E Commerce: GCSE Business Definition

What is e-commerce?

In GCSE Business, e-commerce is the process of buying and selling goods and services online.

Businesses can trade through their own websites, via apps, social media, or on platforms such as Amazon, eBay, and Etsy. These platforms are particularly attractive for smaller businesses selling their products, as setting up an online store can be costly. Some consumers are concerned about the security risks of purchasing online, so these well-known platforms offer some peace of mind.

E-commerce can make life more convenient for customers, as purchases can be made at any time of the day and from any location with an internet connection. Purchases can be made on a computer, mobile phone, tablet, or other connected devices. As complex logistics channels have developed, consumers can purchase from suppliers almost anywhere in the world, providing them with more choice and the ability to shop around for the best price with ease.

E-commerce is an important source of competitive advantage. Businesses in competitive markets not selling their products online are less likely to keep up with any rivals who have the potential to reach large audiences with e-commerce. Selling online can also reduce costs, as there is less need to operate expensive business premises and, in general, fewer staff are needed to operate online than in physical stores.

E Commerce Revision Resources to Ace Your Exams

Save My Exams has a great range of resources to explore the topic of e commerce further. 

Read our GCSE Business revision notes on e-commerce, or test your knowledge of e-commerce in our exam questions to improve your grades. 

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