Business · 3 Marketing

3.3.5 Ecommerce

Before you start

The four elements of the marketing mix: product, price, place and promotion (3.3.1 to 3.3.4). Ecommerce sits closest to place — it is another way of getting the product to the customer — but it changes price and promotion too.
Distribution channels: direct to customers, through retailers, wholesalers or agents (3.3.3). A business selling on its own website is selling direct.
Dynamic pricing: setting flexible prices based on current demand (3.3.2).
Revenue = selling price per unit × number of units sold, and profit = total revenue − total costs. Most Business analysis ends with what happens to one of these.
Market segmentation by age, income, location, gender and lifestyle (3.1.4) — useful when you ask which customers ecommerce suits and which it leaves out.

Syllabus objectives covered (3)

examples of ecommerce, e.g. mobile phone / internet banking, online shopping, online ticketing
advantages and disadvantages of ecommerce for businesses
advantages and disadvantages of ecommerce for customers

Part 1 of 7

What counts as ecommerce

Ecommerce is the buying and selling of goods and services using the internet. The word is short for electronic commerce. The idea that matters is that the transaction itself — choosing, ordering, paying — happens online, so the customer does not have to be in the same place as the business.
The syllabus gives three examples. You should be able to name each one and say what is being bought, sold or paid for.
Mobile phone / internet banking. A customer uses a bank's app or website to check a balance, pay a bill or transfer money, instead of going to a branch. Nothing physical is bought — the bank is providing a service online. That still counts as ecommerce.
Online shopping. A customer chooses a product on a website or app, pays online, and has it delivered or collects it. This is the example most people think of first.
Online ticketing. A customer books and pays for a ticket — a flight, a train, a concert, a cinema seat — online, and usually receives the ticket on their phone or by email. Nothing needs to be posted at all.
Other activities fit the same definition: ordering a takeaway through an app, paying for a streaming subscription, booking and paying for a hotel room. Any activity where something is bought, sold or paid for online is a valid example.
The trap on an 'Identify two examples' question. 'The internet', 'a website', 'email' and 'social media' are not examples of ecommerce. They are tools. An example is an activity in which something is bought, sold or paid for. Seeing an advert on social media is promotion (3.3.4); buying the product by clicking through and paying is ecommerce.
The same test tells you when a business is not doing ecommerce. A hairdresser whose website only shows its address and opening hours is using the internet, but nothing is bought there. If customers can book and pay for an appointment on that website, it is ecommerce.
Also remember the list rule. On 'Identify two…', only the first two answers you write are marked. Writing four in the hope that two are right gains nothing — if your first two are 'social media' and 'online shopping', the second earns 1 mark and the correct answers after it are ignored.

Part 2 of 7

Two viewpoints: the business and the customer

The syllabus splits the advantages and disadvantages into two separate lists: for businesses, and for customers. A question will tell you whose side you are on — 'advantages for Tallis Books', 'disadvantages for customers'. Find that word before you write anything.
The same fact often gives a different point from each side. Take 'the website is open 24 hours a day'. For the customer, it is convenience: they can buy at midnight. For the business, it is more time in which to make sales, so revenue can rise. Same fact, two different points.
The costliest mistake in this topic is answering from the wrong side. If the question asks for an advantage to the business and you write 'customers do not have to travel to the shop', you have described a benefit to the customer. An examiner is looking for a benefit to the business.
If you want to use a customer benefit in a business answer, turn it round and finish the thought on the business's side: 'customers do not have to travel to the shop, so more of them may buy, increasing the business's sales revenue'.
Watch out for mirror statements. If your advantage is 'costs are lower' and your disadvantage is 'costs might not be lower', the second earns nothing — a mark scheme does not credit the mirror image of a point it has already credited. Your disadvantage must be a genuinely different idea, such as delivery costs or security risks.
Watch the word 'cheaper' as well. For a customer it usually means a lower price. For a business it should mean a lower cost — and you must say which cost: shop rent, sales staff wages. 'Ecommerce is cheaper' on its own does not say who pays less, or why.

