business owners. This study will guide them to learn about

the risks of new normal online selling and how to prevent it as a entrepreneur.

Delivery Driver. This study will be very beneficiaries the delivery driver. This

study may help them to recognize different types of risks of online selling in

this new normal situation that can help them to prevent it and to have and

to give the sellers and customer a better transaction.

Researchers. This would allow them to fulfil their requirements in the field of

Practical Research. It might allow them to have information about online

shopping. Researchers will be mindful of purchasing products online. It will also

help them to be mindful of online shopping.

Future researchers. It will help them as a tool for further information and for

improving and developing better ideas. It will give them business risk data. It will

allow them to gain sufficient knowledge about online shopping and to better

understand online shopping prevention practices.

Conceptual Framework

It this section, it shows the conceptual paradigm to present the figure of

the study.

Online Selling Business

Online sellers Risks and Prevention
Practices

Figure 1. Conceptual Framework of the Study

Notice that the variables of the study are explicit in the paradigm

presented in Figure 1. In the illustration, the two variables are 1) online sellers

engaging in online business, and 2) online selling business risks and practices.

The former is the independent variable while the latter is the dependent variable.

In the diagram, the arrow shows relationship of the two variables in the study.
 Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the related literature and related studies that serves

as the foundation of the study. This chapter shows and explains the ideas that

are involves in the study.

A. Related Literature

New Normal Online Selling

Tan et al., (2020) in his study revealed that in December 2019 a series of

pneumonia cases emerged in China, later identified as the novel corona virus

named severe acute respiratory syndrome corona virus 2 (SARS-CoV-2) (also

known as the disease name COVID-19) Since December 2019, the virus has

spread worldwide and on March 11th 2020 the World Health Organization

declared a state of a pandemic.

Reddy (2020), explained that due to the COVID-19 pandemic, the way we

work has totally changed, the way we used to shop and communicate with

people. People are only going out only to buy essential items from the retail

stores and still they are worried to go out to buy essential goods because they

are constantly worried about getting infected.

In this case Jarvis (2020) stated that government imposed lockdown and

new social distancing measures are shaking up entire industries and retail is not

exempt. Many business have started selling online as consumers who might
have looked to the high street for their shopping three months ago are now

setting their sights on the web. It is the intensification of a trend that was already

in full force. The migration of commerce to online plat forms and an evolving face

of physical retail.

Furthermore, Gaikwad & Kate (2016), said that that the practical use of

various online tools by business people leads to new opportunities. The Internet

is a trusted source by consumers before buying products and services.

Businesses use the Internet as a marketing tool for financial success and to help

foster communication with visibility and online sales channels and social media

advertising to be a powerful way to reach various markets for business

expansion (Banica et al., 2015).

In this situation it has transformed consumer behavior significantly since the

Industrial Revolution with the invention of automobiles, appliances, and

airplanes. This was followed by the telephone, television, internet and now the

social media and the user generated content. The digital technology is making

wants into needs. For example, we did not miss the cell phone but today you

cannot live without it. Today internet is as important as electricity and more

important than television. How technology transforms wants into needs has

significant impact on developing new habits such as online shopping, online

dating, or online anything.

Basig, P. and Raina,R. (2020) indicated that the impact Covid-19

pandemic is exerting on e-commerce The e-commerce industry gained its

momentum much before the pandemic, however, with the implementation of

pandemic lockdown a pressure has been imposed on e-commerce companies,

not for the non-essentials but the essential commodities like groceries and

medicines which can be seen both as a challenge as well as a greater

opportunity. As earlier, shopping online was a matter of convenience but now it

has become a necessity to protect oneself from the virus by avoiding crowded

places. The Covid-19 lockdown has resulted in a rise in online sales, as it has

also been estimated that the industry would have a growth of 200 billion dollars

much before the predicted 2026.

In addition, Nielsem (2020) said that the pandemic outbreak and its

following consequences have led to changes in consumer behavior. The

consumer behavior threshold levels that show early, changing, spending patterns

for emergency items, health and food supply. Every single threshold level

correlates with different consumption levels. Mostly buying products during

pandemic are toilet paper, disposable gloves, freezer, bidet, kettle bells, bread

machine, paint by numbers, puzzle, peloton, coloring book, air purifier, treadmill,

stationary bike, yoga mat, refrigerator, exercise ball and exercise equipment

(Andrienko, 2020).

