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 a business uses more e-commerce?

  There will be fewer physical outlets
• What is a consequence of using fewer physical outlets?

  It leads to reduced costs
• What costs are reduced by using e-commerce?

  Rent and overhead costs
• How does reduced physical presence affect breakeven output?

  It likely reduces breakeven output
• What is the effect of increased e-commerce on market reach?

  It increases market reach beyond locality
• How does a weak pound affect exporting businesses?

  It makes them more price competitive abroad
• What is the relationship between reduced costs and increased sales in e-commerce?

  Reduced costs can lead to increased sales
• What are the costs associated with having a website for e-commerce?

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

  Increased sales likely exceed website costs
• What is the trend in business models due to e-commerce?

  • Shift from retailers to e-tailers
  • Increased online presence
  • Focus on digital sales strategies