ecommerce, p2

1. Unit 8 e-Commerce
P2 – The impact of introducing an
e-commerce system to an
organisation

2. 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.

3. 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?

4. 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?

5. 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?

6. 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?

7. 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.

8. 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.

9. 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?

10. 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

11. 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

12. 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

13. 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