ICT in business (Shopping)

EFT - Electronic Funds Transfer - The process of transferring money electronically without need for paper or the delay that using paper work brings.
1. Can include -Credit/debit cards, paypal, using online banking.
2. Advantages of electronic payment to customer:
  1. Faster receipt of goods or services.
  2. Quicker to enter card details rather than send an cheque in post.
  3. The credit card company will take up any complaints you have with the store.
3. Disadvantages to customers:
  1. payments are easier so a customer may make impulse purchases they later regret.
  2. There may be a tendancy to spend too much on credit cards.
  3. Not everyone has a computer/ Internet access/
4. Advantages of electronic payment from stores:
  1. Cash flow is improved as payment is made straight away.
  2. Faster delivery can be offered which can improve turnover.
  3. EFT can have accountancy systems so fewer account staff needed which reduces business costs.
5. Disadvantages for store:
  1. Stores have to pay a commission for electronic payment to the companies being used to make payment e.g.paypal.
  2. It is expensive to set up a payment service.
  3. Need to have security procedures to ensure customer privacy specifically on credit/debit cards.
E-Commerce
1. All the activities needed for the successful running of an business which would involve buying, paying, selling, marketing etc.
  1. Advantages:
    1. Always accessible 24/7 on the Internet there are no opening hours for e-business.
    2. Key word search facilities allow quick searches for products.
    3. Company can send special offers through email as they see what you purchase when you enter personal details.
2. Drawbacks:
  1. Unemployment as computers automate many of the administrative tasks performed by people.
  2. Security problems, many people are scared about inputting card details when paying for goods, they are worried about ID & card details being used fraudulently.
  3. Lack of customer trust, bogus websites & bad experiences of customer service have put some consumers off shopping using the internet.
Barcode: A machine readable code in the form of numbers & a pattern of parallel lines light & dark and varying widths.
1. From a code the system can tell the country of origin, the manufacturer, the name of the product etc.
  1. Advantages:
    1. Faster due to scanners are sophisicated.
    2. More accurate than manually typing in codes.
  2. Disadvantages:
    1. Can only be used for input of numbers.
    2. Expensive as latest scanners need to be installed in supermarkets.
Just in time stock control
1. Products pass through the electronic POS, the relevant data is sent to the database containing info about stock control. When stock falls below a specific level more of that specific product is ordered, only a bare minimum stock is ordered and there is no need to maintain a large warehouse.
2. Advantages:
  1. Smaller stores as not much stock held.
  2. Store able to change to changing demand through the day.
  3. Do not run out of fast selling items.
3. Disadvantages:
  1. Expensive.
  2. More admin staff needed.
  3. True stock differ to theft.

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ICT in business (Shopping)

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	Created by Lauren Pickett about 11 years ago