As studied by Muller & Peres (2019) mentioned that Consumers adapt to

online shopping. Shopping online offers greater flexibility in terms of time,

location, and product variations. The existence of this pandemic can be

encouraging consumers, who do not like the way shopping online until finally

switching to shopping online. Only 10% of consumers who adopt online shopping
because of a pandemic have already paid fees and experienced the convenience

of online shopping and realize that a few days waiting for shipping might be in

vain. Mr. Uy Chan stated that the new normal has also urged online sellers, e-

commerce platforms, and restaurants to refine collaboration methods with its

partner channels to ensure quality service. The principle behind online selling is

still intact and similar to traditional selling wherever you go. It is still just a

channel.

In addition , Mr Carbonell (2020) noted that e-commerce plat forms and

online sellers would continue to grow , even in a post - pandemic society. To sum

up according to a 2020 survey of 2,200 adults in the US, 37% of survey

respondents considered switching to online shopping after covid 19. Also, even

late users, who had never used online shopping

Business Risk

The results suggest that when the business risks of a client are high,

auditors appear to scrutinize those risks and carefully analyze the proposed

accounting practices of a client. However, if there is less concern about the

business risks of a client, auditors may be able to consider the ambitious

reporting strategy of the client if retention benefits are high (Chang, 2016).

According to Scott (2019), the threats to e-business resulting from

protection and privacy violations are well understood. Study, however has given

very little attention to other significant threats to e-business. Using a socio-

technical approach, we surveyed a diverse group of nearly 200 participants in

this study to determine their understanding of 16 e-business risks, collected from

research and literature on practitioners.

In uncertain information-poor emerging markets where problem-based

isolated risk management models no longer seem to apply, evaluating business

risks becomes particularly precarious (Haley, 2015).

Entrepreneurs consider risk as given and concentrate on managing the

results at any given risk level; they also frame personal values in their problem

spaces and assume greater personal responsibility for the results. Bankers

concentrate on target performance, trying to manage risk within structured

problem areas and avoiding circumstances where higher levels of personal

responsibility are at risk (Sarasvathy et. al, 2017).

According to Sukumar et. al, (2017), It is interesting to recognize a lack of

comprehensive, thorough and credible research into the risks associated with e-

business, especially in small to medium-sized enterprises, while reviewing a

number of academic literature articles (SMEs). As such, this paper offers a

bridge to the perceived void in e-risk literature by exploring SMEs' perceptions of

e-business risk and attempting to create a research agenda that will make a

major contribution to both academia and industry.

In estimating the adjustment of the capital structure of the organization, we

show that risk plays an important role. We notice that the process of adjustment

is asymmetric and depends on the risk type, its size, the existing leverage of the

business, and its financial status (Baum et. al, 2016).

 For vertical coordination processes in food networks, E-business offers

support and improvement options. However, e-business adoption in food

networks is low as e-business offers are open, as the communication of

confidence and control safeguards is not sufficiently realized as a basis for the

transaction decision (Fritz & Canavari, 2018).

Business risk is the risk that the method does not deliver the level of

effectiveness needed to accomplish one or more strategic goals at the entity

level (Bell, Peecher, & Solomon, 2016). Graduate accounting students with

auditing experience show a significant understanding of the relationships

predicted. (1) Generated process-specific business risk judgments with a few

exceptions that are positively related to RMM judgments for the essential

processes of the product differentiation strategy and not for the non-critical

processes; (2) produced process-specific business risk decisions that mediated

the association between output of the production process and revenue RMM;

and (3) correctly assessed the highest RMM of revenue when the three product

generation processes performed less well (William F. Wright, 2016).

Data privacy and protection have been declared by government and

business organizations as major obstacles in the growth of consumer-related e-

commerce. Risk perceptions of Internet privacy and protection have been

described as problems for Internet technology users, both new and experienced

(Miyazaki & Fernandez, 2018).

 According to Crook et. al, ( 2017), Compared to the management of social

rented housing in Britain, despite its growing significance, relatively little is known

about how private landlords manage their property. This paper reports from a

recent survey in Scotland that indicates that landlords limit property acquisition

near where they live to handle the competition and business risks they face. This

is because, given the complexity of the sub-markets where they work and the

data asymmetries involved, their personal knowledge of markets is critical for risk

mitigation.

Preventive Practices

The pandemic Covid-19 has already taken some of the important things

on our economies and people In our country. The increased of online business

transactions, virtual meetings across the Philippines have become the “new

normal” as people want to keep normalcy in their lives in amid pandemic

restrictions.

