Topic 4 Digital Trading Flashcards
What is digital trading
Digital trading/eCommerce refers to ordering, buying, selling and paying for products and services using the internet.
What are the advantages of digital trading to businesses?
Cost effective way of promoting the business to many customers, through search engine listings.
Provides access to a global market. Increased sales due to a larger market and the fact that people can trade digitally 24/7/365.
Website information can be updated quicker than business documents, such as catalogues.
Some businesses will not need a high street location or expensive showrooms, this is a major cost saving.
What is the other name for digital training?
eCommerce
What are the disadvantages of digital trading to businesses?
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. Security concerns can be a problem, especially when dealing with people’s money or personal details.
Increase the level of competition faced by the business
What are the advantages of digital trading to customers?
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 – 24/7/365.
Have their products delivered without the inconvenience of visiting a shop.
Can access important information, eg price comparison, online reviews
What are the disadvantages of digital trading to customers?
There will be a time delay between ordering the item and the delivery of it, this can also be expensive.
Not all customers may have access to a computer or the Internet, or indeed have the necessary skills to navigate it.
In-secure websites credit card or personal details could be intercepted.
Reliance on technology functioning properly.
Products may appear different on the website, meaning goods will have to be returned and postage costs paid
