Commercial Growth

Electronic commerce more commonly known as e-commerce is the buying and selling of products or services over a system such as the internet. E-commerce became possible in 1991 when the internet was opened to commercial use and since then millions of users have experienced the ups and downs of buying and selling on the internet.

Advantages

· Users can buy or sell their products 24/7. This is because the internet is a continuous service all over the world and never closes overnight or for a coffee. It is also helped by the fact that all around the world there are different time zones meaning that there will always, whatever time it is, be a large number of people surfing and having fun. You can even do it in their pyjamas.

· Companies have a greater reach to customers. This is because they are basically selling their products in the customer’s comfort of their own home. This causes the customer to become relaxed and will therefore part with their cash more easily.

 · Anyone can start an online business. Starting a business online is much easier and often much simpler than starting out on a high-street. By starting it online there is also a much larger audience for the shop as it is broadcasted across the world meaning that there would be more people wanting to buy all the products that no one else wants to buy.

· Customers can select products from different providers without having to physically re-locate. By shopping online customers have the choice of multiple products. By doing this if benefits the customer becausue the stores have to try and keep their prices lower than other providers allowing them to gain the trade that they need to stay in business.

-Business running costs are lower than a physical business. This is because you don’t have to hire premises out to keep all you stock in, and you also don’t have to hire as many staff.

Disadvantages

-E -Commerce is an easy tool for thieves to start a business. there are no security checks on people when they set up a site allowing thieves to set up a fake brand site so that they can sell the big names for small prices making them loads of money.

Customer can not physically see the product before purchasing. Especially with clothes because each have size has a different sizing system so you could buy one and then be like it’s nice but it doesn’t fit and then you to send it back and it’s like a massive effort. Oh and the quality might not be a good because you could buy something which is like really nice and then try it on and it would feel disgusting and then you have to send it back again and it’s like so much effort again. Also with eBay and stuff people could like sell empty boxes and stuff so you’re not really SURE WHAT YOU ARE BUYING.

Tecnology problems can cause problems ordering more than you want because of accidental clicking

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Online Shopping

Signing up to an online store puts you straight onto the mailing list. Once on the mailing list, e-mails will be sent to the user marketing new products and price reductions.

With the invention of smartphones people can now design ads, banners etc to be placed into the app, a new way of marketing along side this the QR code has become a massively popular way to help advertise a product.

QR codes appear in loads of different places here is one about a mini and another in a train station. The most famous QR code it in times square.

Anyone can create a QR code, here’s one we made.

Google ads

 Google uses a technology that will only target the marketing towards the audience, for example if a person searched for online groceries, Google Ads would promote Asda and Tesco online.  Another feature that Google Ads offer is pay per hit, meaning Google pay the specific company each time the link is clicked, this is a new form of e-marketing where people get paid to take part

Geo-marketing

Geo-marketing is another new way of e-marketing, as more people are starting to use phones, companies can track these devices and send 'push notifications' to the user dependant on their location, for example if the user was located near a Pizza Hut and the user had a Pizza Hut, the app would suggest meals and offers at that specific location.

Online Auctions

Online auctions can save us money, this is because people can start to bid what they feel is right for the product, and to stop us losing money we can set a minimum price so that we get what we feel it is worth.

An addiction. Some people become addicted to online auctions, as it is a form of bidding, people can start with a low amount (matter of pennies) and end up spending hundreds of pounds. For example people were posting ipod nanos on ebay for 20p a few years ago and people just kept bidding on them until they were in the hundreds and actually way over the retail price.