GCSE Business Communication Systems Unit 2 – The Business Environment Digital Trading

Learning Outcomes Students should be able to: define the term digital trading analyse and evaluate digital trading for a business and customers Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Digital Trading Digital trading refers to ordering, buying, selling and paying for products and services using the internet. This can be with: customers other businesses Images © thinkstockphotos.co.uk

Advantages of Digital Trading to a Business An effective website will give the business a professional image Provides access to a global market Increased sales due to a larger market and the fact that people can trade digitally 24/7/365 Website information can be updated quicker than business documents, such as catalogues Digital trading could lead to lower costs for the business Cost effective way of promoting the business to many customers, through search engine listings Some businesses will not need a high street location or expensive showrooms, this is a major cost saving. Images © thinkstockphotos.co.uk

Disadvantages of Digital Trading to a Business Costs associated with the design, maintenance and updating of the website New staff with expertise in this area may need to be appointed or existing staff retrained – all of which adds to costs Technical difficulties can lead to a poor corporate image Security concerns can be a problem, especially when dealing with people’s money or personal details Costs will be incurred through the delivery of goods to customers Adds additional legal and security issues Increase the level of competition faced by the business Images © thinkstockphotos.co.uk

Advantages of Digital Trading to Customers can shop from the comfort of their own homes can shop at a time convenient to them – 24/7/365 have their products delivered without the inconvenience of visiting a shop can access important information, eg price comparison, online reviews may benefit from lower prices due to reduced costs placed on the business Images © thinkstockphotos.co.uk

Disadvantages of Digital Trading to Customers Details on website may be inaccurate, eg stock levels/contact details Not all customers may have access to a computer or the Internet, or indeed have the necessary skills to navigate it Orders placed can be difficult to change if the customer makes an error while ordering There is the possibility of being defrauded if the website is not secure On secure websites credit card or personal details could be intercepted There will be a time delay between ordering the item and the delivery of it, this can also be expensive Reliance on technology functioning properly Loss of social interaction Products may appear different on the website, meaning goods will have to be returned and postage costs paid Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Pupil Activity Working individually you have twenty minutes to answer the following past paper questions: 2011 Question 1f i 2012 Question 2e 2015 Question 1e 2016 Question 3e & f Images © thinkstockphotos.co.uk

Learning Check Can you: define the term digital trading analyse and evaluate digital trading for a business and customers Images © thinkstockphotos.co.uk