buying and selling over the internet. The trade takes place online.

Which is an opportunity of e-commerce for a business?

access to customers worldwide. A website can be visited from anywhere.

Which is a threat of e-commerce to a business?

customers can easily compare its prices with competitors'. Comparison is a click away, so competition is fiercer.

Which is a disadvantage of online shopping for a consumer?

goods cannot be examined before buying. The customer sees only a picture and a description.

How does e-commerce affect where a business locates?

It does not need to be close to its customers. Orders arrive online and goods are delivered.

E-commerce · Cambridge IGCSE Business Studies 0450 revision

In plain words

E-commerce is buying and selling over the internet. A business with a website can be open all day and all night, to customers anywhere in the world, without a single shop.

It has changed what businesses can do, and what they are up against.

5 things to know

E-commerce is the buying and selling of goods and services using the internet.
Opportunities for businesses: a worldwide market, selling 24 hours a day, lower costs with no shops to run, and information collected about customers.
Threats to businesses: customers can compare prices instantly so competition is greater, a website and delivery have to be paid for, and there is a risk of fraud and hacking.
For consumers: convenience, wide choice and lower prices, against not being able to see or try goods, waiting for delivery, and worries about security.
It affects location: a business selling online need not be near its customers, and may not need a shop at all.

Tips and tricks

Give both sides for a named group. An opportunity for a small online seller, a worldwide market, is a threat to a local shop.
"24/7" and "worldwide" are the two big opportunities. Delivery costs and returns are the practical drawbacks.

5 questions, about 2 minutes.

It lands in your notebook with its questions as flashcards.

E-commerce: 5 questions and answers

These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.

E-commerce is
- selling only to other businesses
- buying and selling over the internet (the answer)
- advertising on television
- a type of market research
The trade takes place online.
Which is an opportunity of e-commerce for a business?
- more local competition only
- access to customers worldwide (the answer)
- higher rent for shops
- shorter opening hours
A website can be visited from anywhere.
Which is a threat of e-commerce to a business?
- lower costs
- customers can easily compare its prices with competitors' (the answer)
- more information about customers
- longer opening hours
Comparison is a click away, so competition is fiercer.
Which is a disadvantage of online shopping for a consumer?
- wide choice
- shopping at any time
- goods cannot be examined before buying (the answer)
- lower prices
The customer sees only a picture and a description.
How does e-commerce affect where a business locates?
- It must be in a city centre.
- It does not need to be close to its customers. (the answer)
- It must be next to its competitors.
- It cannot have a warehouse.
Orders arrive online and goods are delivered.

5 questions

Tap an answer and you’ll see straight away whether it’s right, and why.

Worksheet

3 questions, 8 marks. Write your answers on paper, then check them.

E-commerce

Cambridge IGCSE Business Studies 0450 · 8 marks · papermunch.org

Name ______________________________ Date ______________

Define e-commerce.[2]
Show answerHide answer
The buying and selling of goods and services over the internet.
I got this one
Explain two opportunities e-commerce gives to a small business.[3]
Show answerHide answer
It can sell to customers all over the country or the world, not just those who live nearby. It can keep costs low, because it does not need to rent a shop in an expensive location.
I got this one
Explain two disadvantages to consumers of buying clothes online.[3]
Show answerHide answer
They cannot try the clothes on, so the size or quality may be wrong and items have to be returned. They also have to wait for delivery, and may have to pay for it.
I got this one

Answers: E-commerce

1. The buying and selling of goods and services over the internet.
2. It can sell to customers all over the country or the world, not just those who live nearby. It can keep costs low, because it does not need to rent a shop in an expensive location.
3. They cannot try the clothes on, so the size or quality may be wrong and items have to be returned. They also have to wait for delivery, and may have to pay for it.