E-commerce

Online shopping
Examples include:

 

1. Online supermarkets e.g. Sainsbury's.
2. Other online retail companies e.g. Game or Amazon.
   
3. Online auctioning.
4. Online banking.

Online shopping now has seen companies expanding onto the internet through a process known as the 'brick and click'. The brick is the actual shop of the company and the click is the online experience of the shop. Since the establishment of the internet companies have seek ways to expand their company to generate more profit. Most major retail companies now have some form of an online shopping experience for customers to buy their products in a variety of different ways. However the online shopping experience is not always what it appears to be. In addition to that when you hear about online banking for instance you hear the words fraud, identity theft, too high security, so we can safely safe both methods of commerce.

Statistics

1. The highest percentage of online shopping in the world is found in South Korea with a staggering 99%.
2. The most shopped goods online are books with a percentage of 41%.
   Statistics from www.multilingual-search.com/world-statistics-on-the...of.../2008

Advantages of actually going to the shop

1. The main benefit you get from visiting a shop is you have the ability to try out a product e.g. you can try out a piece of clothing in a shop compared to online where unless you know the exact measurements for you waist/height it is very difficult to purchase an item and could result in having to send the product back to the company.
   
    
2. By going to a shop there are no high postage and packaging costs. If there are two products together and you compared them one if valued at £3.99(online) and another is valued at £5.99(shop), but the online product has a postage and packaging cost of £3.99 that product becomes more expensive than in the shop. The only requirements are for you as a customer to go to the shop and pay for the product/s.
   
    
3. When you go to a shop you don't have to wait to receive the product/s. Sometimes waiting for a product to be delivered can be frustration and in some cases the item needs to be delivered quickly as it is very urgent e.g. buying a school text book online to do schoolwork of it. Some companies like Amazon take up to 2 days to dispatch a product so buying a product in store is good if you want the product as quick as possibly.

This screenshot is an example of being able to compare items on online shopping, for example there  are two products at the top both have 5 star ratings but one is cheaper so I’d be more likely to buy from that person than the one below it.

 

4) In a shop you can pay for cash. Paying by cash is quick unlike paying by card when you have to enter your account details which is time consuming to not only to enter the details but to also process those details, with cash you only have to hand over the money and sign the receipt.
5)  Another benefit from going to the shop is that it gives you something to talk about. Most people like to organise a day out with friends by going to the shops, so that social benefit of going to the shops can increase business when friends might recommend something to you.

 

Advantages of online shopping a.k.a. disadvantages to going to the shops

1) With online shopping there is no travelling which means that fuel is saved with that saving money. As our economy is bad at the moment saving money in places is quite vital so having online shopping allows us to prosper better. In addition to that as many complain about the high fuel costs associated with supplying our modes of transport, online transport is the answer to our issues and so through that is becoming a very effective system for us to use.

This screenshot is an example of the high postage and packaging costs associate with buying online.

2) With online shopping there a no queuing involved. A lot of people seem to complain about the lengths of queues all the time so this way of purchasing items is a way to satisfy our needs. When you purchase products from a shop you will usually find there is a queue especially on very busy days this can cause for us as the customer to lose our interest in what we are buying and overall come to the assumption that we have received bad customer service. With online shopping purchasing requires a few clicks and the item has been bought.

3) With online shopping you have the ability to compare items side by side or one after the other. This is a very efficient system as when you want to buy something from a shop to compare prices you will find that you mostly have to travel between shops to look at the item which is relatively annoying. With online shopping that ability to compare items makes it easy for the customer to check individual prices and condition of items creation an impression that online shopping is a more efficient way of buying products than going to shops.

This screenshot is an example of being able to compare items on online shopping, for example there are two products at the top both have 5 star ratings but one is cheaper so I'd be more likely to buy from that person than the one below it.

4) On online shopping you may tend to find that shops can offer a might wider range of goods than that of in the high street shop/supermarket. Because online there is a much wider variety of a goods customer now have the ability to purchase items they wouldn't normally buy off those company e.g. electrical goods from a supermarket like laptops for example.

5) With online shopping you may notice that there are reviews against a seller's name. This is an advantage as if you had the same product with the same price and condition one has a rating of 98% and the other 99% you can choose what person will most likely send you the item quickly and efficiently. Also from a seller's point of view that rating turns into how much business you will most likely generate.

A few disadvantages of online shopping

1) With online shopping there is usually a high postage and packaging cost associated with the item which compared to a normal shopping experience isn't the case at all.

