E- commerce

What are the advanteges and disadvantages of ecommerce

  • Created by: Charlotte
  • Created on: 19-04-11 09:58

BCS E-commerce

E-commerce is short for ‘electronic commerce’. 

It means buying and selling goods using the Internet.

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BCS E-commerce

Using E-commerce gives businesses access to customers all over the word.

This is known as ‘The global market’ which is reached by means of a website.

Think of examples of websites you or your family frequently use to make purchases.

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Disadvantages of e-commerce for customers

  Customers need to own or have access to a computer and be on-line and know how to use the Internet.   It is not easy to assess the quality and suitability of many products on the screen.  Inconvenience of returning unwanted goods.    Customers usually have to have a credit card to make Internet purchases   Security risks of buying on-line

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Advantages of e-commerce for customers

  Customers have a huge range of goods to choose from   They can ‘shop around’ the ‘web’ for the best bargain   Internet prices are often lower than in shops   Customers can shop from the comfort of their own home ’24/7’

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Advantages of e-commerce for a business

  Access to the global market means the business will be better known   A business using e-commerce can get ahead of its rivals   Increased sales, leading to increased profit   Savings on expensive showrooms   Reduced advertising costs   Increased sales leads to ‘economies of scale’   Business is open 24/7

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Disadvantages of e-commerce for a business

Being part of the global market means the business is in competition with lots of others   Designing and keeping the website up-to-date is expensive and requires specialists   Market research needs to be very detailed to meet the needs of customers in such a wide market   Packing and distribution of products can be very costly and involve long distances   Not all the businesses target customers have access to the internet.

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Hannah Rose Thompson


Concise but relevant!  

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