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What is e-commerce used for?

Extracts from this document...

Introduction

E-commerce In this report I will be discussing the benefits and costs of starting up a website. The company I am designing the website for is a cosmetics company. The website is called Smoothannice.com. In this report I will discuss: * Benefits of starting up smoothannice.com * Costs of starting up smoothannice.com * The laws the website must abide by * Who the business can communicate to through the website * The barriers to e-commerce * Setting clear objectives for the website What is E-commerce? E-commerce is sometimes referred to as e-business. E-commerce is said to be buying and selling of goods over electronic networks, such as the Internet. This can be between businesses, business and customers, or between the public and private sector. The sale of a product can be transacted electronically; the ultimate delivery of the good or service may be conducted online or off-line. Broader definitions of e-commerce cover transactional e-commerce, but also include "process e-commerce" - which covers activities between businesses for intermediate goods and process information done by electronic means. Defined broadly - e-commerce describes how businesses are using information gathered electronically to improve their business processes and relationships with suppliers and consumers. This potentially covers all business areas, such as design, production, operations, customer service, as well as buying and selling. E-commerce can be used for communicating to customers or communicating with other businesses. What is e-commerce used for? E-commerce is being used a lot these days by people, and it is why so many companies have started up websites where the customers can purchase goods. Companies start up the websites so that they can do business with other businesses (B2B) and with customers (B2C) Business to Business When using e-commerce it is possible for businesses to communicate to each other. The other business could be a competitor, another chain store or a supplier. Some companies that sell their product to other companies are Apache and BT Internet. ...read more.

Middle

They can achieve this by offering customers a telephone number to pass their credit card number over instead of putting through the website. They would then have to reassure the customer that their product will arrive. It is essential for smoothannice.com to write how long it could take for the product to arrive e.g. they can write that it takes up to 7 working days for the product to arrive. This way it gives the company a chance to get the product to the customer. If the product as not arrived in seven days then the company will know that something is wrong and can offer the customer a discount in order to keep the companies good image. Making smoothannice.com a successful website In order to make smoothannice.com a successful website a lot of factors have to be taken into consideration. These factors will help smoothannice.com not become a failure like boo.com. Design the website for all of target audience The first factor that smoothannice.com has to think about is that does their website suit all internet connections. This means does the website run better on a 38.8kb connection or a 56kb connection. It should not run better on either. The website should run the same on any connection, if the website was to be slow on certain connection speeds then its very likely that some people will not come on the website. This is because if smoothannice.com takes so long to load up on their computer then they will go to another website which takes very little time to load up. So the first factor that smoothannice.com will have to consider is how they will make sure that the website loads up as fast as possible on any connection. The best way to make sure that the website loads up as fast as possible is to have not so many pictures, as these are the main reasons why loading up a website takes so long. ...read more.

Conclusion

The impact that the website will have on the companies suppliers is that it can give them more business opportunities as it is likely that smoothannice.com will have a lot of demand. Profits - as I have mentioned above due to the website the customer and sale level are both set to rise. These two factors will have a massive knock on effect to the profit. Also if the profit has increased due to a direct link with the website then this would mean that the website is a success. But there is a reverse effect. If the website is not of a good quality and is not a success this could mean that the profit level of the company will drop. Also if the website is a failure their will be no money made by the website to cover the costs of constructing and maintaining the website. Conclusion I would like to conclude at the end of this report that I think that the cosmetics company should launce the website. After measuring up the costs and benefits of launching the website I decided to go for the website as I believe the benefits are to strong for the costs. Although some companies have failed with their own websites as I believe if the website is to follow my plan then it can only be a success. I believe that the website will have a immediate success with the launch being so close to the Christmas season, so this will give it a great foundation to build on, and will not make the same mistakes as www.boo.com. Below are the outcomes that I believe will be a direct result from smoothannice.com: * Increase in profit * Have worldwide status * Increases in market share * Increase in share price * Increase in consumer levels * Increase in consumer loyalty So I think that it would be a great money maker if the company construct the website, and will blow away their competitors. HARMINDER BIRK BUSINESS E-COMMERCE 1 ...read more.

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