This screenshot is an example of the high postage and packaging costs associate with buying online.

2) Online shopping particularly from a source you are unfamiliar with can result in fraud and the taking of your details for another person's gain, it is very important to know the source before you give out your details as it can compromise the whole of your security and identity.

3)Online shopping usually means that when you purchase an item you will find that you have to wait several days before it is delivered to your address which can be very inconvenient if the item you're a purchasing is needed urgently.

Screenshot shows that online shopping with a normal delivery can take up 5 days to deliver quite a long time if you want the item delivered quick but even that costs as you have to pay a few to get the item delivered more quickly.

4) Shopping online can be quite hard if you aren't familiar with using it or in some cases have no real experience of using a computer. Because of this it can result in you having to actually go to the shops to purchase a product.

My experiences of online shopping

My experiences of online shopping from a buyer's point of view can be described as excellent, I don't have too many problems with using the site and particularly with sites such as Amazon, and I can sometimes get a product with no postage and packaging costs and in brand new condition. I agree that waiting for an item to be delivered can be very annoying which is my main criticism of online shopping but in general I find that it is a very efficient system that involves a very small cost and I can sometimes get a product cheaper than that from a shop.

This is an example that you can search for a new item and buy the item without having to pay for postage and packaging costs. I would recommend that as postage and packaging costs tend to be high you should look for free postage and packaging that is also new to be fully satisfied with your purchase.

 

If a company has a shop on the high street for example and has a website that allows customers to purchase from it can for the company generate more profit for the company as their company image is expanded worldwide and can be seen by anyone in the world. Also if the company has a website as well as a shop the professional standards of service that are used in the shop can be applied to the website to give customers the best possible customer service which is going to result in possible repeat business for the company.

Online banking
When banking we know have the means we can access our accounts not only by a high-street branch but also by the banks online banking system. There are some companies that are solely internet based e.g. Amazon. Most major banking companies now operate online as well as having a branch on the local high street meaning we now have more control over our accounts than we did have ever had before.

Advantages of online banking
Rapid-online banking means that we can access our accounts and withdraw money, put in money and transfer money between accounts very quickly with just a few clicks. Being a rapid system online banking means that we can transfer money between accounts to pay upcoming bills and other expenditure quickly and effectively. Because online banking is now used widely amongst customers because we don't have to go to the nearest banking branch to pay bills, cash in cheques, put in money or even withdraw money which ultimately saves us time and increases our leisure opportunities.
No queuing- because there is no queuing with online banking we have the ability to access our accounts without having to queue up in a branch. Because of this we don't have to spend time to queue up at a branch which saves us time to carry on doing our day to day activities. Sometimes you may find that if you are shopping you have to pay to park. Because of this, when you queue you are wasting that time and will most likely find that you will have to pay for another ticket to avoid a parking fine. WaMu an online banking system. This screenshot shows that accessing your account requires no queues and it constantly updates according to the funds you currently have in your bank.

 

Storing of details- Sometimes you may find that your online banking system requires additional security measures to protect your account. For example Santander has introduced a new way of protecting your account by you having to type in a new phrase and a picture. This is stored on the bank's database and every time you enter your details you are shown your phrase and your picture to ensure your account hasn't been hacked in anyway. For some this method is annoying because you have to type in additional information; however it is an advantage to you as this ensures that your account has the best possible protection.

This is a picture of Santander's online security software which means when downloaded your account is more secure than ever ensuring your personal details are safe along with any money you have currently in your bank.
Flexibility – With online banking we can access our personal accounts at any time including bank holidays /public holidays like Christmas for instant. Because we can access our accounts at anytime we can withdraw money even though that bank's branch may be closed and set up direct debits and standing orders with just a few clicks without the time consumption of going to a branch or phoning up that company to set this up.
Disadvantages of online banking


Typing in of information- If you have used online banking you have probably found that when asked for your details whether its card details/name of holder for example that you have to repeat the process of retyping in information to make sure your account is safe. For me that is a very annoying process because its time consuming when all I wish to do is access my account to pay a few bills for example. And yes you may argue that it is for added security measures for your benefit but if you are in a hurry to get to work or are shopping for example it's annoying and frustrating when you've already typed in the relevant information.
This screenshot is an example of the time consumption that is associated with online banking systems whereby we have to retype information we have previously typed in or even having to other tasks like saving our card details for example.