Business and technology expert said that the post COVID-19 world will be

completely different from the pre COVID-19 world. In the middle of a crisis, it’s

tempting to label any major disruption as ushering in a new normal. However, at

least in terms of business models, the new normal going forwards may be a lot

more like the old normal than we think. (Evan, 2020)

According to Arreola (2020), Here in the Philippines, 64% of Filipino

internet users are spending more time on social media, with 23% shows an

increased activity in their online shopping activity. The consumers are more
embracing the online shopping in this pandemic situation, Business owners have

embraced the digital phenomenon for online shopping even more. The arise of

online selling and business activity, the government always reminded the online

sellers to be more responsible with paying their tax, with the Bureau of Internal

Revenue’s (BIR) issuance of Revenue Memorandum Circular (RMC) No. 60 -

2020 entitled “Obligations of Persons Conducting Business Transactions

Through any Forms of Electronic Media and Notice to Unregistered Businesses.”

The Circular command all business owners who engaged more in online

transaction to register their businesses with the BIR and be responsible of paying

their taxes. Also, under this RMC, online business owners are encouraged to

register their businesses no later than July 31, 2020 to avoid penalties for late

registration.(Arreola,2020)

Regarding with transaction, deliveries were growing at a rapid clip prior to

the pandemic and now even higher demand as shelter in place restrictions are

put in place. Amazon and Instacart alone need almost 400,000 people to meet

the growing delivery demands. Ridehailing companies have pivoted as drivers

shift from moving people to delivering food and products. As people stay home

and can’t go out, they will be demanding more of their e-commerce and local

food venues to deliver. Some cities are responding by allocating more space at

the curb for these delivery services to keep access while maintaining social

distancing. It’s not yet clear how these services will manage over time but these

allocations will help set the groundwork for more curb space management in the

near future.( Papandreou,2020).

 Moreover, American company, PayPal(2020), suggested that always

provide an accurate delivery times on your site. Make it more easy for your

customer to know the shipping and delivery time information they need. State the

shipping times clearly and be conservative – don’t predict the delivery times.

Always remember that during busy buying periods, customers will want

everything to be fast, while your carriers are likely to be more busier, set realistic

expectations to your customers so you can avoid complaints. Aim for your

delivery times to always be less than 20 day.

During COVID -19 pandemic more customers are buying online. Local

lockdown and quarantines, together with concerns over health and hygiene,

mean that there are only few numbers of shoppers in physical stores. When

shopping locally, more shoppers are using click-and-collect and contactless

payment options to prevent the risk of covid-19 virus. More to that according to

Dr. Gabriela Andujar Vazquez, it is highly improbable that the Covid-19 virus can

survive on its way to our homes. Nonetheless, we’re still highly encouraged to

take proper precautionary practices to ensure extreme safety. You can practice

that by disinfecting your packages first, and washing your clothes before wearing

them. (Ibasco, 2020).

According to Aite group study(2020), the new economic and workforce

environment is likely contributing to the growing numbers of potentially fraudulent

transactions. Banks and lenders are coping with a large workforce migration to

remote working conditions, branches are closed or have limited access, and

card-not-present (CNP) activity has increased. Meanwhile financial institutions

are quickly moving toward digital channels and have experienced a dramatic

250% increase in digital transactions.

This pandemic has forced business owners to adopt a entirely new ways

of doing business. That’s also true for the criminals who see disturbance as an

opportunity to commit fraud.(Legters,2020).

Online fraud is not limited to attempts to steal money or information,

however. With the great deal of fear and uncertainty caused by the Covid-19

pandemic, combined with increased use of social media, the digital environment

is ripe for the spread of misinformation, some of it intentional and some the result

of well-meaning ignorance.(Manila Times, 2020).

America’s biggest business company, Forbes (2020) suggested that,

Commit your information with caution: When you make a purchase online, there

are likely two separate intake forms: a guest checkout and a checkout that

commits you to having an account with the company. The guest checkout asks

for your information – but only what’s needed to validate your payment and get

your items shipped. The member checkout likely asks for more information so the

company can contact you and keep you on file. These data sets are typically

stored separately so you should make a thoughtful decision every time you check

out online. My advice from a risk management perspective is to only register with

the companies that you plan on doing business with time and again. The more

data you have on file in the world, the larger your vulnerability is.
 For the online sellers, American Company Paypal (2020) suggested that,

to protect your business from criminal, you have to monitor your transactions and

you need to make your bank accounts reconcile daily. No one knows your

business as well as you do. You know your customer and their buying patterns.

Monitor your accounts and transactions looking for any red flags, such as

inconsistent billing and shipping information, as well as the physical location of

your customers.

