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E-Commerce

E-Commerce. Social implications. E-Commerce has several impacts on business, including the need to change business practices and operations so as to take advantage of the benefits of e-commerce. Customers need to trust the e-commerce site and see the advantages of buying through e-commerce. .

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E-Commerce

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  1. E-Commerce Social implications

  2. E-Commerce has several impacts on business, including the need to change business practices and operations so as to take advantage of the benefits of e-commerce. • Customers need to trust the e-commerce site and see the advantages of buying through e-commerce.

  3. Changing customer perspective • Scare stories in the media warn potential customers about identity theft, items not being delivered and other reasons not to trust buying online. • One of the biggest hurdles that e-commerce business have to overcome is to prove that they can be trusted.

  4. Value: not just offering lower prices than high street stores, but also products that are not available elsewhere. • Service: the majority of websites offer a 24 hour delivery time for a small additional cost. • Ease: open 24/7 and accessible from home, e-commerce is relatively effortless for the customer who may find it easier to locate products using a websites search facility rather than searching in a physical store.

  5. Security: probably the biggest barrier affecting customer perception. There are a number of ways to protect customers and websites should ensure that they adopt these to reassure their customers.

  6. Business and society • Communication is easier and contact can be made to anywhere in the world in seconds. By trading online, businesses open themselves up to the global marketplace. • Previously, it may have taken months, even years to break into foreign or niche markets, however e-commerce has allowed instant penetration into all marketplaces.

  7. Challenges • Traditional booksellers are facing huge competition from online booksellers such as Amazon. As pure e-commerce businesses can offer the same products as traditional stores at lower prices, as well as offering other benefits, traditional stores must change their methods of business and advertising to remain competitive and profitable.

  8. Internet access. • Another issue is that of internet access. Users who do not have access to broadband (56K) e-commerce is not always an effective alternative to traditional shopping. • In addition families on low incomes may not be able to afford to buy a computer or pay a monthly subscription for internet access, meaning they cannot benefit from the lower prices of e-commerce.

  9. Employment issues • As more businesses begin to trade online, there is an effect on employment opportunities. As traditional stores close, workers cannot gain employment in a similar field. E-commerce favours those with IT skills. • Additionally, as e-commerce businesses can be run from small locations, shop rent prices may fall due to fewer businesses buying or renting store premises or warehousing. • All this has a significant effect on society.

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