Unit 8 e-Commerce

P2 – The impact of introducing an e-commerce system to an organisation

Benefits of e-commerce:

Global Marketplace: By having a global presence a business can target a global audience, compared to the local audience attracted by a traditional store.

Why is having a global marketplace an advantage?

Give an example of a business and how this could help them.

Benefits of e-commerce:

24/7 Trading: As there is no store to be staffed trading can be carried out at any time, day or night, in all different time zones around the world.

Why is having 24/7 trading an advantage? How does this give businesses an

advantage over traditional stores?

Benefits of e-commerce:

Low Start -up & Running Costs: Compared to setting up a traditional store the start up costs and running costs of a website are relatively low. This is a great incentive to company owners.

Why is having low start up & running costs an advantage?

What costs would need to be considered when starting up an e-commerce site?

Benefits of e-commerce:

Search Facilities: most e-commerce sites now have a search facility where it takes just seconds to find the product you want. There are often different criteria you can easily add to find exact product you looking for.

Why are e-commerce search facilities an advantage?

How does this give a business an advantage over what would happen at a traditional store?

Benefits of e-commerce:

Fluid Pricing: this is when prices are increased or decreased quickly depending on circumstances. An example is when selling airline flight tickets, as more are sold and fewer are available, the tickets could become more expensive as the demand rises. Alternatively when selling products like holidays as the time draws closer, the prices could go down to ensure all the places are sold.

Explain the term fluid pricing. Why is fluid pricing an advantage?

Drawbacks of e-commerce:

Consumer Trust: consumers can worry about several different issues when using e-commerce sites, amongst those are worries over whether the company is a legitimate, worries over their personal information and security worries.

Lack of Human Contact: Some customers are

deterred from purchasing online because they cannot speak to anyone from the business directly. Some find this impersonal and prefer to have face to face contact.

Drawbacks of e-commerce: Product Description Problems: Some

consumers may worry that what is described on the e-commerce site might not accurately reflect the real product. This is especially difficult with colour options as some computers display colours slightly differently. The quality of the image used is also another factor.

Security issues: perhaps the main worry for consumers is that their financial details will not be safe, that the business will use them in some unauthorised way or security of this information may not be sufficient.

Drawbacks Questions

How may each of these factors affect an online business?

What can companies do to rectify these problems?

What implications will this have on the business?

Create a Mind Map

Use the software Mind genius to make a mind map of all the benefits of e-commerce

Think of / find 20 benefits Save it as a Jpeg

Task 1

Download the

template from the

RmMultimedia server

– its in the folder ITJO Its called Unit8_A1_Student_Template Using your mind map & the slides complete

slides 2-10 explaining the benefits / draw backs of E-commerce use the titles to help you

Create a blog – This will be your assignment!

EVERYTHING on your blog will be marked, by me & an external moderator

DO NOT put anything on your blog you would not put in an assignment

Use blogger.co.uk You will need a G mail email address – if

you don’t have one set one up

Create a blog…

You blog need to be titled…

Your name & Unit 8 E-Commerce

Place both your tasks on the blog under the heading Task 1 The impact of e-commerce