E-Commerce – P2/P3 (Partial). Drawbacks. (Lesson 7)

1. E-Commerce – P2/P3 (Partial)

Drawbacks

2. Energiser Activity – Unit 8 e-Commerce (These are terms we will use today – Can you find them and do you know what they are?)

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WORD LIST:
Trust
Contact
Delivery
Laws
Security
Packaging
Payment
Complaints
Spellings

3. Aims & Objectives

Aims & Objectives
Today you will learn and carry out:
RECAP (What did we do last week?)
What benefits of e-Commerce were there? (P2)
Todays Lesson (Drawbacks) P2 & P3 (partial)
• Define the term drawback P2 & P3 (partial)
• List drawbacks to e-Commerce P2 & P3 (partial)
• Individually define each drawback. P2 & P3 (partial)
• Taking it further (Extension Activity):
• How does each drawback impact Groceries 4 U?

4. Task

• In Groups: (We will have approx 6 groups)
• How many drawbacks can you identify to a
company introducing e-Commerce?
This will be a paper based
activity. I do not want you
cheating by using the
internet to find your
answers!!!

5. The Drawbacks

Consumer trust
Lack of human contact
Delivery issues
International legislation
Product description problems
Security issues

6. Task

• Using the same Groups:
• Select a drawback using the whiteboard activity
• How would the drawback your group has
selected impact Groceries 4 U?
• Prepare to feedback your answer to the group

7. Consumer Trust

• Gaining the trust of your customers is
paramount (especially if you don’t have the
potential for face-to-face contact)
• How do companies respond to complaints?
• Will goods actually ever arrive?
• Will my payment details be secure?
• To earn trust, companies must:
– Deliver on time, keep prices low, deal with queries
quickly and effectively, handling complaints

8. Lack of Human Contact

• Lack of human contact
• Suppliers and customers feel remote
• Sole trader may not have contact with outside
world (other than through post or email)
• What are the implications of this?
– Online trader is reliant on themselves (very
stressful)
– Individuals may feel socially isolated

9. Delivery Issues

• Customer may trade with organisation in different
countries
• Involves greater costs in getting good to customers
• Country specific regulation about delivery packaging
• What are the options available?
– Absorb the costs & reduce profits
– Add costs of delivery/packaging to goods & risk the
sale
– Send goods in standard packaging & breaking law

10. International Legislation

• Organisations are now increasingly accessing
global market
• As a result they have to be aware of a growing
number of laws
• The ISO (International Organisation of
Standardisation) was formed to ensure that
issues such as legally defined safety standards,
product standards are set, adhered to &
policed

11. Product Description Problems

• Issues with language and understanding
• When sentences are transferred from one
language to another, something can be lost in
the translation
• In some countries the same words can be
spelled differently, but mean the same thing

12. Task: Think about what these terms mean?

AC
– Alternating Current (UK)
– Air Conditioning (USA)
Chips
– Sliced & fried potatoes (UK)
– Crisps (USA)
ER
– Elizabeth II (UK)
– Emergency Room (USA)
Holiday
– Time taken away from normal routine (UK)
– Public festival (Christmas/Thanksgiving) (USA)

13. Task: Think about what these terms mean?

NHS
– The National Health Service (UK)
– National Historic Site (USA)
Pants
– Underwear (UK)
– Trousers (USA)
Subway
– Pedestrian Underpass (UK)
– Underground Rail Network (USA)
The tube
– Underground Rail Network (UK)
– Television (USA)

14. Different Spellings

UK
USA
Organisation
Organization
Colour
Color
Centre
Center
Analogue
Analog
Theatre
Theater

15. Security Issues

Damaged in transit
Stolen
Lost
Customer information

16. Taking it further

• Taking it further:
• Write a brief report on the below.
• How does each drawback impact Groceries 4
U?

17. Task - Plenary

• Using the guide on the Whiteboard think about
todays lesson and think of the following:
• What did you understand today?
• What were you not sure about?
• What do you want extra help on?