E-COMMERCE Lesson Note
This SS1 COMMERCE lesson note covers E-COMMERCE for First Term, Week 3.
Learning Objectives
- By the end of the lesson, students should be able to:
- Define e-commerce.
- Explain the meaning of e-commerce in relation to commerce.
- State the advantages of e-commerce.
- Explain the disadvantages of e-commerce.
- Identify factors that promote the growth of e-commerce.
Lesson Note
A. MEANING/DEFINITION OF E-COMMERCE
E-commerce (Electronic Commerce) refers to the buying and selling and exchange of goods and services over computer network such as the Internet through which transactions or terms of sale are performed electronically
B. DIFFERENCES BETWEEN E-COMMERCE AND COMMERCE
Commerce involves all activities connected with the distribution and exchange of goods and services from producers to final consumers.
E-commerce is a modern method of carrying out some of these commercial activities through electronic means.
C. DIVISION OF E-COMMERCE
E- retailing this refers to the place in the internet where direct retail shopping is done
E-mail and fax: this are the media for reaching prospective customers
Electronic data interchange: this is the exchange of data between one business and another
The use of web: this involves the gathering and use of demographic data through web contact and social media
Online market places: this involves the buying and selling of goods and services online
D. ADVANTAGES OF E-COMMERCE
1. Convenience
Customers can buy goods and services from home or other convenient locations without visiting a physical shop.
2. Wider recognition
A seller can reach customers in different cities, states and countries through the Internet.
3. Reduction in Operating Costs
Online businesses may spend less on shop rent, decoration and some other operating expenses.
4. Easy Comparison of Prices
Customers can compare the prices and features of products offered by different sellers before making a purchase.
5. easy Communication
Buyers and sellers can communicate quickly through email, websites, social media and messaging platforms.
E. DISADVANTAGES OF E-COMMERCE
1. Internet Fraud
Customers and businesses may become victims of online scams, fake websites and fraudulent transactions.
2. Goods may not meet consumers satisfaction:
Customers cannot physically examine or test some products before purchasing them.
3. Delivery Problems
Goods may be delayed, lost or delivered to the wrong location.
4. Cybersecurity Risks
Personal and financial information may be exposed through hacking or other cyberattacks.
5. Staff reduction:
Increased automation and online trading can reduce the need for certain traditional retail jobs.
F. FACTORS THAT PROMOTE THE GROWTH OF E-COMMERCE
1. Add value to customer: this will help in selling or buying goods with ease
2. Focus on marketing: it is important to focus and develop the marketing of ur product
3. Ensure specialization it is important to specialize on a particular product because it help you to concentrate on your marketing efforts more effectively
4. Avoid fear and uncertainty: make your research evaluate your options and move forward
5. Growth of Social Media
Social media platforms provide businesses with opportunities to advertise and sell their products to potential customers.
Evaluation
OBJECTIVE QUESTIONS
1. What is E-Commerce?
A. Buying and selling only in a physical market
B. Buying and selling of goods and services through electronic networks
C. Production of goods in factories
D. Transportation of goods by road
2. Which of the following is a form of E-Commerce?
A. Online shopping
B. Road transportation
C. Warehousing
D. Physical inspection of goods
3. Which of the following is an advantage of E-Commerce?
A. Internet fraud
B. Delivery delays
C. Convenience of shopping
D. Cybercrime
4. One major advantage of E-Commerce is that it enables customers to ______.
A. shop only during market hours
B. compare prices easily
C. avoid all payment methods
D. physically inspect every product before purchase
5. Which of the following is a disadvantage of E-Commerce?
A. Wider market
B. Saves time
C. Internet fraud
D. Convenience
6. Which of the following promotes the growth of E-Commerce?
A. Poor Internet connection
B. Increased access to the Internet
C. Lack of smartphones
D. Poor delivery services
7. Online banking is an example of ______.
A. E-Commerce
B. barter system
C. traditional commerce only
D. direct production
8. Which of the following has contributed to the growth of E-Commerce?
A. Increased use of smartphones
B. Lack of electronic payment systems
C. Poor telecommunication services
D. Low digital literacy
9. Which of the following is NOT an advantage of E-Commerce?
A. Wider market
B. 24-hour availability
C. Easy communication
D. Risk of cybercrime
10. Which of the following is a factor that promotes the growth of E-Commerce?
A. Improved electronic payment systems
B. Poor Internet access
C. Lack of online advertising
D. Inadequate delivery services
Theory Questions
1a. What is e-commerce?
1b. State five division of e-commerce activities.
1c. Mention five advantages of e-commerce.
2a. State five disadvantages of e-commerce.
2b. Explain five factors that promote the growth of e-commerce.