Unit 8 - P2 - Explain the impact of introducing an e commerce system to an organisation
ADVANTAGES OF HAVING AN E-COMMERCE WEBSITE:
Global Marketplace: By having an E-commerce website, the company will allow its customer’s to
purchase products online, all around the world. This would give the company the opportunity to
grow its business, and reach customers they would not have been able to reach by having a local
store. It would make an ‘image’ for the company, as users could prefer it over another online e-
commerce website that is offering similar type of things.
Non-Stop Trading: By having an online store, customers would be able to purchase products from
the company’s website in 24/7. This could increase the profits as the company would receive daily
users, purchases at day and night, every single day. This would also help customers, as maybe a local
shop would close at 18:00, however their online shop would still be open, so they could buy what
they want online, and perhaps get a next day delivery or pick-up straight from the local shop.
Cheap: The price of having an online store is much cheaper than having a local shop down on the
street. A local shop could cost a lot, if we add up the amount of money needed to get it running
(rent/buy, staff members/ design etc.). Of course, to have an online shop could cost a lot if we add
up all the prices, however, it’s a lot cheaper on the long run comparing it to an actual shop.
Discounts: An e-commerce website could offer various of deals that the customers simply wouldn’t
get it from other online stores, making it look the best choice to choose and purchase from. The
company could easily compete with different online shops and companies by giving customers more
discounted products on their sight zone.
Easy to Find: An e-commerce website would give easier access to users who are living far away. Also,
a simple search bar and an easy-to-use navigation bar would do the trick, as customers would
basically be 2-3 clicks away to get what they are actually looking for, instead of looking for their
products in-the-store. So, an easier searching system would be available that would speed up their
experience while using an e-commerce website.
Collecting Customer’s information: By collecting customers information on the website, I could offer
them exactly what I think they are going to be looking for the next time they visit my website. I could
easily advertise different products for the right target audience, so they would more likely to
purchase the item, rather than advertising something to someone, that wouldn’t care about the
product.
Extra Profits: The website could include different services that could increase the profits overall.
These services can be: Repair, used items, extra warranties (good for both business’s image, and for
customers) etc. Also, by selling products that are getting old for a reduced price, or offering things
that other companies don’t do, could overall increase the incoming profits for the website.
Pricing: Flexible pricing could also be available when choosing to have an e-commerce website.
There are different algorithms that could increase or decrease the prices on the website when
customers would demand an item more than any other. Changing prices, would also be a lot easier,
as the company would not have to label everything again, but only change the price online and then
click on save, so it would be a lot quicker, and would not include any other jobs to get it done.
Roland UDVARLAKI – Unit 8 – P2 - Page 1 of 2
ADVANTAGES OF HAVING AN E-COMMERCE WEBSITE:
Global Marketplace: By having an E-commerce website, the company will allow its customer’s to
purchase products online, all around the world. This would give the company the opportunity to
grow its business, and reach customers they would not have been able to reach by having a local
store. It would make an ‘image’ for the company, as users could prefer it over another online e-
commerce website that is offering similar type of things.
Non-Stop Trading: By having an online store, customers would be able to purchase products from
the company’s website in 24/7. This could increase the profits as the company would receive daily
users, purchases at day and night, every single day. This would also help customers, as maybe a local
shop would close at 18:00, however their online shop would still be open, so they could buy what
they want online, and perhaps get a next day delivery or pick-up straight from the local shop.
Cheap: The price of having an online store is much cheaper than having a local shop down on the
street. A local shop could cost a lot, if we add up the amount of money needed to get it running
(rent/buy, staff members/ design etc.). Of course, to have an online shop could cost a lot if we add
up all the prices, however, it’s a lot cheaper on the long run comparing it to an actual shop.
Discounts: An e-commerce website could offer various of deals that the customers simply wouldn’t
get it from other online stores, making it look the best choice to choose and purchase from. The
company could easily compete with different online shops and companies by giving customers more
discounted products on their sight zone.
Easy to Find: An e-commerce website would give easier access to users who are living far away. Also,
a simple search bar and an easy-to-use navigation bar would do the trick, as customers would
basically be 2-3 clicks away to get what they are actually looking for, instead of looking for their
products in-the-store. So, an easier searching system would be available that would speed up their
experience while using an e-commerce website.
Collecting Customer’s information: By collecting customers information on the website, I could offer
them exactly what I think they are going to be looking for the next time they visit my website. I could
easily advertise different products for the right target audience, so they would more likely to
purchase the item, rather than advertising something to someone, that wouldn’t care about the
product.
Extra Profits: The website could include different services that could increase the profits overall.
These services can be: Repair, used items, extra warranties (good for both business’s image, and for
customers) etc. Also, by selling products that are getting old for a reduced price, or offering things
that other companies don’t do, could overall increase the incoming profits for the website.
Pricing: Flexible pricing could also be available when choosing to have an e-commerce website.
There are different algorithms that could increase or decrease the prices on the website when
customers would demand an item more than any other. Changing prices, would also be a lot easier,
as the company would not have to label everything again, but only change the price online and then
click on save, so it would be a lot quicker, and would not include any other jobs to get it done.
Roland UDVARLAKI – Unit 8 – P2 - Page 1 of 2