As we head into the new normal, so too must the fraud industry. Business

owners needs to have effective practices to combat cybercrime as the online

environment undergoes this period of rapid transformation. Many businesses will

be relying on solutions being flexible, easy to use and that can be quickly

integrated into their business structure. Businesses need quick ways to respond

to fraud during COVID-19 (Jendruszak,2020).

B. Related Studies

New Normal Online Selling

As stated in the study of Rahman El Junusi (2020), entitles " Digital

Marketing During the Pandemic Period; A Study of Islamic Perspective & quot;.

This study shows that the advances in information technology have change many

aspects of business, marketing activities, and gave birth to online transaction

methods. It played a role in the development of digital marketing, especially

during the covid-19 pandemic. Business have transformed transactions through.

At the time of pandemic digital marketing accelerated which has an impact on the
changing consumer behavior towards online transactions. This study uses a

critical approach and the participants of this study were the selected internet

users of Indonesia.

According to the study of Himgiri Chaudhary (2020), entitled & quot;

Analyzing the Paradigm Shift of Consumer Behavior Towards E-Commerce

During Pandemic Lockdown & quot;. The study pointed out that people got

scared to go out From their homes and hesitant to go out to buy their goods.

Panic buying has seen and to avoid the fear of being contacted by the Covid-19

virus, people are giving preferences to the E-Commerce sites to buy their

essential goods. In line with this E-Commerce industry is growing tremendously.

The costumers are shifting their buying behavior from offline retail stores. The

participants of this study were the 150 customers of (FMCG) and uses purposive

sampling design.

As presented of Darius Zumstein et.,al (2020), entitled "Swiss Online

Retailer Survey 2020: The Sustainable growth of E-commerce and Challenges in

times of Crisis". The result of their study shows that the Swiss Online

trading has been experiencing an unexpected boom as a direct result of the

coronavirus pandemic: In half of the online shops, products orders have grown

by more than 20 percent compared with the previous year. Since the corona

virus, an unexpected high proportion of home and living products, food, sports

goods, multimedia, electronic equipment, and computers are the products that

have been most ordered online. A total of 330 Swiss online shops participated

with this study and uses Purposive sampling design to gather data.
 As indicated in the study of Lobel Trong Thuy Tran (2020), entitled "

Managing the Effectiveness of E-commerce Platforms in a Pandemic ". The

study finds a positive moderation effect of pandemic fear on the relationship

among PEEP, economic benefits, and sustainability consumption. The

contribution of this study in its examination of how economic benefit mediates the

PEEP and sustainable consumption relationship which is dependable on the

levels of pandemic fear. The primary research method of this study is a

quantitative survey an analysis. Using the sample of 617 online

consumers with PLS analytical technique.

According to the study of Jagdish Sheth (2020), entitled “Impact of Covid-

19 on consumer behavior: Will the old habits return or die?”. This study found out

that lockdown and social distancing has general significant disruptions on the

consumer behavior. All consumption in time bound and location bound. With time

flexibility but location rigidity, consumer have learned to improvise in creative and

innovative ways. The work life boundaries are low blurred as people work at

home, study at home, and relax at home. Since the consumer is unable to go to

the store, the store has to come to the consumer. As consumer adapt to the

house arrest for a prolonged period of time, they are likely to adopt newer

technologies which facilitate work, study and consumption in a more convenient

manner.

Based on the study of Anam Bhatti et., al (2020), entitled “E-commerce

trends during Covid-19 Pandemic”. The result of their study shows that Covid-19

has significant impact on e-commerce of the world and in some cases negative
impact but overall e-commerce is growing rapidly because of virus. Coronavirus

compelled customers to use internet and make it their daily routine. Furthermore,

many challenges facing by retailers in e-commerce, such as extend the delivery

time, difficult face during movement control, social distance and lockdown. The

process of shipments and supply is quite slow now, but still people buying

because they do not have another alternative. Hence, people moving towards

technology due to virus.

As mentioned in the study of Corresponding Authors: Muhammad Kashif,

Aziz-Ur-Rehman, and Muhammad Kashan Javed. Entitled COVID-19 IMPACT

ON ONLINE SHOPPING. The study found that

almost 50% of their participants said that they are not into online shopping to buy

their essential goods in times of lockdown due to the covid-19 pandemic

outbreak. While just 37% said that they are involved into online shopping in times

of corona virus pandemic outbreak. The aim of the study is to know if the corona

virus is pushing people to do online shopping besides this, it is also examined in

this study that if people will continue buying products online with the same rate in

future when corona virus is over. The study uses convenient sampling design.

