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The impact of introducing an e-commerce system to an organisation

Part of my ICT coursework
by

Cherié Barr

on 17 January 2013

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Transcript of The impact of introducing an e-commerce system to an organisation

The impact of introducing
an e-commerce system
to an organization Global Marketplace Drawbacks 24/7 trading The benefits Lack of human contact Search facilities/competitive edge Relatively low start-up and running costs Consumer trust Delivery issues Security issues International legislation Product description problems Access to the global market place will benefit the business as it means that they will become better known. This will then enable the company to get ahead of its rivals because it can also compete online. Also, the other benefit of global marketplace is that they will gain consumers and therefore their sales will increase resulting in a profit increase. This enables consumers to shop whenever they want this will benefit both the consumers and the business. It will benefit the consumers because it means that they can buy products online any time they want. This will then benefit the business as it means that their sales and profit will increase. This is a benefit for the company and the consumers. It is a benefit for the company as it means it will cost them less money. It is also beneficial to the consumers. This is because if it cost the company a lot of money then they might increase the prices of their products so that they get the money back. This would then mean that consumers would be paying more money. This is beneficial to the consumers because search facilities allow them to shop around to compare the prices of products on competing company's websites. The company will need to gain trust of consumers as they will need to trust them enough to share their personal details such as bank details. This wont be easy for the business as they will need to gain the trust of consumers. This could take a long time which will be a draw back. This is a draw back as it is easy to communicate with someone in person. Also, an email can easily be misread. This is a drawback as the company could send an email to a consumer and it could be interpreted as rude even if it was intended to be.
Also, if a consumer has a problem then the lack of human contact could act as a barrier as it will be harder to communicate and solve the issue. This is a draw back for the company because if they have delivery issues then they could potentially lose customers due to them being unreliable.
However, to overcome this they could arrange for their deliverers to phone the consumer before leaving and to phone them if they get stuck in traffic so that the consumer knows if there will be delays. There could be security issues on their website. This would be a disaster as the consumer would've trusted the company with their bank details and therefore security issues would lose the trust of their consumers and therefore lose them consumers. The product description could be different to what the actual product looks like.
Also the size description could be different to the sizing therefore to overcome this they could display the measurement of the item. International legislation's could be a draw back as it means that there are set rules and regulations which the company has to follow when selling internationally. This is something that they will need to try and reinforce over the internet which could be difficult, however, not impossible.
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