E-Commerce

E-Commerce is performing a transaction online. It is the buying and selling of products over the internet. This service is used by millions of people across the whole world. There are many different retail shops and now supermarkets that offer an online service so that you can order food straight to your door. These online sites include; Amazon, EBay and Sainsbury’s.

Click and Collect

Most stores now offer a click and collect system. This allows the customer to order items online and have it delivered to the store so they can collect it from a store near them, usually within a week. This is a convenient and popular way for customers to shop as it can cut costs of delivery and sometimes it may be quicker. Also stores are able to offer products they do not have stocked in store online, for customers to be satisfied.

Online Transactions

Performing a transaction online can come with some difficulties. Delivery is an essential part of online shopping as you are paying for your items and therefore expect them to be delivered within the time period they tell you. This is why stores had come up with the ‘click and collect’ idea, to give the customers another option which suits them best. Also when online shopping you need to be able to pay using either a credit card or debit card and this is where security can become a problem. Credit cards are seen to be a better way of paying a transaction online as if any details are stolen and money has been lost from your account then the company you are buying from repays you. Whereas if the same problem happens with your debit card you cannot be repaid as your money is instantly been lost and there is no help through insurance companies.

Amazon

Amazon is a popular transactional website used by people all around the world. They are purely online and offer customers fast and reliable delivery. Amazon started off as a book seller but has now developed further, now selling a range of products. They have a number of warehouses across the world, storing all the merchandise you are able to purchase online. Amazon delivers worldwide and tend to send your order all at once, under some circumstances if you order multiple items and one of them items is out of stock at the nearest warehouse then Amazon will split the order into two separate packages and ship them from different warehouses.

EBay

Another popular online website used by many is EBay, which allows the user to be the seller. The seller can put on items and people can bid on it if they like it, however it is not guaranteed to sell as it may not come in interest to anyone. EBay itself does not have their own delivery service, it is the seller’s responsibility, and therefore the feedback does not affect EBay. Sellers can also have their own ‘click and collect’ where the buyer would have to travel to collect the delivery. EBay uses PayPal as the paying system for the buyer which is very secure as PayPal knows the information of the seller and buyer but will never allow them to know each other’s details. PayPal also makes the paying process much simpler and quicker for the buyer. 
Many other companies also use PayPal for the same online buying security, however Amazon does not. EBay is also different to Amazon in the way where feedback from the buyer will not affect EBay itself as it is the seller’s problem for their products, whereas the blame for Amazon would go straight to them. The feedback EBay sellers get shows other buyers whether they are reliable and can be trustworthy, meaning that the buyer would feel trusted with a seller with a better feedback.

Advantages

Business

The business would get more customers as it is widely available around the world. Also they do not have to pay extra costs of rental for the store and they would not need to pay employers to keep the stores running.

Employees

The employees would receive more qualifications as it is a different style of job; therefore they are gaining new experiences and skills from working online.

Suppliers

Suppliers would earn more money as the cost of storage for the products would decrease as they would not need an outlet, they would just need a warehouse which is a lot cheaper.

Customer

It is a very quick and easy process for the customers. It is also very accessible and they do not need to travel to search for a particular product, they can simply go online. There tends to be a lot more options online as there is a wider range of products.

Disadvantages

Business

Businesses would still need to cater for people who cannot access the internet, therefore they would still need to keep stores open to provide somewhere for those who need it. This could also mean that the online service is not as developed as the store itself and it could cause problems for the business.

Employees

The employees would lose out on their jobs as there is not as much work they need to do and the business would not need to employ many workers as there less stores are being run.

Suppliers

It can be more costly for the suppliers to ship the products and to be able to send them to the store or the customer as it would cost more to individually ship than to the store where they can distribute them.

Customer

For the customer it is not as convenient because if you are buying a piece of clothing you cannot see the actual product in person and you are unable to try it on yourself. Also you have to wait for the item to be delivered to you, rather than being able to purchase it and have it with you straight away if you are in store. Similarly it is not suitable for people who do not have access to the internet and they may not feel safe giving their details online.