BTEC ICT Level 3 Unit 8 E-Commerce

Session 3 – Impact of E-Commerce on Organisations (Benefits)

2.0 Impact of E-Commerce on Organisations Starter Questions: Working with a partner: List as many reasons as you can think of as to why a business will set itself up to use e-commerce? List 4 advantages of using e-commerce? Why would a business choose NOT to e-commerce?

Unit 8 Learning Aims After completing this unit you should: Know the technologies required for an e-commerce system Understand the impact of e-commerce on organisations Understand the effects of e-commerce on society Be able to plan e-commerce strategies.

2.1. Benefits of E-Commerce They include: Global Marketplace - e-commerce allows a business to have access to consumers around the world. You can buy from the comfort of your own home. 24/7 Trading – businesses are able to trade anytime (night and day) as there isn't a store to be staffed.

2.1. Benefits of E-Commerce They include: Low Start and Up and Running Costs – to set up a physical store involves buying/renting a location, stock and hiring staff which are all expensive! Competitive Edge – customers are given more flexibility about how, when and where they buy goods and services.

2.1. Benefits of E-Commerce They include: Search Facilities – most web pages and sites allow you to search for stock quickly and specifically without getting lost wondering around! Pricing Opportunities – cheaper online prices may be offered to encourage customers to use this method. Don't forget that it is cheaper for the business than running its physical store!

2.1. Benefits of E-Commerce They include: Gathering Customer Information – this is important to all businesses and can be done online through customer registrations. Alternative Income Sources – a business that has an e-commerce facility may be able to “sell” its pages as advertising space to other interested organisations creating extra income.

2.1 – Benefits? (Plenary) Identify and explain 2 Benefits of being in a Global Marketplace? Identify and explain 2 Benefits of 24/7 Trading? Identify and explain 2 Benefits of having a Competitive Edge? Identify and explain 2 Benefits of being able to Gather Customer Information?

BTEC ICT Level 3 Unit 8 E-Commerce

Session 4 – Impact of E-Commerce (Drawbacks)

2.0 Impact of E-Commerce on Organisations Starter Activity Working with a partner: List as many reasons as you can think of as to why a business will set itself up to use e-commerce? List any disadvantages of using e-commerce?

Unit 8 Learning Aims After completing this unit you should: Know the technologies required for an e-commerce system Understand the impact of e-commerce on organisations Understand the effects of e-commerce on society Be able to plan e-commerce strategies.

2.1. Drawbacks to E-Commerce They include: Consumer Trust/Security – are all websites safe, secure, honest, trustworthy?! Lack of Human Contact – customers may NOT want to buy online as they cant speak to anyone first. Delivery Issues – customers may NOT like having to wait for a delivery and prefer to take a good home immediately.

2.1. Drawbacks to E-Commerce They include: Internet Laws – when selling online a business has to follow the laws in its own country and also the one it is selling to. Product Description Problems – customers may not believe that a good/service described on a site might not match up with reality. to buy online as they cant speak to anyone first.

2.2 - Drawbacks Identify and explain 2 Disadvantages of NOT having Customer Trust? Identify and explain 2 Disadvantages of NOT having Human Contact? Identify and explain 2 Disadvantages of NOT following International Legislation? Identify and explain 2 Disadvantages of NOT following up Security Issues?