BEC - How Banking Supports E-Commerce Lesson

How Banking Supports E-Commerce

Ebay, Amazon, Dell. What do these companies have in common? All of them are online businesses that deal in e-commerce. Buying and selling items online are a part of e-commerce.

E-Commerce Consumer Benefits: - Lower prices than brink and mortar stores. - More convenient because items are delivered to your door. - Global marketplace available to everyone. - Ability to bid on some sites more variety. - Easier to compare products. E-Commerce Vendor Benefits: - Reduced costs forr labor, paperwork, space - Lesss time between order and payment - Improved communication with suppliers. - Better Relationships with customers - Able to reach new markets (Especially overseas)

Online Banking

Banks view online banking as a powerful way to attract and maintain customers. Most of the services offered in a brick and mortar bank are now done online. Online banking has both advantages and disadvantages.

Advantages

  • Convenience - Online banks are open 24/7.
  • It's everywhere you are - Out of state? Out of the country? Just login!
  • Faster transactions - quicker than a teller or an ATM.
  • Efficient - Manage all your monetary accounts from one site.
  • Effective - Offers many sophisticated financial tools.

Disadvantages

  • Complicated to start - You usually have to set up your account in person with proof of who you are.
  • Learning new technology - It takes time to get use to anything new.
  • Site changes - Everything gets improved eventually, creating a new learning curve.
  • Building trust - Banks are only as good as the trust people put in them. Many customers are still uncomfortable with doing business online.

New Banking Services

Banks are finding new ways to provide both financial and non-financial services. Some new types of services that banks are exploring include the following.

Self-Assessment

Sort each of the items into the correct pile to identify them as either an advantage to online banking or a disadvantage.

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