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AO3 - How e-commerce has affected the way people buy goods

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Introduction

´╗┐Types of E-Commerce 1. Electronic data interchange (EDI) between companies 2. Supermarkets 3. Banks 4. Specialist Retailers 5. Auction Sites 6. Organisations, clubs etc where e-commerce is not the primary function of the website 7. Price comparison websites E-commerce also known as electronic commerce consists of the buying and selling of products or services over electronic systems such as the internet and other computer networks. E-commerce consists of four main elements: 1. An online catalogue displaying goods for sale 2. A shopping cart system allowing users to pick the goods and place an order for them 3. A payment system that receives and encrypts credit card details for processing 4. An order processing and completion system by which orders are managed and goods delivered to the purchaser A large percentage of electronic commerce is conducted entirely electronically ...read more.

Middle

It reduces in staffing and/or high street stores thereby reducing costs 4. It provides the option to offer 24 hour shopping at minimum additional cost Disadvantages There are some disadvantages of e-commerce such as: 1. Stiffer competition - businesses once competing with the shop in the next town now find themselves competing on a global scale. 2. Staff reductions - with increased competition, local companies may have to reduce their work force. 3. Cost of restructuring - the move to e-commerce may not be a smooth one and will certainly require a degree of investment. 4. Customer concerns - if high street stores are closed in an effort to save money, customers who prefer to shop on the high street may not be comfortable buying online so may go elsewhere. ...read more.

Conclusion

With the variety of websites, people can easily order a specific product of their choice. Cost When selling products there are set-up and maintenance costs. Firstly, a domain needs to be registered which costs £5 to £20. Next is hosting of a site, which for the average e-commerce store of several hundred products, will cost around £100 a year. Flexibility E-commerce has allowed both retailers and customers to increase flexibility. For retailers it has allowed access to more customers without having to invest in a new store at a location first and also it has allowed them to have greater flexibility. For consumers it has allowed people to shop around for the best price and not suffer from the threat of overpriced goods at your local store. It also allows a consumer to remove the hassle of going to the shops. Unit 8: AO3 - How E-Commerce Has Affected The Way People Buy Goods ...read more.

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