Part 3 of 7

Advantages of ecommerce for businesses

Each advantage below is given as a point and then the chain of consequences that follows from it. The point is knowledge. The chain is where analysis marks come from, so learn the chains, not just the headings.
A much larger market. A shop can only sell to people who can get to it. A website can sell to customers across the country, and sometimes in other countries. More potential customers, so more sales, so higher revenue.
Selling 24 hours a day, 7 days a week. The website takes orders when the shop is closed, so no sale is lost because of opening hours.
Lower costs of shops and staff. A business selling online may need fewer shops, or none, and fewer sales assistants. That cuts rent and wages, so costs fall. The business can then make more profit on each sale, or lower its prices to compete.
Information about customers. Every online order records what was bought, when, and by whom. The business can use this to send targeted emails and offers to the customers most likely to buy, so its promotion spending is less wasted.
Prices can be changed quickly. Prices on a website can be changed in seconds, so a business can react to a competitor, or use dynamic pricing — raising prices when demand is high and lowering them when it is low. Online ticket sellers often do this.
A small business can compete with larger ones. A sole trader's website can reach the same customers as a large company's, without paying for a shop on a busy street.

Part 4 of 7

Disadvantages of ecommerce for businesses

Cost of setting up and running the website or app. It must be designed, kept up to date and repaired when it breaks. A small business may have to pay someone to do this. These are cash outflows that come before any extra sales arrive.
Delivery and returns. Every order has to be packed and delivered, which costs money. Customers who cannot see a product before buying are more likely to send it back, and returned goods may be damaged or unsellable. Both reduce profit.
Security risks. A website can be hacked and customers' card details or personal information stolen. The business must pay to protect its systems, and a data theft can badly damage its reputation, so customers stop buying from it.
More competition. Customers can compare the prices of many sellers in seconds. The business is no longer competing only with the shop down the road but with every seller online, which can force it to cut its prices and accept a lower profit margin.
Losing the personal touch. Some customers value advice and a friendly face. A business that moves online may lose those customers, and it loses the chance to persuade someone who is standing in front of the product.
Technical failure. If the website stops working, the business cannot sell anything through it until it is fixed, so sales are lost.
Effects on employees. If shops close, shop staff may be made redundant. Redundancy payments are a cost, and the employees who remain may be demotivated.

Part 5 of 7

Advantages and disadvantages of ecommerce for customers

Now switch sides. Every point here must be a gain or loss to the customer — their time, their money, their choice, their safety.
Advantage: convenience. Customers can buy, bank or book at any time, from anywhere with an internet connection, without travelling or queuing. That saves travel time and travel costs.
Advantage: wider choice. They are not limited to what the nearest shops stock; they can choose from sellers across the country or the world.
Advantage: easier to compare prices. Checking several websites takes minutes, so customers are more likely to find a lower price.
Advantage: reviews. Many websites show ratings and comments from other buyers, which help a customer judge quality before paying.
The syllabus examples give you ready-made applications. Internet banking: pay a bill or check a balance without visiting a branch during its opening hours. Online ticketing: choose a seat and get the ticket on a phone without queuing at a box office.
Disadvantage: cannot see, touch or try the product. Clothes may not fit and colours can look different on a screen, so customers may be disappointed and have to send things back.
Disadvantage: waiting and delivery charges. The product does not arrive straight away, and delivery may cost extra, so the total price can be higher than the price first shown.
Disadvantage: fraud and stolen data. Card details can be stolen, and fake websites can take money for goods that never arrive.
Disadvantage: needs internet access, a device and the confidence to use them. Customers without these — for example some older people, or people in areas with poor internet coverage — cannot benefit. If a bank closes branches because more customers bank online, these customers find it harder to get the service at all.
Disadvantage: less personal help, and awkward returns. There is no shop assistant to ask. Sorting out a problem through an email or a chat window can be slow, and returning an item means packing it, sending it and waiting for the money back.

