Computers in Retail Industry (Cambridge (CIE) IGCSE ICT)

Revision Note

Author

Robert Hampton

Expertise

Computer Science Content Creator

POS & EFTPOS

What is POS & EFTPOS?

Point of Sale (POS) is a computer terminal used to read product barcodes
Barcodes are used in an automatic stock control system in shops
A barcode is part of a process that involves:
- Every barcode being assigned to a product in stock
- Each product record contains its price, stock level and a description
- When a barcode is matched with a record the information is transferred to the POS terminal and the price is displayed on the screen
- The stock level is reduced by one
- If the current stock level falls below a minimum reorder stock level it triggers a restocking process automatically
Electronic Funds Transfer at the Point of Sale (EFTPOS) is how a payment is made to purchase good or services using a card or electronic devices such as smartphones
Examples of EFTPOS include:
- Chip and Pin
- Contactless
- Near field communication devices (NFC)

Chip and Pin	Contactless	NFC
Enhance security with two-factor authentication Require customers to enter a personal identification number (PIN)	Allow for faster transactions Enable customers to tap their card on the terminal	Facilitate payments through smartphones and other devices Increase convenience for customers

Internet Shopping

What are the advantages and disadvantages of internet shopping?

Internet shopping is the act of purchasing good or services online through a website or mobile application
Characteristics of Internet Shopping
- Online stores accessible through web browsers
- Wide variety of products and services are available
- Convenient and often open 24/7

Advantages and disadvantages to the customer

Advantages	Disadvantages
Time-saving and convenient Shop from home or on the go Avoid queues and busy stores Greater product variety Access to the global market Compare products and prices easily Customisation options Personalise items or services Tailor purchases to individual preferences Potential cost savings Competitive pricing due to lower overheads Take advantage of online sales and promotions	Security concerns Risk of fraud or identity theft Need to provide personal and financial information Limited physical interaction Can't touch or try products before purchasing This may lead to dissatisfaction or returns Delivery delays and fees Wait for items to be shipped and delivered Additional costs for shipping and handling Impersonal customer service Difficulty resolving issues or returning items Lack of face-to-face interaction with staff

Advantages

Disadvantages

Time-saving and convenient
- Shop from home or on the go
- Avoid queues and busy stores
Greater product variety
- Access to the global market
- Compare products and prices easily
Customisation options
- Personalise items or services
- Tailor purchases to individual preferences
Potential cost savings
- Competitive pricing due to lower overheads
- Take advantage of online sales and promotions

Security concerns
- Risk of fraud or identity theft
- Need to provide personal and financial information
Limited physical interaction
- Can't touch or try products before purchasing
- This may lead to dissatisfaction or returns
Delivery delays and fees
- Wait for items to be shipped and delivered
- Additional costs for shipping and handling
Impersonal customer service
- Difficulty resolving issues or returning items
- Lack of face-to-face interaction with staff

Advantages and disadvantages to the business

Advantages	Disadvantages
Can target prices, products and services at specific groups based on buying data Can update stock availability and prices more quickly than a physical store through their website Cheaper to publicise special offers rather than mail shots International customer base Increased profits due to lower overheads (e.g. fewer staff)	Increased Competition Digital Fraud and Security Concerns Technical Issues and Downtime Costs of Delivery and Returns Customer Trust Inventory Management Depersonalisation Online Reviews Dependency on Internet Infrastructure Logistical Challenges Legal and Regulatory Compliance Increased Customer Expectations

Worked Example

Modern supermarkets have automated stock control systems, which use data from the checkouts.
Describe how food items can be ordered by an automated stock control system so they are delivered before the stock in the supermarket runs out.

[4]

Answer

four of:

Each item is scanned/bar code is read at the POS terminal [1]
Bar code is searched in the database [1]
The quantity of products is reduced [1]
The stock database is updated [1]
When the minimum stock number/level/reorder level is reached [1]
Reads re-order quantity [1]
Goods flagged as ordered [1]
The automated stock system sends a signal to the warehouse computer to order new items [1]
The warehouse sends the items to the supermarket [1]
Re-order quantity is found in the database [1]
Flags removed [1]
The stock control system updates the stock levels in the stock control database with the new stock [1]

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