P2 Unit 8
In this task I am going to make clear the benefits and downsides to selling products online and the effect that they will include on an E-Commerce business.
In terms of selling and buying on the web there are many different benefits to this intended for example…
Global Marketplace – this is basically where a firm that is trading online provides access to the global market and will sell to anywhere in the world having a global market can have a great effect on the customer as it permits them to sit at home and purchase from an additional country, this can be better than opening a store whenever you only have usage of the local community and if you need to extend your consumer base you would have to open up one other store in another part of the country.
day-to-day trading – 24/7 trading is also an additional benefit to e commerce because it enables you to shop promote 24/7, so you won't need as much staff because you can perform most of this kind of yourself, also this benefits the consumer since they can to use home and get things if he or she feel the need to, this can possibly be by home/at function, this is much better than opening up a shop because they may have closing instances the internet is available 24/7, 7 days a week
Relatively low starting and running costs – preparing an online marketplace is better than opening and real store as it means you won't have to wide open a store, work with staff and paying power costs, this really is a huge advantage for the seller as it means that most of the product sales money should go into getting new inventory and the others is revenue, as the vendor doesn't have to fund anything else, but since they get more popular they may have to get a larger warehouse.
Competitive border – this can be good if the other business that provides the same thing as you, only contains a store, as the online market can reach a bigger market than the traditional store, therefore you make more profit and sales than them because they have to pay money for the electric powered and utility...