Part 6 of 7

Turning a point into marks: k, then app, then an

Knowing the lists above earns you knowledge marks, and that is all. In a 6-mark Explain question, knowledge is only 2 of the 6 marks. The other 4 come from what you do with each point.
Here is a small business to practise on. Kora sells handmade leather bags from a stall at her town's Saturday market. Each bag sells for 60 dollars, and she sells about 15 bags each market day. She is thinking about selling online.
k — knowledge. Name a relevant advantage or disadvantage: 'Ecommerce lets a business reach a larger market.' This is correct, but it is true of every business in the world. That is the test for a bare knowledge mark: could you paste this sentence into an answer about a completely different business? If yes, it is knowledge only.
app — application. Tie the point to a fact from the question: 'Kora could sell her handmade bags to customers outside her town, not only to people who visit the Saturday market.' Now the sentence could only be about Kora.
What counts as application is a fact from the stem that makes sense with the point you are making: the product (handmade leather bags), a number (15 bags, 60 dollars), the type of business, where and when it sells (a market stall, once a week). In the specimen mark scheme the listed application points are facts like these — the product, a figure, the type of business — not simply the business's name.
an — analysis. Follow the consequence one step further, to something that matters to the business: revenue, costs, profit, cash, market share, reputation. '…so she is no longer limited to selling on one day a week, which could increase her sales revenue.'
The words that signal analysis are so, which means, this leads to, as a result. A quick check on your own answer: if a point has no 'so' in it, it almost certainly has no analysis mark.
Put together, one advantage worth 3 marks reads: 'Selling online would let Kora reach customers outside her town [k], not just shoppers at the Saturday market [app], so she could sell more than 15 bags a week and increase her revenue [an].'
The 4-mark Outline is different. For each point the scheme gives a mark for identification and a mark for application — no mark for development. So on an Outline, state the point, apply it, and move on. Adding a 'so…' chain loses nothing, but it costs time you need for the 6- and 8-mark parts.
The order inside a point does not matter to the examiner — the application can come first. But the habit of point, context, consequence stops you from forgetting one of the three.

Part 7 of 7

The 8-mark part (d): making a justified decision

In the specimen Paper 1, the last part of each question, part (d), is worth 8 marks and ends with 'Justify your answer.' The marks are up to 2 for knowledge, 2 for application, 2 for analysis and 2 for evaluation. So you need two developed points and then a decision that is argued, not just stated.
Build the two points exactly as you would for the 6-mark part: point, context, consequence. When the question asks whether a business should do something, one advantage and one disadvantage is the natural pair.
Evaluation is the decision plus the reason it wins. 'I think Kora should sell online' is a decision with no justification and does not earn the evaluation marks. The marks come from the because that follows it.
The justification must not repeat an earlier point. The specimen mark scheme says this directly. If your advantage was 'reaches more customers', your justification cannot simply be 'because she will reach more customers'. It has to add something new.
Three ways to add something new. Compare the sizes of the two sides: 'the extra revenue is likely to be greater than the cost of the website, because she currently sells on only one day a week.' Use a fact neither point used to break the tie: 'her bags are handmade, so she may not be able to make many more — a bigger market helps less if she cannot increase output.' Say what the decision depends on: 'it depends whether customers will pay 60 dollars for a leather bag they cannot touch first.'
The scheme rewards 'a justified decision', so either side can earn the evaluation marks. Choose the side you can argue best from the facts in the stem, not the one you think the examiner wants.
Do not stop at 'it depends'. 'It depends' can be part of a strong justification, but you still need to say which way you would decide, and under what condition.

Worked examples

Example 1. A student answers 'Identify two examples of ecommerce' with: '1. Social media. 2. Email.' Explain why this answer would not score, and write an answer that would.

Show the working

Go back to the definition. Ecommerce is buying and selling goods and services using the internet. An example has to be an activity in which something is bought, sold or paid for.
Test 'social media' against that. It is a way of communicating. A business can advertise on it, but advertising is promotion. Nothing has been bought or paid for just because social media exists. Not an example.
Test 'email'. Also a way of communicating. A business can send a customer an order confirmation by email, but the email is not the purchase. Not an example.
Now choose two activities that pass the test. The three syllabus examples all do: mobile phone / internet banking, online shopping, online ticketing.
Write only two. The first two answers are the only ones marked, so a third answer cannot rescue a wrong first or second one.

