Unit 45-LO1 Examine the strategies employed and the impact of E-Commerce on business organisations-BTEC-HND-Level 4 & 5

Course: Pearson BTEC Levels 4 and 5 Higher Nationals in Business

Businesses have been using the internet to sell their products and services for many years now. E-commerce is important because it allows businesses to reach customers who cannot afford or access products in person. E-commerce also allows companies to gather better data about their customer base than traditional methods of advertising.

Recently, there has been an increase in both cybercrime and online shopping. This is because of the development of e-commerce. Organizations that are interested in using e-commerce should invest time and resources into protecting themselves from fraudsters before trying any other strategy.

Also Read: Analyse the hardware, software, web-based, and database technologies involved in setting up a secure E-Commerce site

Customer expectations:

Raised expectations for a quick and efficient service e.g. timely responses to customer communications, quick delivery of the product or service, accurate information, reduced pricing for the product/service, greater choice

A key to a successful business is customer satisfaction. A lot of companies are taking advantage of feedback and reviews to hear from customers so they can improve their services.

A company that listens to feedback and responds well will have a competitive edge. It is noticed that if you have high-quality products but bad service, then your customers will stop buying them even though they like your product. Low customer expectations raise the need for better service which leads to faster response time and low turnover rates.


Wider market, niche target marketing, lower overheads and costs, greater flexibility, and access to goods/services 27/7

The benefits are a wider marketing reach, increased rates of conversion, and the ability to use specific data for marketing purposes to create more personalized ads.

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Niche target marketing is the act of targeting specific groups to satisfy their needs. The main benefit of niche marketing is that it provides these people what they are looking for. A business can get a lot of profit by providing one thing and perfecting it.

Lower overheads and costs mean that you are able to make a profit on a lower level of revenue, and profit margin. You can also fund your business with less capital required, operate at a lower cost per unit, produce more units for the same amount of investment.

Increased flexibility poses a number of physical benefits, such as a greater range of movement for both professional and recreational activities. Flexibility also helps improve blood circulation, prevents injuries, and increases joint stability.

As human beings, we are all motivated by a desire to maximize our degree of satisfaction. In other words, we want more goods and services because they will make us feel good–to varying degrees, depending on what they are and how they affect us.

In the future when there is, theoretically speaking unlimited access to goods and services 24 hours a day 7 days a week.


Visibility, security issues, and threats, downtime, high set up and maintenance costs, need to employ a technician or web-based administrator to manage the provision.

Having a website and not having it visible to the rest of the world is similar to not having one at all. It is important that you get your business online so people can see it and contact you. There are many providers who provide services such as hosting, domain registry, content management software, SSL certificates for secure web pages.

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As with any other process, there are security issues associated with e-commerce. The main ones being phishing scams and website cloning where attacker clones a legitimate site or part of a legitimate site to redirect customers.

Downtime means when your website goes down or displays errors in certain situations like system failure or temporarily unavailable service due to maintenance etc.

If you want your business online then be ready for high setup and maintenance costs.

For example, you will need a domain name for your business, this means registering the name and paying a small yearly fee for it; then you have to pay for hosting services (a place to keep your website); reliable web service provider like Unlimited Web Hosting Services; secure server security solutions require to protect your company or customers from hackers trying to gain access to confidential information like credit card numbers, etc.

A web-based administrator is a preferred choice if you want to keep costs low. We offer a wide array of web-based technologies that make it easy for our clients to run their site without having to pay for an onsite IT expert.

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