E-commerce Unit 2

top 10 e-commerce websites used in the UK 1. Amazon.co.uk 2. Argos 3. Play.com 4. Apple.com 5. Amazon.com 6. Tesco 7. Marks And Spencers 8. John Lewis 9. Next 10. Easyjet 2010 - www.blue-shark.co.uk

Objective & Success Criteria Learning objective… To understand e-commerce and its benefits and limitations   Success criteria… I can describe the process the customer would of through to buy a product from a website. I can identify 4 benefits or limitations of e-commerce I can explain the weaknesses of the current system at BoW (linked to pre-realised exam task) CHALLENGE: I can evaluate future improvements at BoW regarding their website - (linked to pre-realised exam task)

Exam question (Jan 2010 – Q7) A company designs and manufactures a unique range of children’s wooden toys. The company has a website with an on-line catalogue and uses e-commerce to sell the toys directly to the public.   A customer accesses the on-line catalogue. Describe the process the customer would of through to buy toys from the company. _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ ______________________________________________________________________ [4]

Answer 4 mark question asking to describe so make 4 points A company designs and manufactures a unique range of children’s wooden toys. The company has a website with an on-line catalogue and uses e-commerce to sell the toys directly to the public. A customer accesses the on-line catalogue. Describe the process the customer would of through to buy toys from the company. Answer (Jan 2010 – Q7) 4 mark question asking to describe so make 4 points

What is E-commerce? E-commerce is short for ‘electronic commerce’ It means buying and selling goods electronically using the Internet. Using E-commerce gives businesses access to customers all over the world. This is known as ‘The global market’ which is reached by means of a website.

Think of examples of websites you or your family frequently use to make purchases.

Divide into four groups and each group take one of the following to research 10 minutes What do you think are the ADVANTAGES for customers of using e-commerce? Dan K, Dom & Dan P What do you think are the DISADVANTAGES for customers of using e-commerce? Nicola, Tom & Ali What do you think are the ADVANTAGES for businesses of using e-commerce? Kieran, Calum & Jamie CHALLENGE: Which ICT legislation applies to e-commerce? What do you think are the DISADVANTAGES for businesses of using e-commerce? James, Sanjay & Sam

Advantages of e-commerce for customers Dan K, Dom & Dan P Customers have a huge range of goods to choose from. They can ‘shop around’ the ‘web’ for the best bargain – compare. Internet prices are often lower than in shops. Customers can shop from the comfort of their own home ’24/7’.

Disadvantages of e-commerce for customers Nicola, Tom & Ali Customers need to own or have access to a computer and be on-line and know how to use the Internet. It is not easy to assess the quality and suitability of many products on the screen because customers can only see a picture. Inconvenience of returning unwanted goods. Customers usually have to have a credit/debit card to make Internet purchases. Security risks of buying on-line.

Advantages of e-commerce for a business Kieran, Calum & Jamie Access to the global market means the business will be better known (increase customer base) and can sell to a wider geographical area. Payment guaranteed at the time of order as credit/debit card details are provided. Savings on expensive showrooms/premises, reducing overheads. Reduced advertising costs – websites are easier to keep up to date as paper catalogues need to be reprinted. Business is open 24/7, increased sales, leading to increased profit.

Disadvantages of e-commerce for a business James, Sanjay & Sam Being part of the global market means the business is in competition with everyone! Designing and keeping the website up-to-date is expensive. Additional costs of technical support are required to maintain a secure web server. Packing and distribution of products can be very costly and involve long distances. The company may have to pay for return of goods if goods do not meet customers expectations. Concerns over security of card details may deter customers from buying online. Not all the businesses target customers have access to the internet.

Best of wood (BoW) Challenge 10 minutes Best of wood (BoW) Challenge Page 8 of the case study “The company website currently show pictures of different pieces of furniture that the company has made, provides information about the types of wood and finishes available and explains the process of placing an order, including the Sales and Marketing Manager’s phone number and email address. The Sales and Marketing Manager would like to make greater use of the website but is concerned that e-commerce might not be appropriate for a company like BoW.” What do you think? Explain the weaknesses of the current website and explain and evaluate whether BoW would benefit from moving to e-commerce or not. As a customer what are the drawbacks to BoW’s website? Would e-commerce be successful for a company such as BoW, who also manufacture bespoke furniture? Why might it not be appropriate? What should BoW consider? – Look the advantages and disadvantages of e-commerce. Conclude your findings and make a recommendation. Look at these websites… sharps.co.uk diy.com ikea.com

Exam Question (Jan 2010 – Q7) A company designs and manufactures a unique range of children’s wooden toys. The company has a website with an on-line catalogue and uses e-commerce to sell the toys directly to the public. Explain the benefits and limitations to the company of using e-commerce to sell their toys. ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ __________________________________________________________________[6]

answer A company designs and manufactures a unique range of children’s wooden toys. The company has a website with an on-line catalogue and uses e-commerce to sell the toys directly to the public. Explain the benefits and limitations to the company of using e-commerce to sell their toys. (Jan 2010 – Q7) 6 mark question asking to explain so make 6 points. 3 benefits & 3 limitations

Advantages of e-commerce for customers

Disadvantages of e-commerce for customer

Advantages of e-commerce for a business

Disadvantages of e-commerce for a business