The questionnaire has been circulated on social media for

collecting responses from 549 people were sent the questionnaire only 205

people did respond.

According to the Study of Alina Butu et.,al (2020), entitled "The

Impact of COVID-19 Crisis upon the Consumer Buying Behavior of Fresh

Vegetables Directly from Local Producers. Case Study: The Quarantined Areaof

Suceava County, Romania. The study results confirm the hypothesis that the

COVID-19 pandemic induced significant changes in consumer purchasing

behavior of fresh vegetables. Consequently, consumers are more determined to

place online orders of fresh vegetables directly delivered by producers. Prior to

enforcing the state of emergency, 12% of the respondents from the quarantined

area of Suceava chose the online purchase of fresh vegetables directly delivered

by producers. An increased percentage of the respondents (60%)have stated

that they intend to adopt this system of buying from short food supply chains

(SFSCs)following the COVID-19 crisis. The preference of consumers for digital

instruments of gathering information, ordering, and payment proves that the

changes in consumer buying behavior are not merely visible in the purchase

intention within this distribution system, but also in their wish for digital

transformation of SFCSs. The fact that 95% of the respondents have declared

that they prefer a personal selection of the products shows that they choose to

involve directly and emotionally in the process of selection and purchase. This is

a feature that has not undergone any changes in the timeline determined by the

period before March 16, after this date, and after emerging from the COVID-19

crisis.

The New Consumer Behaviour Paradigm amid COVID-19: Permanent or

Transient, written by Seema Metha et.,al (2020). The study showed that a

noticeable change in consumer’s attitudes, behavior and expectations has also

been conveyed by research agency Kantar in their report on ‘Market Dynamics

During COVID- 19: Indian Consumer Sentiments Analysis’ (2020). This survey

was carried out with 18+ years of consumers, covering a sample of 11,000

household, 19 cities and 15 states across India. Consumers conveyed heavy

concern about pandemic and observed that disruption (45% of respondent)

bothers them more than health concerns (31%). The survey also reported

significantly reduced spends across physical as well as online formats. Survey

also reported about planned purchases being deferred and a new learning to live

with less. The survey points out the consumers’ interest in saving through

investments, insurance, health and hygiene products.

In the Study entitled & E-commerce, Trade and the COVID-19 Pandemic,

written by Bhagirath Lal Das (2020). The study show that the implications of the

COVID-19 pandemic may last for a long time, and e-commerce in goods and

services will need to continue to adapt to the new environment. COVID-19 could

trigger further digitalization of society and the development of policies and rules

to regulate online trade. While the current situation is rapidly evolving, and

suggestions may become outdated at the same pace as the development of the

pandemic, the question is what lessons can be drawn in the context of e-

commerce. The COVID-19 pandemic has made it clear that e-commerce can be

an important tool/solution for consumers in times of crisis, and that it is also an

economic driver, including for small

businesses. However, the pandemic has highlighted not only the

importance of digital technologies in general, but also several vulnerabilities

across the world.

Business Risk

Business risk is the possibility that decrease profits or even leads in

losses. It may be incurred as a result of uncertainties and whether demand for a

specific product and it may decrease as a result of changes in consumer tastes

and preferences or because of increased competition from other producers. The

reduction in demand will lead to lower salesand lower profits.

According to the study of Kot (2015), There is a wide variation in the

market climate nowadays, caused by economic and political factors. This sheds

new light on the problem of risk management in businesses. Companies who

want to remain in the market must adjust their risk exposure in a dynamic way.

The article provides an overview of multinational energy firms' market risk

management models. The study states that at present, due to volatile financial

markets, a company operating on foreign markets cannot operate efficiently and

be competitive without continuous risk recalculation in any evolving business

climate. Companies are starting to treat risk management as a standard

component of the strategy of the organization. In order to manage organizations

effectively, large multinational corporations, particularly those operating on

different continents, are developing new processes and tools to effectively

estimate risk under different social, political and legal conditions. Risk detection

and evaluation, which can hinder the organization from achieving its goals, helps

it to find ways to manage the risk and thus to create a risk reduction plan.

Determining the level of individual risks makes it possible for policymakers to

take actions within the limits of appropriate legal and economic risks, without the

risk of negatively impacting the viability of the business.

As stated by the UKDiss (2019), Every day there is a possibility that there

will be some kind of financial losses, crisis, accident, or emergency. It is possible

to define anything that prevents access to key processes and activities as a

disaster. This study came up to the solutions, each department in the company

will have a detailed business continuity action plan detailing the measures to be

taken in different emergency situations to restore critical processes. When a

disturbance happens, all workers will have their own copy of the schedule, ready

to use immediately. Employees will take control of the business continuity

activities of the company and this initiative will be further integrated in the

organizational culture of the organization.

