E-commerce is buying and selling goods or services over the internet. Customers can order through a website or an app.

What are the benefits of e-commerce for a retailer?

An online retailer can trade 24 hours a day and reach far more customers. An online retailer may also save on the cost of running shops.

What are the drawbacks of e-commerce for a business?

A business must pay to build and maintain a secure website. Online customers can compare prices instantly, which makes competition fiercer.

Why has e-commerce increased the competition faced by high-street shops?

Online sellers often have lower costs and can charge lower prices. Shoppers can compare prices on their phones before buying in a shop.

AQA GCSE Business 8132

Business in the Real World

Topic overview What a business is and why people start one Goods, services, needs, wants and factors of production Business sectors, entrepreneurs and a changing business environment Sole traders, partnerships, limited companies and not-for-profit organisations Business aims and objectives Why business objectives differ and change Stakeholders and their influence on businesses Factors affecting business location Business planning and basic financial terms Expanding a business and economies of scale

Influences on Business

Topic overview E-commerce and digital communication Ethics, the environment and sustainability Interest rates, employment and consumer spending Globalisation and exchange rates Employment, health and safety and consumer law Competition, risk and uncertainty

Business Operations

Topic overview Job, flow and lean production Managing stock: just in time and just in case Suppliers, procurement, logistics and supply chains Quality control, quality assurance and TQM Customer service and the sales process

Human Resources

Topic overview Organisational structures, span of control and delegation Recruitment, selection and contracts of employment Financial and non-financial methods of motivation Induction, on-the-job and off-the-job training

Marketing

Topic overview Identifying and satisfying customer needs Market segmentation Purpose of market research and primary and secondary research Market research methods and interpreting findings Pricing methods and factors affecting price New products, USP, brand image and the Boston Matrix Product life cycle and extension strategies Promotional methods and the promotional mix Channels of distribution, e-commerce and m-commerce The integrated marketing mix

Finance

Topic overview Sources of finance Cash flow and cash flow forecasts Financial calculations and average rate of return Break-even charts and margin of safety Income statements and statements of financial position Profit margins and judging financial performance

Influences on Business

E-commerce and digital communication

3 things to know
Both papers

Overview

E-commerce and wider markets, new products created by digital technology, pressure on the high street, food delivery apps, digital communication with customers, staff and suppliers, and the risks of relying on it.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

What is e-commerce?

Key term

How does e-commerce let a business reach a wider market?

Key term

How has digital technology created new products and changed old markets?

Questions from this subtopic

Each one with the model answer underneath.

1
What is e-commerce?
Model answer
E-commerce is buying and selling goods or services over the internet. Customers can order through a website or an app.
2
How does e-commerce let a business reach a wider market?
Model answer
A website can be visited by customers anywhere in the country or the world. A small business can sell nationally or abroad without opening new premises.
3
How has digital technology created new products and changed old markets?
Model answer
Digital technology has created products such as streaming services, apps and online banking. Businesses selling older versions, such as DVD shops and travel agents, have lost sales.
4
What are the benefits of e-commerce for a retailer?
Model answer
An online retailer can trade 24 hours a day and reach far more customers. An online retailer may also save on the cost of running shops.
5
What are the drawbacks of e-commerce for a business?
Model answer
A business must pay to build and maintain a secure website. Online customers can compare prices instantly, which makes competition fiercer.
6
Why has e-commerce increased the competition faced by high-street shops?
Model answer
Online sellers often have lower costs and can charge lower prices. Shoppers can compare prices on their phones before buying in a shop.

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Business in the Real World

Influences on Business

Business Operations

Human Resources

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The pays a fee and a share of revenue.

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