CAIE IGCSE Business Studies 3.3.5 ecommerce
Practise ecommerce questions by explaining online selling, website uses, customer convenience and drawbacks for the case business.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Explain business benefits such as wider reach, online orders or lower shop dependence.
- Apply disadvantages such as setup costs, delivery problems or reduced personal contact.
- State customer opportunities such as convenience, home delivery or easier comparison.
3.3.5—Ecommerce question 1
[Maximum number: 6]
Caleb wants to be an entrepreneur. He plans to start up a business selling handmade furniture including tables and chairs. He will sell his products to a niche market. Having a good brand image will be important. Caleb knows there are many legal controls that can impact his marketing strategy. He is considering selling his products using e-commerce. Caleb also has to decide on a suitable location for the business.
Explain two threats to Caleb's business of using e-commerce to sell his products.
Threat 1:
Explanation:
Threat 2:
Explanation:
Award 2 marks for identification of each relevant threat (max 2).
Award 2 marks for each relevant reference to this business (max 2).
Award 2 marks for each relevant explanation (max 2).
Points might include:
- More competition / difficult to stand out from competition [k] especially as it's a new business [app] leading to less revenue [an]
- No passing trade [k] so could mean fewer sales [an] which could influence Caleb's location decision [app]
- Not everyone has access to the internet [k] which reduces its target market [an] for this niche market product [app]
- Cost to design / maintain website [k] increasing cash outflows [an]
- Lack of personal service / no face-to-face contact with customers [k] which might make it difficult to develop brand loyalty [app] which could damage its reputation [an]
- Need to pay for pop-ups to advertise on popular sites / feature at top of search engine listings [k]
- Risk of hackers / fraud [k]
Other appropriate responses should also be credited.
To use words from the stem as application the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- (Handmade) furniture or examples such as tables/chairs
- Legal controls over marketing
- Location decision
- New business / start-up
- Niche market
- Brand loyalty (is important)
- Entrepreneur
Other appropriate examples in context can still be credited.
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