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. Can you think of any benefits for a company
that wants to sell their products or services
on the Internet?
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. 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. 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. 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. 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. 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. 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. 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. 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.