how and why organisations operate online

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how and why organisations operate online

a store's website is the way in which organisations operate online. to successfully operate online, organisations need a website to which customers can find and buy the goods and services from the organisation, the benefit are to the organisation as well as the customer

OVERHEADS e.g. rent, salaries and fuel bills are generally lower for online shops, this means they can be more profitable than high street shops, this is because more people will choose to spend their money online if it is cheaper, it allows online shops to sell the same products cheaper and still ensure a good profit. 

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advantages and disadvantages for the retailer


- no need to distribute goods to shops

- easy to make allterations to products and their prices

- customers only need a web browser, an internet connection and a way to pay online (bank card)

- inexpensive way to reach new target market

- the organisation can be located wherever it likes


- skilled staff needed to develop and run an efficient website

- ensuring online payment security is difficult

- they require a way to deliver parcels and facilities to handle the returns

-customers are limited to paying with their card (reduction in business)

- high street shops of the same company may suffer because more people are operating online

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