3.3.5 TECH & THE MIX>

--E-COMMERCE--

--DEFINITION--

E-COMMERCE refers to the buying and selling of goods and services 'OVER THE INTERNET'. It includes activities such as online shopping, online payments, digital marketing, and internet-based customer service.

--OPPORTUNITIES--

--...for BUSINESS--

CHEAPER PROMOTION as the firm's own website as well as marketplaces such as Amazon promote products to a global audience at much lower costs than if the firm opened physical shops or paid for billboards.
EFFICIENT ORDERING as all orders can be processed and sent directly to warehouses.
INCREASED SALES as attractive and easy to navigate website as well as product suggestions can lead to more purchases.
B2B TRANSACTION allows businesses to easily buy from other businesses online.

--...for CONSUMERS--

CONVENIENCE as shopping can be done from home.
EASY PRICE COMPARISON as consumers can compare products across other websites. There are also many comparison sites (see below) this means the consumer is able to make a more 'informed decision = less risk)
SIMPLE PAYMENTS as paying online with cards is quick and easy.
ACCESS TO GLOBAL PRODUCTS as now consumers can buy from international sellers.
LOWER PRICES as online competition can lead to cheaper prices for some goods, who now must compete on price.

--TASK--

Imagine you are the owner of a small clothes shop selling your own designs. You are pondering the possibility of selling your products online via your own website. Apply 3 of the above OPPORTUNITIES to the business & 3 OPPORTUNITIES to the customer that may result from this decision. REMEMBER TO APPLY.

--THREATS--

--...for BUSINESS--

HIGH COMPETITION as it is very easy for consumers to switch to cheaper competitors.
COSTLY WEBSITE DESIGN, HOSTING & MAINTAINANCE as websites must be attractive, updated, and user-friendly, which adds expense.
HIGHER DELIVERY COSTS as you will now individual items can be more expensive than shop sales.
NO FACE-TO-FACE CONTACT with the customer so it is harder to get customer feedback for market research.
Return Costs – Consumers can reject products easily, increasing costs for businesses.
Need for Warehousing – Fewer shops may be needed, but efficient warehouses and stock control are vital.
Not Suitable for All Products – Personal services (e.g., hairdressing) don’t work well with e-commerce.

--...for CONSUMERS--

INTERNET ACCESSIBILITY IS REQUIRED which means those customers without it, maybe in lower-income regions, can't access online services.
SYSTEM FAILURES can occur such as slow internet lines or crashed which can block purchases.
NO PRODUCT INTERACTION as Items can’t be touched or tried on before buying, and returns can be inconvenient, putting off potential customers.
NO DIRECT CONTACT WITH SALES STAFF, so consumers can’t ask questions easily like they could in stores.
SECURITY RISKS are always a possibility and there have been many incidents of fraud, identity theft, and the hacking of customer data including credit card details.

Imagine you are the owner of a small clothes shop selling your own designs. You are pondering the possibility of selling your products online via your own website. Apply 3 of the above THREATS to the business & 3 THREATS to the customer that may result from this decision. REMEMBER TO APPLY.

--SOCIAL MEDIA & PROMOTION--

⚠️Can alienate customers if they find the adverts annoying.
⚠️Have to pay for advertising if using pop-ups.
⚠️Lack of convo! of advertising if used by others.
⚠️May be altered or used in a bad way and forwarded on to other users giving the business bad publicity. Sell below 🤣