Digital trading refers to ordering, buying, selling and paying for products and services using the internet. 

This can be done with:

–customers

– or other businesses

Some of the main advantages/disadvantages are highlighted in this video

Advantages

• An effective website will give the business a professional image and make it trustworthy so customers are more likely to use it

• Provides access to a global market

• Increased sales due to a larger market and the fact that people can trade digitally 24/7/365

• Website information can be updated quicker than business documents, such as catalogues

• Digital trading could lead to lower costs for the business (Reductions in shop space required and shop floor staff) 

• Cost effective way of promoting the business to many customers, through search engine listings

• Some businesses will not need a high street location or expensive showrooms, this is a major cost saving.

Disadvantages

• Costs associated with the design, maintenance and updating of the website can be high to introduce

• New staff with expertise in this area may need to be appointed or existing staff

 retrained – all of which adds to costs

• Technical difficulties can lead to a poor corporate image

• Security concerns can be a problem, especially when dealing with people’s money or personal details

• Costs will be incurred through the delivery of goods to customers

• Adds additional legal and security issues

• Increase the level of competition faced by the business as competitors can access companies from all over the world.