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E-Commerce
E
-commerce has revolutionized the way in which people and organizations
buy and sell products. Trading on a local and global basis for a diverse range of
products and services is possible at the touch of a button.
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E-commerce has no geographical or cultural boundaries as it can be utilized through
the Internet, intranet, extranet or a combination of these systems. Products can be
shipped over continents and payment can be instantaneous without the need for
local currencies or foreign exchange rates.
This chapter will investigate the benefits and drawbacks for society of e-commerce
and the technologies involved. In addition, a range of security issues will be explored
from both a user and a business perspective.
This chapter will also provide information to cover a range of learning outcomes:
107
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108 BTEC National for IT Practitioners: Business Units
Social implication
E-commerce has impacted on a range of social areas and interests.
Customer perspectives have changed with the growth of online
shopping, banking and entertainment options. Customer attitudes have
been influenced by the way in which e-commerce provides value-added
services that are easy to use with vast savings on high-street provisions
and minimal delivery inconveniences. Even issues over security do
not seem so major when balanced against the many benefits that
e-commerce has to offer.
In terms of the impact on business and society, e-commerce has opened
up new doorways and opportunities that never existed under the
traditional commerce framework.
Businesses are now able to offer a more holistic package to consumers that
integrates elements of marketing, using a website presence as the vehicle
for promoting products and services, sales and distribution. Almost any
business can now set up a website, and advertise and sell products and
services to the public, and depending on the size and complexity of the
provision the setup costs could be reasonably small. The increase in online
businesses has opened up a much wider portal for society in terms of more
competitive pricing, more choice and greater flexibility.
CHAPTER 5
‘bricks and clicks’ approach of integrating high-street presence with an
online provision has proven to be very successful for a large number of
retailers and service providers. One of the downsides of e-commerce,
however, is that because of the competitive arena, some businesses
that do have a high-street presence have suffered because they cannot
compete with online pricing, choice and services.
● Tesco
● Boots
Try to find at least two products that are offered by three of the
organizations and check to see how competitive they are in terms of
pricing and delivery options.
2. If you were going to buy one of these products, which organization would
you choose and why?
Benefits
E-commerce has provided many opportunities for both consumers and
organizations, including:
● the generation of a global marketplace with no geographical
boundaries
● a 24/7 marketplace
● relatively low startup and running costs
● Providing a competitive edge by having an online provision
● the ability to search for countless options across the globe from the
comfort of your own environment
● access to more competitive pricing, special offers, discounts and
promotions
● the ability for organizations to track and capture customer data that
can then be used for target marketing approaches
● for many, e-commerce provides an additional source of income,
especially with the demand in online auction sites and the promotion
of e-markets and e-traders.
With the support of an excellent infrastructure, the Internet and
e-commerce have grown into an interactive shopping, entertainment,
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