Place: E-Commerce & M-Commerce (AQA GCSE Business)
Revision Note
E-commerce
E-commerce is the trade of goods and services over the internet
Businesses can trade through their own websites
Alternatively, platforms such as Amazon, Ebay and Etsy offer the chance for small businesses to sell their products online
The rise of e-commerce means customers increasingly pay online using credit/debit cards
Consequently, contactless payment systems (such as Apple Pay and Paypal) are growing in popularity
E-commerce can make life more convenient for customers and is a source of competitive advantage
It also provides the potential for small businesses to reach large audiences
However, setting up an e-store can be costly and some consumers may be concerned about security risks of purchasing online
Evaluation of E-tailing for Businesses & Consumers
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M-commerce
M-commerce refers to transactions conducted on a mobile phone
Most businesses have developed optimised applications that allow customers to browse and purchase their products on mobile phones
E.g. Next's mobile app is a simplified version of its popular website that allows customers with an account to view products, check availability, place and check the progress of orders
Text messaging and instant messaging, often via the app itself, can be used to communicate special offers, links to websites and product surveys to customers
E.g. Logistics company Evri sends customers text messages containing delivery updates and links to review recent delivery experiences
Examiner Tip
A common misconception is that setting up online selling operations involves a business selling via its own website.
Small businesses - and even many larger firms - do not have to go to the expense of setting up and operating their own e-commerce or m-commerce platforms. They can sell products via third party sites such as Etsy or Amazon, allowing them to access large markets.
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