The sales process and customer service - OCRThe Influence of e-commerce on business activity

Often, customers value good customer service above many other factors when making purchases. Offering good customer service can help a business stand out, but they must comply with consumer law.

Part ofBusinessOperations, finance and influences on business

The Influence of e-commerce on business activity

E-commerce provides businesses with opportunities to attract new customers and increase their sales. However, with those opportunities come threats. A business may find itself struggling to maintain sales, as it has to compete against more businesses.

The impact of e-commerce

E-commerce will affect a number of different areas of a business, from distribution and storage, to the skills required by staff. A summary of the potential advantages and disadvantages of e-commerce is shown in the table below:

Advantages of e-commerceDisadvantages of e-commerce
The business can attract customers across the globe, potentially increasing market shareMore competitors from across the globe, making it harder for the business to get noticed
Sales can be made at any time of the day or night, increasing the likelihood of making a saleEmployees may need new skills, eg website maintenance which will require training or recruitment
Payments can be received immediatelyProcedures required for how products and services will be delivered and processing returns, eg space for ‘click and collect’ in stores
May reduce the need to have physical shops, which can reduce costsNeed to maintain and update technologies, including security software, which may be expensive
Advantages of e-commerceThe business can attract customers across the globe, potentially increasing market share
Disadvantages of e-commerceMore competitors from across the globe, making it harder for the business to get noticed
Advantages of e-commerceSales can be made at any time of the day or night, increasing the likelihood of making a sale
Disadvantages of e-commerceEmployees may need new skills, eg website maintenance which will require training or recruitment
Advantages of e-commercePayments can be received immediately
Disadvantages of e-commerceProcedures required for how products and services will be delivered and processing returns, eg space for ‘click and collect’ in stores
Advantages of e-commerceMay reduce the need to have physical shops, which can reduce costs
Disadvantages of e-commerceNeed to maintain and update technologies, including security software, which may be expensive
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