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The potential of e-commerce

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E-commerce Britain is turning into a dot.com nation. By 2001 over 10 million homes had access to the Internet compared with 6 million the year before. Also, many people access the Internet through cyber caf�s and schools, colleges and universities. In recent years, more and more people (specifically the young) have turned to e commerce. Retailers simply cannot afford to ignore these developments. However, not all retailers are equally well placed to take advantage of this changing environment for trade. Recent events have demonstrated that selling via the Internet is not a guaranteed success for all companies. Some Internet ventures have collapsed even though billions of pounds were spent on trying to build the brands. These examples include: * Boo.com, an on-line fashion and sports clothes retailer, which failed despite having �12million ploughed into creating awareness of it. * Webvan, which soaked up �700 million in an attempt to create a large-scale retailing chain in the USA. Webvan had to file for bankruptcy. Other companies are 'hanging in there', but have yet to make a profit. They struggle largely because they required an existing brand presence and needed to create one. ...read more.


It is clear that e-commerce is a fast growing market, but it is expected that the most important area of growth will not be the consumer buying over the Internet, but in the area of business-to-business transactions. (B2B) The business to business market may not have the same issues relating to trust, as businesses are likely to look to form on-going relationships, and there are already traditional means of making electronic payments. A likely situation is that important customers will want to be able to order their goods online, check stock availability, prices and delivery times and be certain that the order will be delivered as expected. The UK has experienced strong growth in Internet take-up recent years and is now one of the world's most 'connected' economies. In 1998, less than 10% of UK households had Internet access. Now, that figure stands at nearly 40%. Virtually all schools are now 'wired up' and almost 95% of businesses are online. In total, 56% of the UK adult population - some 25.6m people - have now used the Internet. Help available in the UK There is a large amount of help available to the UK to develop e-commerce. ...read more.


I have found these reasons for not using e commerce are very common and all companies must ensure they improve on these. All these barriers can be categorised into either internal barriers or external barriers. The internal barriers are barriers that are inside the company such as training staff to know how to use the Internet and how to purchase goods, when a company decides to set up a website they will have to train their staff, so the staff have the relevant knowledge and training to manage the web site and run it correctly. This costs the business time and money, which sometimes they cannot afford to do. Another internal barrier is that many people and offices do not have equipment available to them to use for Internet shopping. The external barriers to e-commerce are outside influences of the business. These are factors such as ensuring customers and businesses that their credit card and financial details are secure, and reassuring the customers of the potential benefits. Graph 2 shows that security is the biggest problem why people do not pay for goods on the Internet. Another big problem is that some suppliers do not offer online payments. Companies must achieve this and then more people will be willing to buy. ...read more.

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Response to the question

The report is very in-depth and shows good understanding of eCommerce. However the report doesn't contain any real case study, which would back-up the student's research. The report mentions how users access the internet. One recent development, is the use ...

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Response to the question

The report is very in-depth and shows good understanding of eCommerce. However the report doesn't contain any real case study, which would back-up the student's research. The report mentions how users access the internet. One recent development, is the use of Smart Phones, as around 25% of all people within the UK own a Smart Phone and access the internet regularly. This is not mentioned within the report, which is worrying as this is a major development in technology. On the flip side, the report does mention how business's can use eCommerce to improve their operation. The report gives a very detailed and in-depth part on the suppliers side of the use of eCommerce websites.

Level of analysis

The report highlights a number of benefits of using the internet for purchasing products/services on-line, and the report also states how consumer's may not trust the internet for some purchases. The report clearly shows the positives and negatives of eCommerce and the student has made a conclusion from the background research.

Quality of writing

The report is quite formal, and is structured in an organised view and allows a user to read with ease. More importantly, the report allows a person to understand the points the student is making. The report does have a limited number of key terms, such as 'B2B'. Although the student does explain what this term means and has described this in-detail.

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Reviewed by danielbeal 18/02/2012

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