Explanation positive effects
1. Convenience : e-commerce is very convenient for customer ,because it accepts different type of credit and debit cards and as many other forms of payment as possible . customer don’t need to go anywhere for payment ,customer can carry as many items in stock as possible to avoid backorder ,it is often convenience because the order goes hand –in –hand with in timelines to customer. 2. Helpful for disables and aged people: as the disable and aged people are less able to walk and might be live alone , so by the e –commerce they don’t need walk to door to door of different shops in that search of things ,whatever they need that will come to there door within the timeline, within reasonable prices and if they don’t like the product they can return it back within the time period of product
3. Time saving : with e-commerce, consumer can save their time, because they can have access to their money through internet and work all from a desktop computer and save the time of going to so many different shops in search of thing they wanted ,they will get so much choices on e-commerce at sitting at there home, in that mean time they can do there different works .
4. Information availability : e-commerce enables consumers to make price comparison so that they can make more appropriate purchasing decisions .e-commerce make information of products and the market as whole which is easily accessible by customer to make more appropriate purchasing decisions
5. Helpful for new business: in the present situation of market, e-commerce stores have become the necessity of the people e-commerce website is exposed to the millions of people at a single click , so the chances are high that it is able to generate huge profit and to start a new business ,the business man only need to pay the registration fees of his business website , so it is clearly shows that the expenditure is very less and profit margin is very high 6. Jobs for society : e-commerce create delivery jobs for the general people for these jobs people don’t need to much educated and this not very hard work any worker can do that the delivery person also get tips s reward 7. 24 hour service: e-commerce site gives customer ability to have unlimited store hours, it gives customer it gives customer 24 hours a day ,7 days a week access to shop and buy items from online stores .the customers can make contact to the merchant or the seller anytime by email or by the fax. whole information about the product is available to the customer all the time on the website
8. Available niche products : on the e-commerce market there is wide range of products are available ,there are variety of products which come in different variants at varied prices, some products which are not available within the boundaries of one’s country on e-commerce one can do cross border shopping, they only have to pay the shipping cost extra
9. Disintermediation : e-commerce removes intermediaries in supply chain process, it gives customer simpler and more direct access to good and services which means lower prices because supply chains are streamlined and the fees charged by distributors and logistics providers are eliminated or sharply reduced 10. Environmental friendly : e-commerce is eco-friendly market because people do shopping on e-commerce through internet by sitting at home they don’t go to stores looking for things they need ,every information and product is available at internet 24 hours a day and 7 days at of week , by shopping through internet saves fuel and prevents air pollution
Explanation negative effects
1. Loss to the small business man : e-commerce makes direct link between the customer and seller or manufacturer ,which shows there is no need of middle so the job of middle man is vanished and it also effects the small business and retailing they loose customer because customer prefers to purchase directly through e-commerce from manufacturing at low rate prices 2. Increase in crime rate : e-commerce increases the computer crime which also known as cyber crime ,cyber crimes includes internet –related forgers ,embezzlement ,fraud ,vandalism and the disposal of stolen goods .the potential threat to the overall development of e-commerce is serious . according to FBI there was e –commerce fraud of 30 billion in 2004 in economy
3. Creates unemployment: on the e-commerce customers purchases directly from the stores the details information about the products is available on the site of the product so they don’t need to go manually to store and they don’t need any person to give them information or guide what is right for them , because of this feature of e –commerce employees who work at stores loss the jobs . 4. Wrong information : e-commerce is also known as electronic commerce which we do on internet ,internet is trap if you don’t have proper knowledge about it and the main motive of any business is to sell there product ,for that they may give wrong information on internet
P2.1- Analyse the impact, including the risks, of introducing an e-Commerce system to an organisation ANS E-COMMERCE : e-commerce is a way for any size of organisation to do business over internet, selling products or services , taking payment and providing customer support which have positive impacts on organisation and as well as have some risk to organisation and customer of organisation As we take the example of ASDA which is one of the four biggest supermarkets in the UK ,alongside tesco ,sainsbury’s ,morrisons .
IMPACTS OF E-COMMERCE ON ASDA
* Provides multichannel selling
* Accelerate business growth
* Empowered customer
* Reduce operating cost
* Increased profit rate
* Interactive help system
1. Interactive help system : The website of ASDA provides interactive help system that efficiently guides a new user to quickly get accustomed to the online shopping process , which attracts more customer. ASDA has classified its products efficiently based on the departments which enable the customer to view the products accurately , ASDA website also provides information of time to time offers on products by advertising on the sides of website which keep customers up to date
2. Multichannel selling : multichannel selling is the process which is used by ASDA to sell their products , in this process ASDA sell their products with in various online channels ,it can single website , public website , public marketplaces and shopping-comparison site and social websites , As on the e- bay which is the public market place have 23 million registered users, and the price grabber reported that they alone have more then 18 million unique visitors per month and social sites are popular all over the world , which brings customer from all over the world and increases sales at high rate as well as expand the brand recognition
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