Evaluate ecommerce for businesses and customers
Compare online transactions with other channels while considering costs, reach, access and customer risk.
Cambridge IGCSE (9–1) Business 0774, 2027–2029 Version 2, Topic 3. Apply each marketing choice to the stated customers, product and business constraints. Written practice is self-checked and does not certify exam readiness
Before you begin
- No previous marketing study is assumed. Identify the customer group, the business objective and the evidence in each situation before choosing a response.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Which is an ecommerce example in the syllabus?
What you will learn
- Recognise ecommerce examples
- Explain business advantages and disadvantages
- Explain customer advantages and disadvantages
Online transactions can take different forms
Ecommerce examples include online shopping, online ticketing and mobile-phone or internet banking. A business may use an online channel alongside physical locations.
For a business, ecommerce can extend access beyond local opening hours or locations and collect information about online orders. It also requires a reliable digital system, payment handling, delivery or service support and protection of customer information.
Customers experience trade-offs too
Customers may compare options conveniently and buy without travelling. However, they may be unable to inspect a product in person, may face delivery delays or costs, or need reliable internet and payment access.
The advantages and disadvantages depend on the product and customer. Do not assume every customer prefers online purchase or that a website alone guarantees more sales.
Pause and explain
What is one possible ecommerce disadvantage for a customer?
Worked example
A small theatre sells tickets online. Give one benefit to the theatre, one benefit to customers and one issue for each to manage.
Show the worked solution
- The theatre can sell beyond box-office hours.
- Customers can book remotely.
- Consider system reliability and customer access or support.
Answer The theatre can accept bookings beyond box-office hours, while customers can book remotely. The theatre must keep the ticket system reliable and customers need digital access and a way to resolve booking problems.
Try a topic test
Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
A farm shop plans online grocery orders. Explain two business benefits and two operational issues it should assess.
Give me a hint
Consider market reach and convenience alongside stock, payment and delivery.
Compare my reasoning
- Online ordering may reach customers beyond walk-in traffic.
- Orders can arrive outside opening hours.
- The shop needs accurate stock, secure payment and reliable delivery.
Online orders may widen customer access and allow orders outside opening hours. The shop must manage accurate stock, payment security, picking and delivery so customers receive the correct groceries on time.
Look for these in your work
- Benefits explained
- Operational issues named
- Customer experience linked
A customer buys shoes online but the fit is wrong. Explain one ecommerce advantage retained by the customer and one disadvantage illustrated.
Give me a hint
Separate convenience from the inability to try the item in advance.
Compare my reasoning
- The customer could compare and order remotely.
- They could not test the fit before purchase.
- Returns may require time or delivery cost.
The customer could compare and order from home, but could not try the shoes before purchase and may need to return them. Clear sizing information and return arrangements can reduce, but not remove, this risk.
Look for these in your work
- Advantage identified
- Disadvantage linked
- Possible mitigation
A business assumes ecommerce will eliminate its physical-store costs. Explain why this assumption is weak and identify costs to compare.
Give me a hint
Online sales can add systems and fulfilment responsibilities even if the store remains open.
Compare my reasoning
- The business may pay for website, payment and cybersecurity systems.
- Picking, packaging, delivery and returns have costs.
- Compare these with any saved premises or sales costs.
Ecommerce does not automatically remove physical-store costs and can add website, payment, fulfilment, delivery and returns costs. The business should compare the total channel costs with any savings and likely sales contribution.
Look for these in your work
- Assumption challenged
- New costs identified
- Like-for-like comparison
Common mistakes
- Treating online selling as cost-free
- Assuming all customers have equal internet access
- Ignoring fulfilment and customer service
What can you explain now?
Which is an ecommerce example in the syllabus?
Compare with the explanation
Online ticketing
Online ticketing is listed as an ecommerce example.
After trying it yourself, choose your next review. This is your self-assessment.
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Make it stick
Name one advantage and one disadvantage of ecommerce for both a business and its customers.
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.