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Explain the postives of introducing an e-commerce system to an organisation

Extracts from this document...

Introduction

Transfer-Encoding: chunked Amazon sell worldwide which means they can sell products to more people and have an advantage over companies that do not sell across the world. This means that customers have the chance to purchase products from all over the world in the comfort of their homes. E-commerce makes this possible as the store can be accessed anywhere in the world with internet access. This beats traditional stores because only the people who are in the area of the store can go in and buy products, not everyone in the world like e-commerce can do. Amazon allow 27/7 trading which means that a customer can log on whenever they wish and buy products. Customers are more likely to do this as it?s easier and more convenient for them. Trading can be carried out day or night and unlike some businesses, there is no closing time. Because websites can be automated, there doesn?t need to be any staff like there is in highstreets stores. ...read more.

Middle

This will make them more competitive as they can provide discounts better than their competitors, gaining many customers due to the good deals. Amazon have good search facilities which allow the customer to search for what they specifically want; they also have filter options which allow the customer filter for the cheapest product first or the closest item to them or even brands and colours which means it?s easier for them to find the exact product they need. E-commerce stores allow products to be found in just seconds with their special search facilities. This benefits the customer by allowing them timely retrieval of information. Online stores can have searching facilities that can reduce the amount of items shown so that the items that are shown are what the customer wants. For instance, allowing to pick a category such as beauty or film and games. This cannot be done in traditional stores because you have to search the whole store. ...read more.

Conclusion

Online stores can also set up algorithms which help to determine the optimum price to make an overall profit. In addition, they can have a function which compares prices between their store and other competitive stores and can then change their prices accordingly. Traditional stores cannot do this. Amazon make use of fluid pricing by looking at trends of popular items and then setting prices slightly higher because they know they will sell the item meaning a larger profit for them. If they see that there are certain items that they cannot sell as well, they can reduce the price which will make customers want to buy the items. Fluid pricing means that shops can put stock that is in high demand at a higher price and stock that is in less demand at a lower price so that customers will buy all the items. Fluid pricing means that they will be making more money either way as if they become popular the prices will rise. This allows all product to be sold. ...read more.

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