Lesson 2 - Benefits of E-Commerce


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E-Commerce - Lesson 2
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Lesson 2 - Benefits of E-Commerce

  1. 1. EP M6 E-Commerce
  2. 2.  Today we will have a look at the benefits for businesses that use E-Commerce against traditional methods.  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.
  3. 3.  Can you think of any benefits for a company that wants to sell their products or services on the Internet?
  4. 4. 1. The business can operate on a GLOBAL scale. ◦ The internet is global. There are no distance barriers. 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 customer. 3. The business has no time barriers. ◦ An online business is available for customers 24 hours a day. The internet never sleeps.
  5. 5. 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.
  6. 6.  Data Security. ◦ Some people do not trust the internet. ◦ Credit card details can be stolen on the net, unless the E-Commerce company is secure.  Data Privacy. ◦ Many customers worry about sending information on the net. ◦ Identity theft.
  7. 7.  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 street. ◦ Colours and shapes look different in pictures. ◦ On the net people do not get to see which item they are buying.
  8. 8.  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 lesson. ◦ You can work in pairs.  You have 15 minutes.
  9. 9. 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.
  10. 10.  Second Task Today ◦ A local company is thinking about using E-Commerce. ◦ Your job is to tell them why they should use E- Commerce. ◦ What are the benefits of E-Commerce for their company. ◦ What will happen if they don’t set up an E-Commerce business? ◦ Create a PowerPoint Presentation with your information. ◦ Use examples from the Internet.
  11. 11.  The company ◦ Currently has no website. ◦ Is not computer literate, keep it simple. ◦ Is ambitious, wants to compete with larger companies. ◦ Sells the latest model mobile phones and various electronic items. ◦ 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.
  12. 12.  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 confidence!  Don’t forget to include the name and numbers of your group members.