This series of case studies explores the possible business risks for

businesses that supply deforested areas with commodities. The series highlights

three businesses (IOI Company, JBS, and Unified Cacao) and summarizes the

market threats and adverse financial effects faced by the three businesses.

Overall, risks can affect the balance sheet of a company (assets, liabilities,

equity, valuation), income statement (income, expenses, profitability, net

revenue), and cash flow. Ultimately, the underestimation by CHOC of

operational, regulatory and business threats compromised its corporate strategy.

The outcomes of the writing up order declared in July 2017 for equity and debt

holders at the time of publication are uncertain. It will also be important to

address the future of the company's plantations, both their operation and
ownership, through legal proceedings. This also, with pass-through to investors,

has direct consequences for the valuation of the debt or equity of the company.

For their anticipated result, companies may calculate risks and the likelihood they

may occur, and they can also reduce or eliminate them. (Ceres,2017).

Based on the study of Begenau, et al.(2015), This paper analyses the

interest rate exposure and credit risk of U.S. banks. In terms of simple factor

portfolios, we leverage the factor structure in interest rates to represent several

bank positions. This method offers time-varying exposure indicators that are

comparable across banks as well as across an individual bank's business

segments. Most banks, and in particular large banks with substantial trading

enterprises, in both years, both derivatives and other companies were positively

revealed. What has changed is that conventional business exposure became

comparatively more significant in 2013 than that of derivatives. There is at the

same time, a lot of heterogeneity again. For small banks, exposure to derivatives

appears to be small compared to that of other firms, and for certain banks, it is

actually negative. We may infer that while there is some currency risk through

securities, it is mostly restricted to small banks with little trading business were

exposed.

This study clarifies and formalizes the stance of the company that certain

risks, such as a pandemic, are threats to strategic goals such as business

growth. Leaders should then agree in advance that its presence would cause

swift and rapid action to minimize the consequences, guided by a predetermined

team of owners and acts, no matter how remote a danger may seem.(Meulen,

2020)

As claimed by Consilue (2018), Management needs to recognize the

goals nowadays and businesses need to improve the capacity to move quickly

when needed. Corporate culture should be built hand in hand with the theory of

change management. One of the ultimate things for long-term survival is the

capacity for rapid response and value-based management. Examples of attitudes

towards change can come from the very top. The consultant is assured that the

recommended solution brings value to the client, but this must also be

understood by the client himself. It is of extreme importance that the consultant

stays on the side of the client and strengthens the degree of trust further.

While the organization was an early adopter of an NDPE policy and has

invested in many pilots and initiatives for sustainability, the public documentation

of Wilmar should be strengthened to allow committed investors to analyze more

efficiently. Wilmar is in a unique position to lead social activities in palm oil

production as a publicly traded firm and a leading player in the global palm

supply chain.It can be anticipated that continued interaction with stakeholders

and improvements in disclosures would help Wilmar retain and strengthen its

value proposition with sustainable investors. (Guindon, 2017)

According to Todd Herman Associates (2020), Several areas that were

not truly analyzed by management were seen to have better protection than

anticipated. Specific measures needed to mitigate many remaining threats were

identified in the internal and external threat assessments. If these steps are
completed, management in charge of the Information Technology role will be

better able to assess possible risks through the skills and techniques gained

during this engagement.The client has agreed to proactively evaluate and

resolve risks in its system environment, to convey to staff that system protection

is critical, and to increase the trust of its clients and other related parties in the

controls that protect confidential personal financial information.

In stated by Williams and Hausman (2017), We provide a first step in the

direction of deepening our understanding of social media market threats in this

article. A drawback of current work is (1) the work does not go deeper to analyze

these risks in order to provide theoretical and realistic advice about how to think

about or deal with them The work offers lists of possible risks with little study or

clarification of those risks. Our categorization of social media risk provides a

starting point for the development of a risk registry for social media, which can be

used as a framework for organizations to identify social media threats and to

begin to recognize the impact they have. Ideally, this social media risk

management process would be part of or linked to, broader business risk

governance considering the interrelatedness of risks and the nature of risk

chains.

According to Kita et al (2017), In the article, we used data on 489 buyers

from the years 2012-2015, including their addresses and other geographical data

on customers and their transactions, and incorporated them into the GIS

environment. Subsequently, the data was analyzed and reported using GIS and

user maps were created. The outcome of this research is to demonstrate that
GIS can play an important role in the e-shop decision-making process to support

the experience of a manager.In order to provide a stronger knowledge capability,

the regional findings have been statistically analyzed.

