Benefits of E-Commerce

EP M6 E-Commerce

Today we will have a look at the benefits for businesses that use E-Commerce against traditional methods.

There are benefits both for the business, the customer and society.

We will also look at some of the disadvantages and problems for businesses that choose to operate E-Commerce.

E-Commerce

Can you think of any benefits for a company that wants to sell their products or services on the Internet?

E-Commerce

1. The business can operate on a GLOBAL scale.

◦ The internet is global. There are no distance barriers.

2. E-Commerce will save the company money.◦ The cost of operating online can be cheaper

than having a shop, office. You can automate sales, meaning a reduction in staff. Advertising is cheaper. Any saving can be passed on to the customer.

3. The business has no time barriers.◦ An online business is available for customers 24

hours a day. The internet never sleeps.

Benefits of E-Commerce

4. The customer has greater power.◦ Better buyer decisions, more choice.◦ Quicker and cheaper to shop on the net.

5. Ideal for niche products.◦ A niche product is a product with very few

customers. The internet is a vast marketplace, and can generate volume.

6. Environmental Benefits.◦ The customer stays at home and orders goods

from the net. Goods can be delivered directly from the warehouse. Staff can work from home.

Benefits of E-Commerce

Data Security. ◦ Some people do not trust the internet.◦ Credit card details can be stolen on the net,

unless the E-Commerce company is secure.

Data Privacy.◦ Many customers worry about sending information

on the net.◦ Identity theft.

Disadvantages of E-Commerce

Some products do not sell well over the net.◦ You cannot see, touch, smell or try on items you

purchase from the net.

Some customers like to shop in the high street.◦ Colours and shapes look different in pictures.◦ On the net people do not get to see which item

they are buying.

Disadvantages of E-Commerce

First Task Today◦ Come up with a list of 5 items that would be easy

to sell on the net. For each item, tell me why they would sell well.

◦ Come up with a list of 5 items that would not sell well over the internet. For each item tell me why they would not sell well.

◦ Add these 10 items to the discussion forum for this lesson.

◦ You can work in pairs.

You have 15 minutes.

E-Commerce

Somtam would not sell very well on the internet because people like to eat it at a restaurant with friends and be able to smell the food before they

order. The food may not arrive fresh.

Som tam

Second Task Today

◦ A local company is thinking about using E-Commerce.◦ Your job is to tell them why they should use E-

Commerce.

◦ What are the benefits of E-Commerce for their company.

◦ What will happen if they don’t set up an E-Commerce business?

◦ Create a PowerPoint Presentation with your information.

◦ Use examples from the Internet.

E-Commerce

The company◦ Currently has no website.◦ Is not computer literate, keep it simple.◦ Is ambitious, wants to compete with larger

companies.◦ Sells the latest model mobile phones and various

electronic items.◦ Currently operates in Phuket.◦ Has 3 shops in Phuket and employs many staff.◦ Doesn’t really trust the internet.◦ Wants to increase profit, and cut costs.

E-Commerce

Add your completed presentation to the website before next lesson. This will count towards your mid-term mark.

Remember, you want to convince them to use E-Commerce, so sell the advantages with confidence!

Don’t forget to include the name and numbers of your group members.

E-Commerce