2.4 Digital Trading

Question 1

What is Digital trading

Answer 1

Refers to ordering, buying, selling and paying for products and services using internet. Marketing of goods and services over internet
Can be with customers and other businesses

Question 2

Advantages of Digital Trading to a business

Answer 2

Effective website gives business professional image
Provides access to global market
Increases sales due to a larger market fact that people can trade digitally 24/7/ 365 days a year
Digital trading can lead to lower costs
Cost effective way of promotion
Don’t need a high street location

Question 3

Disadvantages of digital trading to a business

Answer 3

Costs associated with design, maintenance and updating of website
New staff with expertise in area may need to be appointed or existing staff retrained
Technical difficulties can lead to poor corporate image
Security fears for consumers
Adds additional legal and security issues

Question 4

Advantages of Digital Trading to Customers

Answer 4

Can shop from comfort of own homes
Can shop at a time convienet to them
Have products delivered without inconvience of visting shop
access important information about products
may get lower prices

Question 5

Disadvantages of Digital Trading to Customers

Answer 5

Details on website may be inaccurate
Not all customers may have access to computer or internet
orders placed can be difficult to change
Possibility of being defrauded
secure websites creddit cards, or personal details can be intercepted
Can be time delay on ordering item and delivery of it
Reliance on technology functioning properly