Answer: Social media and email are tools for communicating, not activities in which something is bought, sold or paid for online, so neither is an example of ecommerce. A correct answer: 1. Online shopping. 2. Online ticketing (for example, booking and paying for a train ticket on a phone). Internet banking would also be correct.

Example 2. Tallis Books is a bookshop in a city centre. It pays rent of 4000 dollars a month and employs 6 shop assistants. It sells about 2000 books a month. The owner is thinking about also selling books through a website. Explain one advantage and one disadvantage for Tallis Books of selling online. [6]

Show the working

Check whose side you are on: 'for Tallis Books'. Every point must end with a gain or a loss to the bookshop, not to its customers.
Plan the marks: 6 marks for two points means knowledge, application and analysis for each. Three pieces per point.
Advantage. Knowledge: a website can reach customers who do not come into the city centre. Application: use a fact — it is a city-centre bookshop selling about 2000 books a month. Analysis: so it can sell more books and increase its revenue.
Disadvantage. Choose one that is not the mirror of the advantage — not 'it might not reach more customers'. A strong one here is price competition. Knowledge: customers can easily compare prices with other online sellers. Application: a particular book is exactly the same whichever seller it comes from, so customers have no reason to pay more at Tallis. Analysis: so Tallis may have to cut its prices, which reduces its profit margin.
Now check the facts you did not use. It is tempting to write 'lower costs, because it saves rent of 4000 dollars'. But the owner is adding a website, not closing the shop, so the rent does not fall. Application must make sense with the point being made; a fact used wrongly does not earn the mark.

Answer: Advantage: a website lets Tallis Books reach customers who do not visit the city centre [k], so it can sell to readers across the country as well as in its shop, where it sells about 2000 books a month [app]. This means it can sell more books, which could increase its sales revenue [an]. Disadvantage: online, customers can compare prices from many sellers in seconds [k]. A particular book is exactly the same whoever sells it [app], so customers will simply buy from the cheapest seller, and Tallis may have to lower its prices, reducing its profit margin [an].

Example 3. Kora sells handmade leather bags from a stall at her town's Saturday market. She makes every bag herself and can make about 20 bags a week. Each bag sells for 60 dollars and she sells about 15 bags each Saturday. A web designer has offered to build her an online shop for 1500 dollars. Do you think Kora should start selling her bags online? Justify your answer. [8]

Show the working

Plan the 8 marks: two developed points give up to 2 knowledge, 2 application and 2 analysis marks; a justified decision gives the last 2. One advantage and one disadvantage is the natural pair for a 'should she…?' question.
Advantage, built point–context–consequence. Knowledge: reach customers outside her town. Application: not only Saturday-market shoppers; 15 bags. Analysis: so she can sell more and increase revenue.
Disadvantage. Knowledge: the cost of setting up the online shop. Application: 1500 dollars — use the numbers: that is the revenue from $1500 \div 60 = 25$ bags. Analysis: a large cash outflow before any extra sales have been made.
Now decide. Look for a fact neither point used, because the justification must not repeat them. Here it is: she can make only about 20 bags a week, and she already sells 15. That is the fact that settles it.
Work out what that fact means. At most she can sell $20 - 15 = 5$ more bags a week, which is $5 \times 60 = 300$ dollars of extra revenue. Covering 1500 dollars would take $1500 \div 300 = 5$ weeks — and longer in reality, because each bag also costs her materials.
Write the decision and why it wins. Then check the justification three ways: it adds something new (capacity), it uses the stem (20 bags, handmade), and it says what would change her mind.

Answer: Advantage: selling online would let Kora reach customers outside her town [k], not only shoppers at the Saturday market [app], so she could sell more bags and increase her revenue [an]. Disadvantage: setting up the online shop has a cost [k] of 1500 dollars, equal to the revenue from 25 bags [app], so it is a large cash outflow before she has made any extra sales [an]. Decision: I do not think Kora should sell online yet [eval]. She makes every bag by hand and can make only about 20 a week, so however many new customers the website brings, she can sell at most 5 more bags a week, 300 dollars of extra revenue, and it would take more than five weeks just to pay for the site [eval]. If she found a way to make more bags, the larger online market would then be worth the cost.

