1. How does a small business specifically benefit from e-commerce? A large business?

For a small business, e-commerce is a game-changer because it levels the playing field. It gives them
global reach without having to open physical locations, which saves a lot of money. It also helps
them customize their online presence and interact directly with customers. A large business benefits
from e-commerce by streamlining operations, cutting order processing expenses, and expanding
even more internationally while keeping costs low (Page 405).

2. Health insurance is one industry in which B2B e-commerce is prevalent. Name another industry
that you think is suitable for B2B e-business and explain why.

I think the automotive industry is perfect for B2B e-commerce. Car manufacturers constantly deal
with hundreds of suppliers for parts and materials. Using e-commerce systems like electronic data
interchange (EDI) and private exchanges helps manage those relationships smoothly, speeds up
orders, and reduces errors (Page 408).

3. What is e-tailing? How does it work?

E-tailing is just retailing over the Internet. It works by letting customers browse products on a
website, pick what they want, and pay for it online. Some e-tailers run pure shopping sites, while
others have informational sites that show products but do not sell them directly. Think of Amazon or
Walmart’s website when you think about how e-tailing works (Page 409).

4. What are the benefits of B2C e-commerce, to both consumers and companies?

Consumers love B2C e-commerce because it is super convenient, often cheaper, and personalized.
Companies love it because it cuts overhead costs, broadens their market, and lets them gather data
on customers to serve them better. It is a win-win if done right (Page 409).

5. What are consumers’ greatest concerns about e-commerce? How are businesses addressing
these concerns?

Security and privacy are the biggest concerns. People worry about their personal and payment info
being stolen. Businesses are fighting back with encryption, safe online payment systems like SSL, and
certifications like TRUSTe to show customers they take security seriously (Page 412).

6. Do you predict that businesses will continue to use social networking as part of their e-
commerce strategy over the next decade? Why or why not?

Absolutely, yes. Social networking helps businesses connect with people where they are already
spending time. Plus, platforms like Instagram and TikTok are making it easier to shop right through
the apps. That trend is not slowing down anytime soon (Page 416).

7. Most of the world’s Internet users live in Asia. Identify two implications that you believe this
fact will have on e-commerce over the next few years.

First, businesses will have to customize their websites and marketing for different languages and
cultural preferences. Second, logistics and delivery services in Asia will become even more important
as companies try to meet the massive demand there (Page 419).

8. If a business is planning to develop its website for use by mobile phone devices, what factors
should it keep in mind when designing the site?
They should focus on fast load times, simple navigation, mobile-friendly layouts, and making sure
the checkout process is smooth and secure. Mobile users have less patience, so everything needs to
be quick and easy (Page 422).

9. Do you agree with the decision by some firms to abandon their websites and rely on social
networking sites and blogging sites instead? Why or why not?

I get why they do it, but I do not fully agree. Relying only on social platforms means you are at the
mercy of those platforms changing the rules. Having your own website gives you control over your
brand and customer data. Social media is great for marketing, but a website is still important.

10. Discuss current e-commerce trends. As an online shopper, can you identify additional trends?

Right now, we are seeing a shift to experiential shopping, faster deliveries, better use of AI, and even
things like augmented reality to try on products virtually. Personally, I have also noticed a lot more
personalized ads and live-stream shopping events popping up lately (Page 424).

Case 15.1 Fashion Retailers Haul in Sales via YouTube

Honestly, yes. When a hauler talks about a product, it feels like advice from a friend instead of a
company trying to sell me something. They show real excitement and sometimes even mention the
flaws, which makes them seem way more trustworthy.

2. What is your opinion of retailers like Aeropostale and Forever 21 that actually pay haulers to
promote their goods?

I think it is smart business. If brands can partner with influencers in an authentic way, it can boost
sales and build loyalty. As long as the hauler stays genuine and is clear about being paid, it does not
really bother me. It is just the modern version of advertising.