As stated in the study of Rahman El Junusi (2020), entitles Digital

Marketing During the Pandemic Period; A Study of Islamic Perspective. This

study shows that the advances in information technology have change many

aspects of business, marketing activities, and gave birth to online transaction

methods. It played a role in the development of digital marketing, especially

during the covid-19 pandemic. Business have transformed transactions through.

At the time of pandemic digital marketing accelerated which has an impact on the

changing consumer behavior towards online transactions. This study uses a

critical approach and the participants of this study were the selected internet

users of Indonesia.

Preventive Practices

Fraud can become a major impact on e-commerce business, and it's a

bottom line, either malicious or accidental.

According to Maguire, P. (2020), whether you have just started your e-

commerce brand or transmitting your business online, the basic steps to avoid

fraud is to understand the significance of prevention. The purpose of a fraud

prevention plan is to put a business in the best possible position to minimize risk.

Moreover, owners, managers, and advisory who know about fraud can

help to prevent small businesses to become a victim, Bonita, K. (2020). The

study shows that, compared to larger businesses, the most vulnerable to

encounter fraud and suffer an irregular median loss are usually small businesses.

Thus, owners of small businesses are strongly encouraged to know how fraud

can affect their organizations to prevent or detect fraud and avoid the

overwhelming effect it can produce on the small business’s viability.

The research by Soomro, Z. et al. (2019), recommends e-trailers to deal

with this issue as a management challenge and counter-strategies should be

amplified in technological, human and organizational aspects. The eight stages

of fraud management life cycle framework of Wilhelm (2004), are focused on

general fraud management, includes input from, telecommunication, insurance

and banking sectors. These stages are deterrence, prevention, detection,

mitigation, analysis, policy, investigation and prosecution of frauds. Furthermore,

implementing different measures such as information and security and strong

authentication system are some of the prevention activities that makes the fraud

challenging to occur.

The study by Sow, A. et al. (2018), recommends an effective fraud

prevention measures to lessen the fraud risk surrounding Malaysian SME's and

other SME's emerging countries. The study states that culture of honesty and

high integrity, anti-fraud processes and controls and appropriate oversight

functions have a positive and significant effect on fraud prevention mechanisms.

Furthermore, the study of Amasiatu, C. & Shah, M. (2018), shows that the

framework could support the retail managers better understand and manage this

growing business problem and open new streams for further research. Wilhelm’s
fraud management framework, the most promising for adaptation and application

to the first party fraud context. By modifying an existing framework according to

the contextual requirements, the authors make the framework much more

relevant to first-party fraud management.

The study by Yang, Q. & Wei, X. et al. (2016), found that trading fraud in

online e-commerce can be detected and prevented. The key problem of trading

online is order fraud, and it is very harmful to businesses. The real situation and

data of Dangdang were used with these two steps to focus on the determination

of these online order frauds. First, statistical analysis was used to determine the

fundamental differences between fraudulent orders and normal ones, followed by

the logistic regression model. Finally, various analyses were designed to

examine the validity and effectiveness of the Fraudulent orders’ Detection Model

using twelve identifying features, which is the best model approved by the

company in identification and prevention of fraud behaviours in e-commerce

services.

The result from the study of Maitlo, A., Ameen, N. et al. (2019) suggests

that the lack of leadership support, lack of employee willingness to share

knowledge, lack of employee awareness of knowledge-sharing, inadequate

learning opportunities; lack of trust in colleagues, insufficient information-sourcing

opportunities and information and communications technology infrastructure, a

weak knowledge-sharing culture, and lack of feedback on performance, and lack

of job rotation, are the major barriers to effective knowledge-sharing for

preventing identify theft in online retail organizations. Therefore, the author's

study presents solutions for removing existing barriers to knowledge -sharing in

preventing identity theft. This is important to reduce the number of cases of

identity theft in the UK.

The lack of individual awareness of knowledge sharing practices to

prevent identity theft is a significant issue for online retail organizations, Shah,

M., Maitlo, A. et al. (2019). Furthermore, the study identified that particular staff

members within online retail organizations from the information security and

fraud prevention departments often share their knowledge as a community.

Research Gap

Online shopping fraud is a major issue or risk when shopping online.

