Digital Trading

Question 1

Definition of digital trading/eCommerce

Answer 1

It refers to ordering, buying, selling and paying for products and services using the internet.

Question 2

Advantages of digital trading and business

Answer 2

Cost effective way of promoting the business to many customers
Provides access to global market
Increased sales due to larger market and the fact that people can trade digitally 24/7

Question 3

Disadvantages of digital trading and business

Answer 3

Adds additional legal and security issues
Costs associated with the design, maintenance and updating of the website
Technical difficulties can lead to a poor corporate image

Question 4

Advantages of digital trading and customers

Answer 4

May benefit from lower prices due to reduced costs placed on the business
Can shop from the comfort of their own homes
Can shop at a time convenient to them

Question 5

Disadvantages of digital business and customers

Answer 5

There will be a time delay between ordering the item and the delivery of it
Details on website may not be accurate e.g. stock levels/contact details
Not all customers have access to computers or the internet