Where people go wrong

Mistake: Answering from the wrong side — giving a customer benefit ('customers can shop from home') when the question asks for an advantage to the business.

Instead: Read whose advantage the question asks for and end every point on that side: 'customers can shop from home, so more of them buy, increasing the business's revenue'.

The syllabus lists business and customer advantages separately, and the question names one. A point that stops at the customer's convenience has not said what the business gains.

Mistake: Giving 'the internet', 'a website', 'email' or 'social media' as examples of ecommerce.

Instead: Give activities where something is bought, sold or paid for online: online shopping, mobile phone / internet banking, online ticketing.

Those are tools for communicating or advertising. Ecommerce is the transaction itself. Only the first two answers on an Identify question are marked, so a tool in first place costs a mark that a correct later answer cannot win back.

Mistake: Writing 'ecommerce is cheaper' with no more detail.

Instead: Say who pays less and why: for a business, lower costs of shop rent and sales staff; for a customer, lower prices because they can compare sellers.

Cost (what a business spends) and price (what a customer pays) are different ideas. 'Cheaper' does not show which one you mean, so it does not show understanding.

Mistake: Stopping at the point: 'The website is open 24 hours a day.'

Instead: Add the context and the consequence: 'The bookshop's website takes orders at night when the shop is closed, so fewer sales are lost and revenue rises.'

A bare point earns only the knowledge mark. Application and analysis are two-thirds of a 6-mark Explain, and they are only earned by the parts after the point.

Mistake: Using a mirror statement as the disadvantage: 'Advantage: more customers. Disadvantage: it might not attract more customers.'

Instead: Choose a genuinely different disadvantage — delivery costs, website costs, security risks, price competition.

Mark schemes do not give further credit for the mirror image of a point already credited, so the second half of the answer scores nothing.

Check yourself

State the three examples of ecommerce given in the syllabus, and for each one say what the customer is buying or paying for.
Answer
Mobile phone / internet banking — the customer uses a bank's services, such as paying a bill or transferring money. Online shopping — the customer buys goods, which are delivered or collected. Online ticketing — the customer books and pays for a ticket, for example for a flight, train or concert.
A dentist's website shows its address and opening hours. A cinema's website lets you choose a seat and pay for it. Which one is ecommerce, and why?
Answer
The cinema's website, because a ticket is bought and paid for online. The dentist's website only gives information; nothing is bought, sold or paid for on it.
Identify two advantages and two disadvantages of ecommerce for a business.
Answer
Advantages (any two): reaches a larger market; can sell 24 hours a day; lower costs of shops and sales staff; collects customer information for targeted promotion; prices can be changed quickly. Disadvantages (any two): cost of setting up and running the website; delivery and returns costs; security risks; more price competition; technical failures stop sales; loss of customers who want personal service.
Identify two advantages and two disadvantages of ecommerce for customers.
Answer
Advantages (any two): convenience — buy at any time without travelling; wider choice; easier to compare prices; reviews from other buyers. Disadvantages (any two): cannot see or try the product; waiting for delivery and delivery charges; risk of fraud or stolen data; needs internet access and a device; less personal help and awkward returns.
'Customers can shop at any time of day.' Rewrite this as an advantage for the business, with a consequence.
Answer
The business can take orders at any time, including when its shops are closed, so fewer sales are lost and its sales revenue can increase.
Label the k, app and an in this answer about Zeno Shoes, a shoe shop in a small town: 'Zeno Shoes may get more returns, because customers buying shoes online cannot try them on to check the fit, which increases its delivery costs and reduces profit.'
Answer
k: 'may get more returns'. app: 'customers buying shoes online cannot try them on to check the fit' — it uses the product, shoes, and makes sense for the point. an: 'which increases its delivery costs and reduces profit'.
Outline one disadvantage of mobile banking for an 80-year-old customer who does not own a smartphone.
Answer
She cannot use mobile banking at all without a smartphone [k], so if her bank closes branches because more customers bank on their phones, she may have to travel further to reach a branch [app].

