Advantages and Disadvantages of Operating Online for the Retailer

Created by: sunnybethy
Created on: 09-05-17 16:23


	Advantages and Disadvantages of Operating Online for the Retailer
	Advantages No need to distribute goods to shops Easy to make changes to products and prices Customers only need a web browser, and Internet connection and a means or paying electronically Inexpensive way to reach new markets Minimal start up time and investment needed: Internet businesses can be set up from home The organisation can be located wherever it likes	Disadvantages Skilled staff needed to develop and run an efficient website Ensuring online payment security is difficult Need a delivery service and the facility to handle returns Customers limited to those with access to the internet and who can pay electronically If the retailer has high street shops as well, they may find that their high street shops suffer and have to close down because they cannot compete with the online shop
	Evaluation A website or online shop is the way in which organisations operate online. To operate successfully online, organisations need a website through which customers can find information and buy the organisation's goods and services. There are benefits to the organisation as well as to the customer.Overheads (for example rent, salaries and fuel bills) are generally lower for online shops, so they can be more profitable than high street shops.This means that online shops can afford to sell products more cheaply and still make a good profit.

Advantages and Disadvantages of Operating Online for the Retailer

Advantages

No need to distribute goods to shops
Easy to make changes to products and prices
Customers only need a web browser, and Internet connection and a means or paying electronically
Inexpensive way to reach new markets
Minimal start up time and investment needed: Internet businesses can be set up from home
The organisation can be located wherever it likes

Disadvantages

Skilled staff needed to develop and run an efficient website
Ensuring online payment security is difficult
Need a delivery service and the facility to handle returns
Customers limited to those with access to the internet and who can pay electronically
If the retailer has high street shops as well, they may find that their high street shops suffer and have to close down because they cannot compete with the online shop

Evaluation

A website or online shop is the way in which organisations operate online. To operate successfully online, organisations need a website through which customers can find information and buy the organisation's goods and services. There are benefits to the organisation as well as to the customer.Overheads (for example rent, salaries and fuel bills) are generally lower for online shops, so they can be more profitable than high street shops.This means that online shops can afford to sell products more cheaply and still make a good profit.

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Advantages and Disadvantages of Operating Online for the Retailer