Commercial Operations: Retailing: Effects Of Ecommerce On Traditional Commerce (Copy)
Cheat Sheet: 3.4 Effects of E-commerce on Traditional Commerce
| Impact Type | Effect | Explanation | Example |
|---|---|---|---|
| Positive | 24/7 Selling Opportunities | Customers can shop anytime | Amazon open round the clock |
| More Potential Customers | Wider global reach beyond local markets | Daraz serving buyers across Pakistan | |
| Increased Revenue | More sales channels increase total sales | Retailers selling both in-store & online | |
| Targeted Marketing | Digital ads reach specific customer groups | Facebook/Instagram ads for clothing | |
| Reduced Operating Costs | Less need for physical stores | Online-only retailers avoiding rent |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Impact Type | Effect | Explanation | Example |
|---|---|---|---|
| Negative | Increased Costs | Expenses on delivery, staff training, IT systems | Hiring couriers, training employees |
| Larger Warehousing Needs | Need storage for online orders | Amazon building fulfilment centres | |
| Website Maintenance | Ongoing technical costs | Shopify store monthly fees | |
| Security Concerns | Risk of fraud, hacking, data leaks | Online payment fraud cases |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Balance of Impact | Explanation |
|---|---|
| Positive Impacts | Expand market, boost revenue, reduce reliance on physical stores |
| Negative Impacts | Raise operational costs, create technical and security challenges |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Summary | Key Idea |
|---|---|
| E-commerce strengthens traditional commerce with global reach, revenue growth, and efficiency. | |
| But it also increases costs, warehousing needs, and technical challenges. Businesses must balance both to stay competitive. |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course