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E-Commerce

• E Commerce can help to increase sales and reduce costs:
• E Commerce doesn't have to spend money on physical promotion, as it can do this online and reach a larger audience
• Some firms can employ staff to deal with customers over the phones, whereas some make staff redundant as the information can be placed online
• Businesses that sell online dont need physical stores, which reduces property costs such as mortgages
• E-Commerce businesses dont have to operate somewhere fancy, so could place the business somewhere were wages are low
• All these saving mean prices can be reduced, which can attract customers and draw them away from the High Street
• E-Commerce means you have access to the foreign markets, essentially you have access to the international market, which is useful for small businesses, as it is cheap and beneficial.
• Internet shopping can be advantageous for consumers:
• They can shop from home
• They have access to a huge product portfolio
• Comparisons can be made easily eg price or quality
• E Safety on the businesses part means credit card info is kept safe
• They can track the delivery status on products
• Internet shopping can cause problems for consumers:
• Trustworthy websites are hard to verify
• Credit card details could be stolen
• Products cant be seen before buying and may take time to be delivered
• Exchanges and returns can be difficult or impossible
• Direct email becomes an issue