Alternative income resourceNovember 15, 2017
Relatively low starting and running costs – setting up an online market is better than opening up and actual store because it means you wont have to open a store, hire staff and paying utility costs, this Is a huge benefit for the seller as It means that most of the sales money will go Into purchasing new stock and the rest Is profit, as the seller doesn’t have to pay for anything else, but as they get more popular they might have to get a bigger warehouse. Competitive edge – this is good if the other business that sells the same thing as you, only has a store, because the online market can reach a bigger market than the traditional store, therefore you make more profit and sales than them because they have to pay for the electric and utility bills, renting the work space, paying staff wages. Search facilities – most sites that are into online trading now have a search facility that allows the consumer to search for the product that they want, the benefit of this is that It makes it easier and quicker so it Is less time consuming than going into the store and searching for the product. ND online stores when it comes to selling products, because in a traditional store hey are going to sell the product a lot more expensive than the online store because the high street stores have to pay for the renting space, the bills and employing staff, but on the online stores there isn’t anything to pay for so they can do discounts and sales more often because they are not spending any money on renting space and staff. Gathering information – gathering customer information is the foundation for all business online and on the high street, as learning about customer information helps a business increase profit, in a normal high street market a way of getting this information is by loyalty cards because you can track what the customer is ordering and you can make the service suit the customers needs. When online a customer needs to register with the service such as eBay, and when they do regular searches on a eBay for a Phone as, the next time they log on the suggested search will be there and it will be Phone or anything relating to phones.
Alternative income resource – this is basically another way for a business to make money other than selling products on their site and a way of doing this is , this will navigate the consumer to another site but each click hat the business gets from your site you will get some income for advertising their site on your site. Drawbacks Consumer trust – this is a big problem for online shoppers because some customers because every customer has a different mind set when it comes to online shopping, because some customers would be worried about their personal details being stolen and identity theft, the trust between the customer and the company is vital because if the trader breaks that trust the customer is going to tell other people not to use their site and word is going to get around that they steal bank details and commit fraud.
Lack of human contact – due to the fact that e commerce is all online, many people would think that e commerce is a disadvantage because there is no human contact and the customers would rather see the person they are buying a product off, because they can’t see the product until it is delivered to them and they may not like the product so it would be better for a traditional store. Delivery issues – when going to a high street market customers can order and take the product away with them, this makes it faster than the online method because when you are using an online market it will take up to 5 working days before the reduce has been delivered to you legislation and the laws of the country, when it comes to legislation for e commerce it is difficult for different countries because in the I-J you have to be 18 to buy and drink alcohol, but in another country such as the United States you have to be 21 to buy and drink alcohol, so you don’t know which law to follow.
Security issues – when it comes to security it is one of the biggest worries for the consumers because they don’t know whether they are safe buying over the internet because they’re is always a risk that you are buying from an illegitimate trader, this is worry because you may become a victim of identity theft. Conclusion In conclusion I would say that the benefits and drawbacks do have an impact on the E-commerce business because each aspect has a separate impact on how the E- Commerce business for example the 2417 trading has a positive impact on the business because it allows the business to always run so there is no closing time, there are also the drawbacks these have a negative impact on the business for example consumer trust because some customers dislike buying online because they don’t trust some sites.