Page 189 - Cambridge IGCSE Business Studies

13: Marketing mix: place and promotion

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Figure 13.3 Examples of e-commerce

Opportunities and threats of e-commerce
The most common opportunities of e-commerce for both businesses and

consumers are shown in Table 13.2.

Opportunities of Threats of e-commerce Opportunities of Threats of e-commerce
e-commerce to businesses for businesses e-commerce to consumers for consumers
Increased market – the Increased competition – Convenience – consumers can order Fraud – a website might
business is able to sell its goods competitors can now be their products from the comfort of take a consumer’s money
and services to consumers from any part of the world, their own homes at any time of day. and not deliver the goods.
throughout the world. not just the local market.
Reduced costs – the staff ing Unfamiliarity – consumers Wider choice – consumers are now Hacking – a consumer’s
and other costs of shops are are less likely to buy able to buy goods which they would personal details or bank
saved. products from new not have had access to if they were account details might be
businesses they don’t know. only able to use their local shops. ‘stolen’.
Better information – the website Lower prices – competition is No personal service –
can provide potential consumers worldwide and this reduces prices. there is no face-to-face
with all the information they contact between the
need about the goods and consumer and seller.
services available.
Better information – consumers are Returning items – it can
able to read about the goods and be inconvenient and
services available from the websites of expensive to return goods

the different businesses and also read which do not meet the
reviews from consumers who have consumer’s needs e.g.
bought products from businesses. clothing that does not fit.

Table 13.2 Opportunities and threats of e-commerce to business and consumers