e-commerce

• What is e-commerce?

  Buying or selling goods online
• How does increased use of e-commerce impact a business's marketing mix?

  It changes the place component of the mix
• What is likely to happen to physical outlets when using e-commerce?

  There will be less physical presence
• What is the effect of using fewer outlets on business costs?

  It leads to reduced costs
• Why will there be reduced costs when using e-commerce?

  No need for rent and overheads
• What is the likely effect on breakeven output when using e-commerce?

  It will be reduced
• How does increased e-commerce affect market reach?

  It increases reach beyond local areas
• How can weak exchange rates affect e-commerce sales abroad?

  It makes products cheaper for exports
• What are the financial implications of increased reach and sales through e-commerce?

  Reduced costs and increased profits
• What is a necessary investment for e-commerce?

  A website
• What types of costs are associated with maintaining a website?

  Initial and ongoing costs
• Why might profits from e-commerce outweigh website costs?

  Increased sales and reduced costs
• What is the trend for businesses regarding e-commerce?

  • Many businesses are moving towards e-commerce
  • Retailers are becoming e-tailers
• What is the impact of e-commerce on traditional retailers?

  They are transitioning to e-tailers