Critique e-business operations from each of the following four perspectives: on-line payments, customer satisfaction, supply chain management, and advertising products/and services By DJenetalawrence1 Assignment 3: Critique e-business operations from each of the following four perspectives: on-line payments, customer satisfaction, supply chain management, and advertising products/and services On-line shopping has continued to spike as more and more people turn to the convenience of the internet.
Although it is convenient to shop from the privacy of our home, the perspective of on-line payment does present some challenges. Both the customer and the vendor are concerned about security measures. Customers are worried that their credit card information remains protected and that their privacy is safeguarded. There is the possibility that the sellers’ website may be subject to hacking and thus the customers’ information could be stolen. On the vendor’s part, they need to be able to authenticate the buyer.
Vendors have to trust the buyer to pay for the merchandise and especially in the case of e-check, they are trusting that the funds will be available when demanded from the bank. Additionally, the seller wants to know that the buyer will not repute the transaction by denying he or she did not order the item. The inability to be able to physically examine products before purchasing can subject customers to a greater possibility of scam. Because of identity theft, vendors may be faced with the possibility of not being able to collect payment for their products.
Although most customers are unaware of the charges, most credit card payments include a transaction fee up to an average of 2. 25%. While it may be simple to compare the base price of an item on he internet, vendors may subject customers to some additional cost that are not disclosed up front. Some charges, such as shipping and handling, are often not disclosed until the last step in the check out process and at times are most costly than the merchandize. Merchant also incur a charge ot setting up a secure system to receive credit card payments.
Sometimes customers are frustrated with the purchasing of good on-line because of the lack of variety or sizes. Many times, I have attempted to purchase an item on- line only to find out that my size has been sold out. Additionally, a merchant would dvertise on their home page for “final clearance” items starting at a specific price (e. g. $3. 99); however, once you browse through the merchandise selection you will find that the advertised prices does not match the picture on the main web page. Another issue with on-line shopping is delivery time periods.
Although on-line shopping provides the convenience of not leaving home, customers do not want to wait weeks for the delivery of the items. Recently, we purchased an item from a very reputable vendor with an advertised delivery date of three to five business days. We had to wait for the item for six weeks. I found this to be unacceptable. Of course the vendor had a fine print that they would not refund any money until after a six-week period and research is completed to locate the item. Needless to say, I would think twice before ordering another product from this vendor.
Because there is no ability to physically examine an item and we are inherently people of vision, customers do not always read the entire product description. Many times when the items are received, they are not what the customer expected. As many customers do not want to go through the hassle of returning the item, they simply keep the merchandise nd do nothing, especially if they had to pay for returns and restocking fees. The availability of live customer service can also be an issue at times. Trying to reach a representative on a vendor’s toll-free number can, at times, be tedious at best.
Being military and stationed overseas, I am forced depend on on-line chat or e-mails to resolve any issues that I may have with an on-line order. Sometimes this can be very frustrating as emails take some time between sending and receiving and on-line chats are not always available because of the time difference. Both forms of ommunication have been misinterpreted and required multiple submissions to get the point across and resolve the issue. From a supply chain management (SCM) prospective, when business to business (82B) transactions are primarily focused on the ordering of supplies, many problems can arise.
One such predictable problem is the misinterpretation of the demand forecast. Another issue is the breakdown of customer service. With the focus primarily on getting supplies, little research is given to understand what the customers want or to provide world-class service after the supply is received. Business must focus on Just ordering supplies in order to have a successful supply chain management. Extra costs of expedited shipping, revenue losses, low turn-over and high inventory costs are also indicators of an order focused business.
According to Riener, Turban, Potter, and, Cegielsk, (2010) “one of the most persistent supply chain management problems is known as the bullwhip effect. ” So what is bullwhip effect? It is caused when orders sent to suppliers manufacturers create larger inconsistencies than the sales to the end user or customer. In other words more upplies are ordered that can be sold in a reasonable period of time. These inconsistencies can disrupt the efficiency of the SCM process as many of the links in the chain will either over estimate or under estimate the demand tor goods. esult in exaggerated flux in the system. Communication will also become a problem within in the SCM. Focus on ordering of supplies is Just not good business sense as it can ultimately lead to business failure. With millions of products and services advertising on the web, many companies are faced with the issue of getting their product to stand out and attract buyers. This can become an advertising nightmare. Knowing what sites to advertise your product to remain competitive requires extensive research. No longer are you able to simply purchase an ad in the local newspaper.
Which domain offers the most exposure with the least amount of cost, what size ad to purchase–should your ad be animated, banner or pop-up or should you use a pay-per-click service are Just a few questions than must be asked. Choosing the right advertising company, Just as in brick and mortar business, will have a tremendous impact on the success of sales of your goods and services. Although you can register your business locally for free with Yahoo, Bing, or Google, you must know what buzz words to use so that your business comes up in the search engine.
Many times, I have search for a product or service in Google search engine and the websites I received has very little relationship with I am seeking. Technology may also hinder advertising. Many internet users have ad blocking software such as pop-up blockers that prevents ads from appearing on their computer screen. Additionally, advertisers must contend with regulations that govern advertisements. However, the most challenging aspects that advertisers face hen advertising via the internet is ad-blocker programs.