Exam questions

Try each part first. Open the mark scheme after you have written your answer.

Question 1. PetalPost is a florist owned by two partners. It has two shops in a large city and employs 12 people. Last year its revenue was 380 000 dollars, and 90% of its sales were to customers who walked into one of its shops. Cut flowers stay fresh for about five days. Many customers buy flowers for birthdays, often on the day itself. The partners are thinking about selling flowers through a website, with same-day delivery anywhere in the city.

(a) Define 'ecommerce'. 2 marks No calculator

Mark scheme

pt2 Award 2 marks for clear understanding, 1 mark for some understanding. Clear understanding: the buying and selling of goods and services using the internet (2). Some understanding, e.g. shopping on the internet / selling things online (1). Do not award examples on their own (e.g. 'online banking'), as they do not define the term.

(b) Outline two advantages to customers of being able to buy PetalPost's flowers online. 4 marks No calculator

Mark scheme

k1 First advantage identified, e.g. convenience / can order at any time / no need to travel to a shop / can compare prices / can send flowers to someone else's address.
app1 Relevant application of the first advantage, e.g. can order birthday flowers on the day without visiting one of the two shops / flowers can be delivered anywhere in the city the same day. The reference must make sense in relation to the point being made.
k1 Second, different advantage identified. Do not credit a repeat or mirror of the first point.
app1 Relevant application of the second advantage. Accept all valid responses.

(c) Explain one advantage and one disadvantage for PetalPost of selling its flowers online. 6 marks No calculator

Mark scheme

k1 Advantage identified, e.g. reach more customers / a larger market / take orders when shops are closed / collect customer information for targeted promotion.
app1 Relevant application of the advantage, e.g. customers across the whole city, not only near its two shops / less reliance on the 90% of walk-in sales / birthday orders taken at any time.
an1 Relevant development of the advantage, e.g. so sales revenue could rise above 380 000 dollars / so it could gain market share from other florists.
k1 Disadvantage identified, e.g. delivery costs / cost of setting up and running a website / security risks / more price competition / technical failures.
app1 Relevant application of the disadvantage, e.g. same-day delivery across a large city / flowers stay fresh for only about five days so must be delivered quickly.
an1 Relevant development of the disadvantage, e.g. which increases costs and reduces profit / late or wilted deliveries lead to complaints and damage its reputation. Do not credit a disadvantage that is the mirror of the advantage. Accept all valid responses.

(d) Do you think PetalPost should start selling its flowers online? Justify your answer. 8 marks No calculator

Mark scheme

k2 Up to 2 marks for identification of relevant points. Advantages, e.g. larger market / sales outside opening hours / customer information / convenience for customers. Disadvantages, e.g. delivery costs / website costs / security risks / price competition / technical failure.
app2 Up to 2 marks for relevant application, e.g. florist / two shops / 12 employees / revenue of 380 000 dollars / 90% walk-in sales / flowers fresh for about five days / birthday flowers bought on the day / large city. The reference must make sense in relation to the point being made.
an2 Up to 2 marks for relevant development, e.g. higher sales revenue / higher costs reduce profit / damaged reputation from late deliveries / less dependence on customers walking into the shops.
eval2 Up to 2 marks for a justified decision about whether PetalPost should sell online, which does not repeat earlier points. E.g. Yes: birthday customers buy in a hurry, so being able to order and have flowers delivered the same day is exactly what they want, and the extra orders from across the city are likely to be worth more than the delivery costs, as long as delivery is fast enough for flowers to arrive fresh. OR No: delivering perishable flowers the same day across a large city is hard to control, and one late delivery for a birthday could damage the reputation that its walk-in sales depend on. Accept all valid justified decisions.

Question 2. Harbour Bank has 40 branches. It has launched a mobile banking app that lets customers check their balance, pay bills and transfer money. The bank plans to close 10 of its branches next year. 30% of its customers are aged over 65.

