unit 4 digital trading

Question 1

Digital Trading

Answer 1

Digital trading refers to ordering, buying, selling
and paying for products and services using the
internet. Marketing of goods and services over
the Internet.

Question 2

Advantages of Digital Trading to a Business

Answer 2

 An effective website will give the business a professional image.
 Provides access to a global market.

Question 3

Disadvantages of Digital Trading to a Business

Answer 3

 Costs associated with the design,
maintenance and updating of the website.
 New staff with expertise in this area may
need to be appointed or existing staff
retrained – all of which adds to costs.

Question 4

Advantages of Digital Trading to Customers

Answer 4

 Can shop from the comfort of their own
homes.
 Can shop at a time convenient to them
– 24/7/365.

Question 5

Disadvantages of Digital Trading to Customers

Answer 5

 Details on website may be inaccurate, e.g. stock levels/contact details.
 Not all customers may have access to a computer or the Internet, or
indeed have the necessary skills to navigate it.