Everyone can buy and sell almost anything over the internet these days. Online

shopping makes searching for a product comfortable and easy because a

customer can search the company’s website for the desired product from the

comfort and privacy of their own home. However, since there is no face to face

interaction or the customer is not able to physically see or touch the item they

have to trust the online seller and website they are shopping from. Online

shopping fraud exists in many different ways. In the study entitled "The Need to

Enhance Online Consumer Protection in Kingdom of Saudi Arabia (KSA)" by

Abdulrahman Aloufi, 2020. The study found out that E-commerce has evolved to

become a functional and mainstream tool of global trading, including in the

Kingdom of Saudi Arabia. Consequently, online consumers need protection just

as much as consumers in the offline world. They failed to discuss that Online

sellers also need protection just like with online shoppers. Which we include in
our study that we consider the protection of the online sellers especially among

the opportunist bogus buyers. Our study focuses on prevention practices that the

online sellers may use to avoid transactions with bogus buyers and to give them

an idea about the business risk that they may encounter while selling and

transacting online.
 Chapter III

RESEARCH METHODOLOGY

This chapter will discuss the general description of the research design,

respondents, locale of the study, sampling design, research instruments and

tools, data gathering procedure, and statistical treatment.

Design

The design of the study is a descriptive-correlational research design. This

design involves the description of the variables and the relationships that occur

naturally between and among them. There is no manipulation done by the

researchers on the variables. The design is suitable to use because the purpose

of this study is to determine the relationship of the online sellers towards the new

normal online selling business risks and prevention practices.

Participants 

The respondents of the study are composed of 40 out of 100 online

sellers, which comprise 40% of the estimated total population.

The respondents came from the forty-three (43) purok of Barangay

Calumpang namely, Christian Village, Sto. Nino Village, Sta. Cruz, Lower Puting

Bato, Upper Puting Bato, Crisostomo, Lower Acharon, Upper Acharon,

Bangsamoro, Malamboon, Bliss, Maliwanang, Villanueva, Fernandez, Accord,

Protacio, Magnolia, Oblipas, Cahilsot, Malinawon, Veterans, San Miguel,

Carmenville, Placida, Reformville, Emiliana, Quilantang, Rovalgon, Lily Of The

Valley, Greenville, Opringville, Tomasa, Bayanihan, Saeg, Felomina, Estrella,

NPC, San Juan, New Bohol, Catapang, and Mendoza.

Locale of the Study

The study will be conducted at Barangay Calumpang, General Santos

City, this place is selected for knowing the possible risks that online sellers might

experience as well as the prevention practices to address business risk and the

significant relationship between the new normal online selling business risks and

prevention practices.

Figure 2: Map of Barangay. Calumpang

Sampling Design

           The researchers will be using the purposive sampling design for this

study. The purposive sampling, also known as judgement, selective or subjective

sampling, is a form of non-probability sampling in which researchers rely on their

own judgment when choosing members of the population to participate in the

study. A purposive sample is where a researcher selects a sample based on

their knowledge about the study and population. Participants will be selected

according to the needs of the study, hence registered online sellers, applicants

who do not meet the profile will be rejected.

Instrumentation

The researcher will be using a research-made questionnaire that will

undergo validity testing by three (3) experts. Researcher-made questionnaire

refers to the instrument to be used in a research prepared or crafted by the

researcher. Through the internet, the questions will be given to the respondents

using Google form. This instrument will be the basis for determining the business

risks and prevention practices of the online sellers. This instrument will have

questions that address the study’s problem. 

Procedures
 The steps to be followed in the conduct of the research and the

procedures for data collection are as follows:

The researchers will ask permission and approval from the school

principal and the barangay captain of Barangay Calumpang to conduct the study.

Once permission is secured, the researchers will recruit the respondents and ask

for their consent to participate in the study. If they agree, the electronic questions

will be given to the respondents via Messenger. Once the respondent finished

answering the questions, they will have to click the submit button in the form.

Data Analysis and Interpretation

The researchers will use the frequency distribution to analyze the data

given by the respondents. The frequency distribution is one of the tools used for

data analysis. This will determine the relationship of the online sellers towards

the new normal online selling business risks and prevention practices.

Operationalization of Variables

The following terms used in our study are operationally defined. It is

essential for the respondents to understand more and to clarify our topic. The

following terms are used in the study:

New Normal. It is a new way of living and finding some sense of normalcy,

because of the covid-19 pandemic outbreak.

Online Selling. A kind of Business where it is set up online. Refers to buying and

selling of goods or services using the internet.

Business Risk. It refers to the danger that can be acquired through New Normal

Online Selling.

Prevention Practices. It is an act that online sellers used to keep them safe in

acquiring sickness and to prevent transactions with bogus buyers.