New Technology - E-commerce

Question 1

What is E-Commerce?

Answer 1

Selling products or services online

Question 2

What are the benefits of E-Commerce?

Answer 2

Can reduce costs & increase sales:

• Saves money on paper, brochures, product info can be viewed online
• Saves money on staff, Don’t require so many staff to give information over phone.
• Save money property, Don’t need high street shops, can send directly from warehouse
• Firms can be based in more remote areas, lower wage & rent / property costs
• All savings mean firms can offer lower prices
• Can reach international markets

Question 3

Talk about the international market possibilities

Answer 3

• Can target foreign countries using online marketing strategies
• Cheaper than advertising in foreign media
• May lead to higher profits

Question 4

What are Pro’s for the customer?

Answer 4

• Shop from anywhere anytime
• Search quickly through huge amounts of stock
• Easy to compare products and prices offered
• Encryption software means payment information is secure on many sites
• Often able to track progress of an order

Question 5

What are the Cons for the customer?

Answer 5

• Can be hard to tell if site belongs to a trustworthy firm
• Chance the payment details could be used illegally
• Products can’t be seen before or tried before buying
• Don’t have it straight away, Takes time to be delivered
• Can be difficult to exchange or return
• Spam marketing, direct e-mailers etc