(a) Identify two examples of ecommerce. 2 marks No calculator

Mark scheme

pt1 First valid example, e.g. online shopping / mobile phone or internet banking / online ticketing / ordering food through an app. Only award the first two answers given.
pt1 Second valid example. Do not award 'the internet', 'a website', 'email' or 'social media' on their own — these are tools, not activities in which something is bought, sold or paid for.

(b) Explain one advantage and one disadvantage for Harbour Bank's customers of using its mobile banking app. 6 marks No calculator

Mark scheme

k1 Advantage to customers identified, e.g. convenience / can bank at any time / no need to travel or queue.
app1 Relevant application, e.g. can pay bills or transfer money without visiting one of the 40 branches / useful as 10 branches will close.
an1 Relevant development, e.g. so customers save travel time and travel costs / so they can check their balance before spending and avoid going overdrawn.
k1 Disadvantage to customers identified, e.g. needs a smartphone and internet access / risk of fraud or stolen details / less personal help.
app1 Relevant application, e.g. 30% of customers are over 65 and some may not have or be confident using a smartphone / 10 branches closing.
an1 Relevant development, e.g. so these customers may have to travel further to a remaining branch / may lose money if their details are stolen. Points must be about customers, not the bank. Accept all valid responses.

How this is examined

Deciding whether a particular business should start selling online — weighing its gains against its costs and risks.: An 8-mark part (d): 'Do you think [business] should start selling online?' or 'Do you think the advantages of ecommerce for [business] are greater than the disadvantages? Justify your answer.' Up to 2 each for knowledge, application, analysis and evaluation. Two points, one each side, each tied to a stem fact (the product, a figure) and followed by a 'so…' consequence for revenue, costs or reputation. Then a decision with a new reason that does not repeat either point — a fact neither point used, a comparison of the sizes, or what the decision depends on. 'Yes, because it will get more customers' repeats the advantage and earns no evaluation.
One advantage and one disadvantage of ecommerce, for whichever side the question names.: A 6-mark Explain: 'Explain one advantage and one disadvantage for [business] / for [business]'s customers of…' Three marks per side: a correct point [k], a stem fact that makes sense with it [app], and a consequence introduced by 'so' or 'which means' [an]. The disadvantage must not be the mirror of the advantage. A business point must end on the business (revenue, costs, profit); a customer point must end on the customer (time, money, choice, safety).
Advantages or disadvantages of buying online for this business's customers.: A 4-mark Outline: 'Outline two advantages to customers of…' For each: the point [k] and one relevant stem fact [app] — for a florist, for example, 'can order at any time [k], so birthday flowers can be ordered on the day itself without going to a shop [app]'. No development mark exists on an Outline, so keep each point short.
What ecommerce is, and real examples of it.: A 2-mark Define of 'ecommerce', or a 2-mark 'Identify two examples of ecommerce'. Define: 'buying and selling goods and services using the internet' for 2; something vaguer such as 'shopping on the internet' shows only some understanding. An example is not a definition. Identify: two activities where something is bought or paid for online — online shopping, internet / mobile banking, online ticketing. Only the first two answers count; 'social media' and 'email' are tools, not examples.

Words to know

Ecommerce: The buying and selling of goods and services using the internet.
Internet / mobile banking: Using a bank's website or app to check balances, pay bills or transfer money without visiting a branch.
Online ticketing: Booking and paying for tickets (travel, events, cinema) online, usually receiving the ticket electronically.
Dynamic pricing: Setting flexible prices based on current market demand; easy to do on a website because prices can be changed instantly.
Knowledge (k): A mark for a correct, relevant business point.
Application (app): A mark for a reference to a fact in the question's business context that makes sense with the point being made.
Analysis (an): A mark for developing a point into its consequence — usually for revenue, costs, profit, cash or reputation.
Evaluation (eval): Marks in part (d) only, for a justified decision that does not repeat earlier points.
Mirror statement: The opposite of a point already made (lower costs / costs not lower). It earns no further credit.

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