What is digital trading
Digital trading/ecommerce refers to ordering,buying,selling and paying for products and services using the internet.
Advantages of trading to a business
+An effective website will give the business a professional image
+Provides access to a global market
+Increased sales due to a larger market and the fact that people can trade digitally 24/7/365
+Website information can be updated quicker than business documents, such as catalogues
+Digital trading could lead to lower costs for the business
+Cost effective way of promoting the business to many customers, through search engine listings
+Some businesses will not need a high street location or expensive showrooms, this is a major cost saving.
Disadvantages of trading to a business
-Costs associated with the design, maintenance and updating of the website
-New staff with expertise in this area may need to be appointed or existing staff retrained – all of which adds to costs
-Technical difficulties can lead to a poor corporate image
-Security concerns can be a problem, especially when dealing with people’s money or personal details
-Costs will be incurred through the delivery of goods to customers
-Adds additional legal and security issues
-Increase the level of competition faced by the business
Advantages of trading to customers
-may benefit from lower prices due to reduced costs placed on the business
-can shop at a time convenient to them-24/7/365
-have their products delivered without the inconvenience of visiting a shop
-can access important information, e.g price comparison, online reviews
Disadvantages of trading to customers
Details on website may be inaccurate, eg stock levels/contact details
-Not all customers may have access to a computer or the Internet, or indeed have the necessary skills to navigate it
-Orders placed can be difficult to change if the customer makes an error while ordering
-There is the possibility of being defrauded if the website is not secure
-On secure websites credit card or personal details could be intercepted
-There will be a time delay between ordering the item and the delivery of it, this can also be expensive
-Reliance on technology functioning properly
-Loss of social interaction
-Products may appear different on the website, meaning goods will have to be returned and postage costs paid
