Benefits and Drawbacks of Having an E-Commerce Site

Added on - 17 Mar 2021

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D1IntroductionIn this report, I will discuss the social implications, I will explain the benefits and drawbacks of havingan e-commerce site for customers and Urban (my company).BenefitsMore competitiveIn the Past 5 years more and more people are starting their business online because itmeans they can stretch their products to such a bigger variety of customers. And because somany businesses taking their companies online it will be more competitive to gaincustomers. This will allow businesses like Urban to stay on top of their game and not fallbehind to their rivals. They can use their competitors as benchmarks and try to achievemore than what their rivals earn. This is also an advantage for customers because ifbusinesses keep raising their game then customers will benefit from sales and cheaperprices.Wider target audienceRunning an e-commerce site means you will need to target everyone over the age of 18.One example of an e-commerce site that does this is Asda. Asda Has an e-commerce sitewhich sells first hand items to almost anyone above the age of 18, like Asda, Urban will beable to sell mobile phones to everyone over the age of 18. This is to gain more sales andmore revenue to their site. This means for your e-commerce site you must be able to sellanything to anyone or in some cases you can sell an item which is used for a certain agegroup on the site. Customers also benefit from businesses having a larger target audiencebecause an increased number of people will be targeted by the business.Easier stock controlWith technology fast developing it means controlling your stock will be a lot easier. Theneed for accurate stock control becomes even more important. The aim of stock control isto minimise the cost of holiday stocks whilst ensuring that there is enough stock on site tomeet customer demand. For example, if you are an online company like Urban and yourstock was being bought from a certain area of where you are based. You could automaticallygive that part of where you are more stock. This also benefits customers because there adecreased chance of the product they want to go out of stock.Reduced OverheadsRunning a business online means you will not be paying gas, water, housekeeping billsbecause your business is situated online only. The only bill you will be paying is electricity.And so a big benefit to running a business online is the cheaper cost of operating thebusiness. Urban will save on staff, wages and other business costs, which are usually anexpense such as electricity, rent and heating costs.
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