1. BTEC ICT Level 3 Unit 8 E-Commerce

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

3. 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?

4. 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.

5. 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.

6. 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.

7. 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!

8. 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.

9. 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?

10. BTEC ICT Level 3 Unit 8 E-Commerce

11. Session 4 – Impact of E-Commerce (Drawbacks)

12. 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?

13. 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.

14. 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.

15. 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.

16. 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?