Mistakes- It's very easy to make a mistake on the online banking system if you have no knowledge of what you are doing or just make the often silky mistake of typing in the wrong fund transferring information for example. Also often if you haven't wrote down what your password is you are most likely going to forget it and with that are going to have to spend quite a long time resetting your security measures just to access your account. Overall what we can conclude from this is if a mistake is made it requires a lengthy process to re-amend the mistake.
Customer service- With online banking now there is no relationship between the customer and the bank. When online banking wasn't around you could ask the accountant what exactly could required and they could do it relatively quickly. You could feel as the customer that you have received good customer service unlike online banking where the assistance is very minute.
My experiences of online banking
In don't actually use online banking but I know a wide population of the people do. Many people have stated the issues and pros of online banking most of what I have discussed above but overall giving off the impression that it was a very good system that encouraged more leisure time as the time you spend banking is decreased quite significantly despite if you make a mistake which is rare as a lot of users are fairly careful about what they type in and therefore proof read the information which the bank system allows you to do before you proceed.
Online auctioning
The most notables of all the online auctioning is Ebay which is going to be the main focal point for discussion during this section of E-commerce.
Online auctioning
Online auctioning is basically when we can bid for items posted by other people to win our right to that item. With online auctioning you have to usually outbid other person which means rasing the price of an item at your own expense.
Advantages of online auctioning
1) Ratings Online auctions allows us to view a seller's reputation of selling online. This is a useful; advantage as it allows us a customer to decide if we are going to bid for that item based on others buyers thoughts on their purchase. The better the reputation is the more likely we will bid for that item as we can guarantee ourselves that that purchase will be efficient as quick as possible without any external factors affecting the deal. An example is if there was an item for bidding two were exactly the same price, condition and make but one seller's reputation was 90% positive but the other was 97% positive we would be more likely to go for the better reputable seller, so this method guides us in our purchasing.
This picture is an example of EBay's reputation system. As you can see it shows how many people thought positively about their purchase and the selection of people who were disappointed with the service they received.

Satisfaction of outbidding/getting an item cheaper- sometimes as a bidder you may get that internal sense of satisfaction of outbidding someone for an item. This encourages healthy competition between individuals to see who the best bidder/buyer among a group is. Also as a buyer I find that sometimes when I bid at the last second for an item 9 out of 10 times I will get that item cheaper than the recommended retail price. Because of this many people will bid for an item because it keeps them involved/entertained and they will hopefully get the item cheaper than expected by the seller.
This picture is an example of outbidding someone; it represents an internal satisfaction and provides a good laugh for when you do outbid someone.

Ubiquitous- Ebay provides something to talk about between the population. Many people do sometimes find it hard to think of something to say so EBay is providing the means for a conversation to occur between individuals which can lead to people making recommendations to use Ebay as their number one place to shop/auction. Because it is ubiquitous it makes Ebay better known and so for Ebay it makes their reputation better and so they will generate more money as people use their system when selling. Also as more people are using Ebay through conversations Ebay can recommend items to users which will generate more money for them as the customers view that item/choose to buy it.
Disadvantages of online auctioning

 Outbidding- to counter argument that statement I made about outbidding, I also find that when being outbid by someone that is highly frustrating and will from my personal view point encourage me never to use the system again. Also when competing a bidding war can occur which can cause unfriendly relations between individuals and for example when one person is selling they may refuse to give that item to the person that outbid them unfair? Yes it is but it can occur.This picture is an example of the annoyance of being outbid by someone.

Trust- Trust for many people can be quite a big thing, we have been told by many to not trust strangers and Ebay is no exception. For example when you have won an auction sometimes it has been reported that the seller has taken the money but not given the goods. So for a user of Ebay is it highly important that you use the reputation system wisely before bidding just to get a feel for what the seller is offering. So the overall question is can you really trust the seller just because they say the item is also in good condition/real and not a fake?

Security risks when paying- It has been reported by many users that transactions have resulted in fraud. Users are advised that you pay through PayPal which is a secure payment system. Before you make a purchase you should ensure that you refer to the ratings system and check any negative comments by other buyers to make sure your purchase is going to be safe.
My experiences of online auctioning- my experiences of online auctioning are mixed. I fell that this system will soon be over token by Amazon because I feel that the customer service you get with Amazon is better and you don't have to go through the process of bidding for an item which saves a whole load of precious time. Amazon's transactions when paying are far quicker and are less likely to result in fraud so I'd be more inclined to use Amazon than Ebay. However looking at the positives from what I have brought of Ebay I was happy with all the purchases even if they were limited and I thought that the system was generally a good system despite all teh negatives I have mentioned.