What is E-Commerce?
E-Commerce is the performing of transactions online, such as
shopping on the internet to buy Food and clothing. There are many different
retail shops and more commonly now food supermarkets that offer an online
service, they deliver the item you buy online to your door.
Brick and Click:
Many shops that started on the high street have now migrated to the online market, such as Sainsbury’s who have been opened on the high street since 1869 and began their online service in 1996. This helped them to reach more people and to earn more profit. As they now offer a mobile supermarket which allows people to order their food online and for it to be delivered to them instead of them having to go to the store. However for some companies this may cause a problem as their high street stores become less profitable than their online stores.Purely Online:
However for a company like Amazon they have only ever been
online providing a
fast, reliable and direct service. They have warehouses across
the world that store all the merchandise that they offer online, people work
around the clock to find and package the items people click to buy online. Amazon
have no plans to have any high street stores as their merchandise comes from
lots of different sellers, they also have no need to go on the high street as
their online store makes them a lot of profit. Amazon began as purely a book
seller, but they grew so big that they decided to expand their range of
products, offering small businesses to sell their merchandise on Amazon. Amazon
deliver worldwide, their delivery system is central to their online sales.
Click and Collect:
Most stores now offer a click and collect system, which
allows the customers to order an item in the store or online and collect in the
store in from 3-6 days later. This is convenient for the customer and means
more money for the stores as when they do not have the product in the store but
they are still able to offer the product to the customer.
E-bay:
E- bay has also made a huge online presence, allowing the
online user to be the seller. E-bay is a huge auction based website where
customers are able to bid on products they like, it also allows people to sell
their own unwanted goods or for small businesses to sell their goods. E-bay
itself is not in control of the buying and selling of products, so the feedback
that customers provide only effects the seller, not eBay.
E-bay is different to
Amazon in many ways; firstly all of the delivery of the sold goods is down to
the person selling the goods, not E-bay. So if the product does not come on
time or is not in a good condition it is not E-bay that will be blamed for this
but the seller or Courier/Post Office. E-bay also does not have fixed prices,
it is all due to bidding, and people are more attracted to the idea of bidding
than to a fixed price.
E-bay also use the paying system of Paypal which is a secure
way of spending your money as only Paypal know the details of the seller and
the buyer but they will never know each other’s. The information all goes
through your bank and Paypal isolate your information.
Future for E-Commerce:
Many high street shops have begun to struggle without having
online delivery services, such as Morrisons who began to fall behind its
competitors on sales in the food supermarket business. It has recently launched
its online delivery service to the public, widening its range of customers and
sales. E-Commerce is becoming increasingly popular for company's as it is an easy way to be linked tpo world wide customers in a fast and efficient way 24 hours a day.
Advantages and Disadvantages:
For the:
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Advantages of E-commerce
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Disadvantages of E-Commerce
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Business
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They still need to care for people who are working for their online
team and may need to expand their workforce if their online business gets
bigger. The turn over may be very high but it all can be lost very quickly
due to back feedback or someone’s bad experience.
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Customer
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It Is very quick and easy to use; you can buy nearly anything online.
You do not have to travel to a store or use any money in petrol. Also the
return system is very easy online.
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If you are buying a piece of
clothing you are not able to try it on. You could be scammed by an online
seller. It requires you to have a card or PayPal account.
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Employees
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People would have to be higher qualified benefiting everyone.
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Lots of people would lose out on their jobs, shop assistant and shop managers
would not be needed.
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Suppliers
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Suppliers earn more money and do not need an outlet.
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They need more workers to deal with the orders and to keep up with
packaging and delivering.
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