Today we will have a look at the benefits for
businesses that use E-Commerce against
There are benefits both for the business, the
customer and society.
We will also look at some of the
disadvantages and problems for businesses
that choose to operate E-Commerce.
Can you think of any benefits for a company
that wants to sell their products or services
on the Internet?
1. The business can operate on a GLOBAL
◦ The internet is global. There are no distance
2. E-Commerce will save the company money.
◦ The cost of operating online can be cheaper than
having a shop, office. You can automate sales,
meaning a reduction in staff. Advertising is
cheaper. Any saving can be passed on to the
3. The business has no time barriers.
◦ An online business is available for customers 24
hours a day. The internet never sleeps.
4. The customer has greater power.
◦ Better buyer decisions, more choice.
◦ Quicker and cheaper to shop on the net.
5. Ideal for niche products.
◦ A niche product is a product with very few
customers. The internet is a vast marketplace,
and can generate volume.
6. Environmental Benefits.
◦ The customer stays at home and orders goods
from the net. Goods can be delivered directly
from the warehouse. Staff can work from home.
◦ Some people do not trust the internet.
◦ Credit card details can be stolen on the net, unless
the E-Commerce company is secure.
◦ Many customers worry about sending information
on the net.
◦ Identity theft.
Some products do not sell well over the net.
◦ You cannot see, touch, smell or try on items you
purchase from the net.
Some customers like to shop in the high
◦ Colours and shapes look different in pictures.
◦ On the net people do not get to see which item they
First Task Today
◦ Come up with a list of 5 items that would be easy to
sell on the net. For each item, tell me why they
would sell well.
◦ Come up with a list of 5 items that would not sell
well over the internet. For each item tell me why
they would not sell well.
◦ Add these 10 items to the discussion forum for this
◦ You can work in pairs.
You have 15 minutes.
Somtam would not sell very well on the internet
because people like to eat it at a restaurant with
friends and be able to smell the food before they
order. The food may not arrive fresh.
Second Task Today
◦ A local company is thinking about using E-Commerce.
◦ Your job is to tell them why they should use E-
◦ What are the benefits of E-Commerce for their
◦ What will happen if they don’t set up an E-Commerce
◦ Create a PowerPoint Presentation with your information.
◦ Use examples from the Internet.
◦ Currently has no website.
◦ Is not computer literate, keep it simple.
◦ Is ambitious, wants to compete with larger
◦ Sells the latest model mobile phones and various
◦ Currently operates in Phuket.
◦ Has 3 shops in Phuket and employs many staff.
◦ Doesn’t really trust the internet.
◦ Wants to increase profit, and cut costs.
Add your completed presentation to the
website before next lesson. This will count
towards your mid-term mark.
Remember, you want to convince them to use
E-Commerce, so sell the advantages with
Don’t forget to include the name and
numbers of your group members.