4: Digital Trading

Question 1

What is digital trading

Answer 1

Ordering, buying, selling and paying for products and services using the internet. Marketing of goods and services over the internet

Question 2

What can digital trading be with

Answer 2

Customers
Other Businesses

Question 3

what are some advantages of digital trading to a business

Answer 3

effective website provides professional image
Access to global market
Website information updated quickly
Can lead to lower costs for business
Cost effective way of promoting business to many customers, through search engine listings
Some businesses wont need a high street location. major cost saving

Question 4

Disadvantages of Digital trading to a business

Answer 4

Costs for maintenance and updating website
New staff with experience need to be appointed or training existing staff - adds cost
Technical issues can lead to poor corporate image
Security concerns can be problem especially dealing with people money or personal details
Costs incurred through delivery of goods to customers
Adds additional legal and security issues
Increase level of competition faced by the business

Question 5

Advantages of digital trading for customers

Answer 5

Shop from home
Shop at any time
Products delivered without need for visiting shop
Access important information e.g. price comparison online reviews
may benefit from lower prices due to reduced costs placed on the business

Question 6

Disadvantages of Digital Trading for customers

Answer 6

Details on website may be inaccurate (stock levels/contact details)
Not all customers have access to computer or internet
Orders placed can be difficult to change if error made
Possibility of being defrauded if website isn’t secure
On secure websites credit card of personal details can be intercepted
Time delay between ordering item and delivery of it
Reliance on technology functioning properly
Loss of social interaction
Products can appear different on website meaning goods will have to be returned and postage costs paid