Business Studies E-Commerce
For first teaching from September 2009 For first award in Summer 2011

GCSE

E -Commerce At the end of this unit students should be able to:  Explain what is meant by e-commerce and e-business;  Analyse the advantages of e-commerce for customers and businesses;  Analyse the disadvantages of e-commerce for customers and businesses; and  Discuss how e-commerce supports international business. Setting the scene: Amazon.com was founded in Seattle, Washington by Jeff Bezos in 1994, and was officially launched in 1995. It started out as an online bookstore but quickly diversified by adding other items, such as DVDs, music CDs, software, video games, electronics, MP3s, clothing, furniture, toys and even food items. Amazon.com grew rapidly throughout the late 90’s, and managed to survive what became known as the dot com crash. Amazon.com has become one of the world’s largest on-line retailers with almost 25,000 employees and global sales in excess of $24 billion per year. The company continues to go from strength and is currently the UK favourite on-line retailer and third favourite retailer overall. The impact of ICT on business Developments in information and communications technology have fundamentally changed the way businesses sell and distribute their goods and services. New technology such as the internet and broadband has opened up a whole new world of opportunities for business. The amount of trade conducted electronically has grown dramatically in the UK in recent years with over £100 billion worth of goods and services being traded electronically each year. Most firms in the UK (almost 70%) have their own website, and while many of these firms do not use this site to sell their products (only 15% have a full e-commerce site) they can use the internet to support other aspects of their business. E-commerce and E-business The