Technology: E-commerce

The idea

E-commerce is the buying and selling of goods and services online. It allows businesses to reach a wider market, operate 24/7, and reduce physical store costs. For example, a small clothing retailer can sell nationwide via its website. However, e-commerce also brings challenges such as increased competition, cybersecurity risks, and the need for reliable logistics. It requires investment in technology and can change the competitive landscape. The impact on stakeholders, such as customers gaining convenience and employees needing new skills, should also be considered.

What earns the marks

• Define e-commerce as online transactions of goods and services.
• Explain advantages: wider market, 24/7 trading, lower overheads.
• Explain disadvantages: competition, security issues, logistics complexity.
• Analyse how e-commerce affects business functions like marketing and operations.
• Evaluate the impact of e-commerce on small versus large businesses.

Common mistakes and how to put them right

• Thinking e-commerce only involves selling physical goods.

  Put it right: It includes services and digital products.

• Assuming e-commerce eliminates all costs.

  Put it right: It still requires website maintenance and marketing.

• Overlooking cybersecurity risks, which can lead to data breaches and loss of customer trust.

Exam tips

• Use examples of well-known e-commerce businesses to illustrate points.
• Discuss both benefits and drawbacks to show balanced evaluation.
• Relate e-commerce to other topics like technology and globalisation for synoptic answers.