E-commerce

• E-commerce, or electronic commerce, refers to the buying and selling of products and services using devices connected to an electronic network, such as the internet
• The three things needed for e-commerce:

  • a seller who has products and services that are displayed electronically
  • a buyer who has the equipment required to view the seller’s products and services, and a means of paying for them
  • a network that enables information and payment to be exchanged by the buyer and seller
• Advantages of e-commerce:

  • Attract customers across the world
  • Sell at any time of day or night
  • Receive payments immediately
  • Reduced overhead costs compared to running a physical shop
• Disadvantages of e-commerce:

  • More competitors from across the globe, making it harder for a business to get noticed
  • Employees may need new skills
  • Procedures needed for how products and services will be delivered and processing returns
  • Need to maintain and update technologies, which may be expensive