Understand the effects of e-commerce on society Social Implications

The e-commerce revolution has changed business practices around the world and traditional retailers have had to learn how best to operate in the new faceless global market. One area where established brands have had an advantage is in trust and existing customer relationships. Customers need to trust the e-commerce site and see the advantages of buying through them.

Changing customer perspective The main issue with e-commerce is the customer's perception of online trading. Scare stories in the media warn potential customers about identity theft, items not being delivered and other reasons not to trust buying on line. A site should attract more customers if it promises: • Value - not just offering lower prices than high street stores, but also products that are not available elsewhere • Service - the majority of websites offer a 24-hour delivery time for a small additional cost • Ease - open 24/7 and accessible from home, e-commerce is relatively effortless for the customer; customers may find it is easier to locate products using a website's search facilities rather than searching in a physical store • Security - there are a number of ways to protect customers and websites should ensure that they adopt these to reassure their customers .

Economic and social impact due to speed of changes With the rise of e-commerce threatening traditional businesses, there is an issue for people who do not have Internet access. More remote are Internet users who can only use dial-up (56K), as broadband is not available where they live. For these people, e-commerce is not always an effective alternative to traditional shopping. In addition, families on low incomes may not be able to afford to buy a computer, or pay a monthly subscription for Internet access or broadband, meaning that they cannot benefit from the lower prices of e-commerce. This is called the social divide.

Bricks and clicks' organisations By bringing together the high street and the virtual world, 'bricks and clicks' organisations are changing the face of shopping. Whereas in the times before e-commerce people had to go physically to the high street to buy the products they wanted, they can now buy these products from their own home, with all the inherent benefits and drawbacks discussed below. It has resulted in changes to the way business is done, to patterns of customer behaviour and to the businesses which exist in our high streets. it could be argued that the introduction and rise in popularity of e-commerce has been the single most radical change to business in the last century.

Benefits for customers Remote shopping means that customers do not need to leave their house in order to make their purchases. This is a valuable feature fore-commerce customers who live in remote places or find it difficult to travel to their local towns or shopping centres, such as those who do not drive. lt also allows people who are housebound access to a huge variety of goods and services. Where they may have previously had to rely on other people to do their shopping, they are now empowered to shop for themselves on line, giving them independence. By being able to buy products and services 24/7, customers can access the sites, browse and buy at any time. This especially benefits people whose jobs do not fit into the normal routine and allow them to get to high street shops during normal times or at weekends such as shift workers and those in public services, such as nurses, firefighters and police officers .

A popular benefit is that online stores can usually offer goods at a lower price than can be found on the high street, as they do not have to pay for rent, utilities and staff for the physical store . Although customers need to pay for postage and packing, which can sometimes be high, in general purchasing from e-commerce sites is often cheaper than the high street. Being able to search for products can be of huge advantage, especially if looking for products in a hurry. The facility to search for a particular product then find the lowest price (or sort the findings by other categories such as customer reviews) is provided by a number of sites, including Google, and can be invaluable to customers.

Drawbacks for customers One of the toughest hurdles that e-commerce businesses have to overcome is to prove that they can be trusted. Customers can be fearful of inputting their personal and financial details into a website, worried that they may not receive the goods they have purchased or they may be the victim of identity theft . Buying a product without being able to inspect it can also be a deterrent to customers purchasing on line. This is less of a problem with standard products, such as electrical goods, but with items which are more individual, such as clothes and food, customers often prefer to see the product in real life before paying for it.

Impact on customers lt is often said that 'the world is getting smaller', and this is mainly due to the advance of technology. Communication is easier and contact can be made with anyone anywhere in the world in seconds . By trading online, businesses open themselves up to the global marketplace. Previously, it might have taken months, even years, to break into foreign or niche markets. E-commerce has allowed instant penetration into all marketplaces. In contrast, there are challenges that accompany the increase of e-commerce that are advantages for customers while being drawbacks to smaller businesses . For example , as discussed above traditional booksellers are facing huge competition from online booksellers such as Amazon . As pure e-commerce businesses can offer the same products as traditional stores at lower prices, as well as offering other benefits, traditional stores must change their methods of business and advertising to remain competitive and profitable.

E-commerce and high street employment As more businesses begin to trade online, there is an effect on employment opportunities. As traditional stores close, workers cannot gain employment in a similar field. E-commerce favours those with IT training. Additionally, as e-commerce businesses can be run from small locations, shop rent prices may fall due to fewer businesses buying or renting store premises or warehousing . These issues could have a significant effect on the economy.