Essay
Unit 8 - P5 - Social Implications of Ecommerce
This is P5 of Unit 8 - E-commerce, this covers the social implications and impacts that ecommerce has compared to traditional brick stores.
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There are many social implications created by Ecommerce, as in the way online shopping has changed the waythat society shops, spends, and uses the internet. First of all, E-commerce is 24/7 – this allows people to buy
from online stores at whatever time they want. This is a positive effect for those who struggle to find time to go
to the traditional shops till the weekend, or they are not on a usual work schedule; in turn this means the store
will make more profit due to always being open. As well as always 24/7 access, the store can be accessed from
anywhere in the world, with a computer that has internet. A global audience allows the company to gain
costumers and popularity from all over the world, instead of the territory of a brick store which only attracts
consumers that live locally. The impact of purchasing online is that the public get to order from the comfort of
their own homes – this is beneficial not only to those looking to create more time but for the housebound, the
people who may not be able to leave their homes easily such as the elderly or those with a disability.
Shopping online also means there will be added value to promote the site over store method, such as it being
easy to view all of a company’s goods on a single webpage and by using a search bar, instead of manually
looking through a store or asking for assistance, while websites also stock a lot more merchandise. Along with a
greater variety, online stores usually have more offers and discounts to promote the site and to make
customers return as well as having exclusive products that are not in shops or on other sites. As the internet is
all in one place, the competition is stronger because consumers can easily compare prices and go for the better
offer. Which may or may not work in the company’s favour with fluid pricing, this means to increase or
decrease prices quickly for different circumstances such as an item not selling well – they can decrease the
price or increase if it is selling out. Customers have to create an account (or at least a guest account), the
account not only stores their details so they can purchase quicker in future, but tracks what they buy and look
at so that they site can personalise webpages for their experience which can increase sales and makes
customers feel more welcome/loyal to the store which brick stores cannot do. Finally, online shopping grants
the ability to be able to pre-order products that are yet to be released, so that customers can get them on the
release date and makes sure the store does not run out of stock. On the other hand, this makes brick stores
become less popular, which could affect the public in a few negative ways.
The negative impacts of 24/7 global access to shopping include employment - traditional stores require staff to
stock and make sales in various stores across the country, however a click store may not need anyone at all
except for temporary updating and maintenance so IT skills have become a necessity in most jobs; This loss of
available jobs contributes to unemployment numbers. Not having to walk to the shops and supermarkets may
mean less exercise for some who don’t get enough already, and simply not getting out can cause other health
issues in individuals such as an elderly person becoming lonely at home due to lack of communication or simply
not getting enough sunlight depending on individual circumstances. Another negative is the owners of brick
stores that have no click counterpart are at a huge disadvantage, they lose out on a massive audience due to
being limited to their area and not home delivering their goods, while stores that go online have a competitive
edge. Items that are not digital (unlike Green Ronin’s game) and can’t be downloaded right away, many people
like to view physical merchandise (not usually games) in person especially clothes, but this is not necessarily an
issue for a game store and their target audience. Also, ordering physical items means having to wait for the
delivery while buying from a brick store would give the buyer the item instantly, this means they have to wait
the standard 3 working days delivery time (which can be late or damaged) or pay extra for next day delivery.
The most important concern for customers purchasing online is the security of the site, customers must be able
to trust the website with their financial details by having a good reputation, security measures, and verification
such as a padlock on the site’s web address. Some members of society still do not use e-commerce sites due to
not trusting them, especially older members of the public who do not have IT knowledge so they can’t tell the
difference between safe and dangerous sites or simply operate sites. The media coverage of identity theft and
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