Merit 1 Analyse the advantages to an existing business of doing business online.
IntroductionIn the 2000s internet was being used more by people as it was hard to access and expensive for business, business were not able to have an business online as there was not a lot of experts capable to create websites, servers etc.In the 2002-till now. Internet has become a focal point for business as that helps them to their jobs easily for example amazon can get their payments on time as they get the money straight away after the customer purchase the product or service. By having a online business will help you to increase profit and also you could become a well known business around the world.It’s not expensive to start an online business (cost savings).Starting a online business does not cost you a lot as the tools you need to create a online store is something everyone could do for example Amazon started to work with a book supplier that was already online.By being a online business, businesses do not have to have a high street shop as that will add up extra cost by being a online business they only have to worry about packaging,delivery, warehouse and hq costs.
Because they don’t have high street shop they can start expanding and become dominant in different industries for example amazon has bought twitch and recently bought whole foods in America to make more profit for the business as they can use all of the money to invest in new projects M1or current projects that are unknown to the public. Marketing is also free. As Amazon is a well known business so marketing would be easy for them to market as they do not have to do a lot to get their new products or services known.
As promoting on social media is free there are additional costs for the business to be known for example amazon has push tweets that I can see on my feed as a ad.This shows that marketing is not free as their will be always a cost of producing the ad, planning the ad or sending it out. Otherwise the message for their new product or sales will be neglected by most people as they did not see any advertisements for it for example amazon advertised a lot when they released amazon echo. You can sell while you sleep (24/7 flexibility).The site can be used 24/7 without any heavy maintenance as it does not need constant updates by the web developers. Even if they did a update on the site it doesn’t need to be shut down as they can do it while customers are purchasing products or using their services on amazon.By being online 24/7 amazon makes profit 24 hours as they just keep on selling till the stock runs out.
Amazon is online 24/7 that makes it convenient for busy people as they can order what they need at any time of the day. There are no borders to online business (customers).They are able to give their services to every customer around the globe along the country has not banned their services in there country.Amazon is almost accessible everywhere around the world.
This benefits the amazon as they can get more money from different countries and also help the fight against global warming as they are able to deliver all of their products to your doorstep.Online business is also environment-friendly (less waste).As they are a online business customers do not have to go to high street shops with their car because of that it helps the fight against global warming.
Customer won’t be able to get plastic bags everyday as that would be hard to recycle. It’s easy to track what works and what doesn’t (research).Amazon can track what product they want the most and what service they use. They can also find out what they dislike and what they need to adjust the price for. Because of this amazon can do market research easily as they can figure out what areas they need to improve and adjust to the customer’s preference.
It’s cheap and easy to keep in touch with customers.Amazon sends an email every 2 days to inform you with sales or discounts on certain services and products.As the emails are automated it does not cost a lot of money to them.
They also send you emails with details from the product you bought as that is a receipt you should keep till you get your product that is one of the ways to keep in touch with customers.Some online business give you a discount code if you have not used their website for a long time for example Ebay.Manage your business from anywhere in the world.Online business are manageable from anywhere in the world as they can get their work done on a computer,laptop even a phone as long they can connect to the internet. They move around freely and create new partnerships in other countries, for example Amazon recently expanded to Australia so that they can use their service easier.Financial transactions are much easier and faster.Online business can do online transactions much easier as they do not have to wait for a long time to receive the money.
It is convenient for customers as it fast and secure their payment get authorized 24/7 and the funds will be transferred straight away. Paypal allows customer to fast and secure.Customers do not have to stay in a que to purchase a item but their some exceptions for example hyped up sneakers can only be bought through a que or a raffle to make it fair by doing this,this creates maximum profit for the businesses as they are ensured to make profit from those products for example adidas release limited clothings/shoes every 3 months to keep them self relevant that is some sort of free advertising as it is spreads around the internet and people that are in the industry. On amazon they have a buy now option that will check out straight away if you are logged in and have all your details/card details saved on the website.It is a bit risky as someone can hack your account and use some of the credit details to do some dodgy things. Advantages to your customers.As Amazon is a online business it saves the customer’s time if they are busy they can order whatever they need at any time of the day that means that amazon makes profit 24/7 and that is good for them as they can operate the business in different countries with different time zones and different products meaning that they can can get more customers around the world .
Recently amazon opened in Australia meaning that customers were able to use their time for different things M1 a they did not have to travel for ages to get a cart full of food. Because of this customers in Australia are helping to reduce global warming. Customers can use the website easily as it is not cluttered with information, it specify says shop by department meaning that you can choose the right department you want to purchase from.
This gives the user a clear experience of the company and how they value their customers because of this customers are not likely to sway away from their website online as it is easy to use for them.Also because their website is easy to use it gives them the edge over their competitors M1 and would help them to advertise their websites with ease. A online business can help customers with any issues they have with a certain product for example amazon has a section dedicated to customer service because they have section dedicated to helping the customers they can contact in 4 different ways to talk to them about their order,payment or shipping issue. By having such a range of help customers will feel valued as they will go as fast as they can to fix the issue for you.
M1 Someone major online business their customer service is horrendous for example Samsung they do not provide any warranty for their own products and would not discount their own price for a phone repair. Customers can look at reviews before buying the product as that will make sure it will fit their needs. Because of doing that amazon knows what to advertise more and what they are going to need more stock M1 for as it is rated by a lot of people.But some products customers reviewed could be rated badly as maybe the product comes in damaged Online business can send the products at any time stamp the customer wants and the online business can give access to the their services immediately after is it payed for example amazon has amazon prime after you paid for the subscription you can use is straightaway.
Employees can work from home.This will let employees spend more time with their familiesM1 as they can do work whenever they want during day. However, Amazon does only lets call center employees work from as their necessarily tools are a computer that can connect to the internet.
The board of directors could go to different countries to make deals for his or her company M1as they will be able to do their work everywhere as long they can connect to the internet.