Place E Commerce And M Commerce aqa

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Exam code:8132

E-commerce

E-commerce is the trade of goods and services over the internet
- Businesses can trade through their own websites
- Alternatively, platforms such as Amazon, Ebay and Etsy offer the chance for small businesses to sell their products online
The rise of e-commerce means customers increasingly pay online using credit/debit cards
- Consequently, contactless payment systems (such as Apple Pay and Paypal) are growing in popularity
E-commerce can make life more convenient for customers and is a source of competitive advantage
- It also provides the potential for small businesses to reach large audiences
However, setting up an e-store can be costly and some consumers may be concerned about security risks of purchasing online

Evaluation of e-tailing for businesses and consumers

	Advantages	Disadvantages
Businesses	Websites offer a direct and cheap promotional method Businesses can easily make online purchases of supplies and materials from other businesses An easy-to-use and well-thought-out website can encourage customers to buy more E.g. Automation suggests complimentary products often purchased at the same time Dynamic pricing techniques can easily be implemented so profit can be maximised during periods of high demand	Competition comes from many businesses around the world, allowing customers to easily switch brands Large warehouses and efficient stock control systems are needed to fulfil online orders E-commerce is not suitable for businesses selling personal services such as beauty services or home improvements The lack of face-to-face contact with consumers means businesses miss out on instant and useful market research feedback
Consumers	Competition drives prices down and allows customers to easily ‘shop around’ and compare prices Electronic payment using credit and debit cards is relatively easy E.g. Using ‘one-click’ platforms such as Apple Pay E-commerce is convenient as it allows customers to shop from anywhere in the world E.g. when travelling, 24 hours, on many different devices Customers can buy from worldwide retailers so have increased choice E.g. Chinese e-commerce businesses Shein and Temu are increasingly popular in the UK	Poor connections or technical difficulties can sometimes deter or stop customers from using the website to make purchases Customers in low-income countries may not be able to access the products due to poor infrastructure, limiting potential market size Many consumers are concerned about identity theft or fraudulent use of credit cards if they buy goods online Products cannot be handled or tried out before purchase, which means customers frequently return them because they are unsuitable

M-commerce

M-commerce refers to transactions conducted on a mobile phone
Most businesses have developed optimised applications that allow customers to browse and purchase their products on mobile phones
- E.g. Next‘s mobile app is a simplified version of its popular website that allows customers with an account to view products, check availability, place and check the progress of orders
Text messaging and instant messaging, often via the app itself, can be used to communicate special offers, links to websites and product surveys to customers
- E.g. Logistics company Evri sends customers text messages containing delivery updates and links to review recent delivery experiences

Examiner Tips and Tricks

A common misconception is that setting up online selling operations involves a business selling via its own website.

Small businesses – and even many larger firms – do not have to go to the expense of setting up and operating their own e-commerce or m-commerce platforms. They can sell products via third party sites such as Etsy or Amazon, allowing them to access large markets.

Business GCSE AQA

Place E Commerce And M Commerce aqa

E-commerce

Evaluation of e-tailing for businesses and consumers

M-commerce

Examiner Tips and Tricks

Responses