ICT BTEC Level 3 Unit 8 E-commerce P2
Unit 8
SULEMAN SYED
P2
Impact of Introducing an Ecommerce System to an
Organization
Benefits of introducing an e-commerce system to an organization
Organizations are able to carry out their business without worrying about distance and time. Customers can simply log into the organization’s website whenever they please and purchase goods without even moving a muscle.
Organizations are able to sell their products and services to customers directly whilst cutting the costs of long-established retailing methods. E-tailer have access to greater opportunities of scale and so lower running costs are maximized. This is much cheaper than retail outlet based organizations.
It lends a helping hand to organizations in order to reduce the time which is taken for delivery, the costs of labour, and the cost incurred in a number of different areas. Some examples are: document preparation, mail preparation, telephone calling, error detection and correction, reconciliation, supervision expenses among others.
Organizations are capable of reaching more customers. This means that organizations are able to sell their products and services around the whole globe instead of being restricted to one particular place.
Organizations are able to trade full time 24/7 as they don't have to take care of any office or a shop because it is all happening online, anytime and every time.
Organizations are able to sell things much cheaper as there are no overheads e.g. no electricity bills, no gas bills etc.
Organizations can also sell themselves on the benefits associated with the positive environmental benefits associated with ecommerce.
However there are risks associated with engaging in e-commerce.
The risks of introducing an e-commerce system to an organization
These factors need to be considered before introducing an e-commerce system to an organization
Lack of Trust
It is a danger to the information of the organization and intellectual
property
SULEMAN SYED
P2
Impact of Introducing an Ecommerce System to an
Organization
Benefits of introducing an e-commerce system to an organization
Organizations are able to carry out their business without worrying about distance and time. Customers can simply log into the organization’s website whenever they please and purchase goods without even moving a muscle.
Organizations are able to sell their products and services to customers directly whilst cutting the costs of long-established retailing methods. E-tailer have access to greater opportunities of scale and so lower running costs are maximized. This is much cheaper than retail outlet based organizations.
It lends a helping hand to organizations in order to reduce the time which is taken for delivery, the costs of labour, and the cost incurred in a number of different areas. Some examples are: document preparation, mail preparation, telephone calling, error detection and correction, reconciliation, supervision expenses among others.
Organizations are capable of reaching more customers. This means that organizations are able to sell their products and services around the whole globe instead of being restricted to one particular place.
Organizations are able to trade full time 24/7 as they don't have to take care of any office or a shop because it is all happening online, anytime and every time.
Organizations are able to sell things much cheaper as there are no overheads e.g. no electricity bills, no gas bills etc.
Organizations can also sell themselves on the benefits associated with the positive environmental benefits associated with ecommerce.
However there are risks associated with engaging in e-commerce.
The risks of introducing an e-commerce system to an organization
These factors need to be considered before introducing an e-commerce system to an organization
Lack of Trust
It is a danger to the information of the organization and intellectual
property