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Task 20. Benefits and Drawbacks on running an Online Business. An example of Drawbacks on selling products online(Alcohol). Benefits of Selling online.
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Benefits of Selling online Selling online has its own benefits. One of these benefits could be very efficient for the customers since they could access, buy, and review the product directly online. There is no limit on selling online when it comes to time. It is open 24hours/7days, 365 days a year. Another benefits of businesses online is you will have lesser employees to hire and very easy to monitor the transactions. Having less employees could decrease the money spent for the salaries of the employees.
Drawbacks of Selling online The are also some drawbacks in selling online. You don't know who are the people who are buying or involved in your business transactions. For example, selling alcohol online but not knowing the real ages of the buyers and just using their parents cards to purchase these products. Also, selling online is quite risky. It can be prone to viruses that greatly deal great damage of the system if not monitored. Hackers can also be a huge risk. They could infiltrate and steal money through your business without you even knowing. You will also need to keep your website running and maintained which could make you spend a lot of time and money.
Problems that can be encountered when selling online both for the customer and seller. CNP (Card-Not-Present Fraud) This crime most commonly involves the theft credit or debit card details that are then used to make a purchase over the internet, by phone, or by mail order. In general, the difficulty in countering this type of fraud lies in the fact that neither the card nor the cardholder is present when the transaction happens. Card-not-present fraud accounts for more than half of all card fraud, but these losses have to be seen in the context of a massive growth in CNP spending over the past ten years, especially over the internet. Source: http://www.financialfraudaction.org.uk/Financial-cnp-fraud.asp
Reasons for the decrease of victims from Card-Not-Present Fraud On the time of the rise of electronic businesses and transactions, CNP Fraud has affected thousands of victims due to ignorance of technology or recklessness of the user. But thanks to the increasing use of sophisticated fraud screening detection tools by retailers and banks, as well as the growth in the use of MasterCard Secure Code that can be registered into your cards account and Verified by Visa by both online retailers and cardholders. There are also some online companies that helps you keep safe of using your credit card information like using PayPal as a base in buying your items online.
Advice for Retailers Shop and Stores It is more advisable that the consumer’s Credit Card or Debit Card in control upon purchase of your product. So using the chip detection device for card transactions. Online Retailing It is also convenient for customers if your business also manages online transactions and selling your products. Not all people bother on going to shops to buy their desired items but rather they sit on the computer and browse though the internet.
Payment Security Tips • Making Sure that the applications and equipments you use is secure and meets the PCI DDS(Payment Card Industry Data Security Standards) requirements. • All applications and software are up-to-date and highly secure by an anti-virus this also applies to computers you use. • All Information on customers whether personal or what they bought should be kept in discreet confidentiality. • Make sure all transactions in your business is kept saved and on back-up like the consumer’s details and what he bought. • Your business should contain Fraud Prevention Tools like verified by VISA or MASTERCARD Security Code to minimize or avoid frauds for consumers sake.
Advice for Consumers Secure Online Payments • Computer is Protected Making sure that your personal computer is always protected by an Anti-Virus and Firewall. Having these will reduce or cant encounter viruses by detection of your Anti-Virus and Firewall against hackers which want to get a hold of your information. • Look for the Padlock Before showing or sending your information like credit card details into a website, make sure that the website and how you send it is in a secure manner. All data that is transferred should be encrypted so that no one will be able to read or access that information about you. • Register your Credit Card Before using your Credit Cards, Debits Card, and etc in buying online, make sure that put a second password when buying to secure your information and not let anyone get an access on buying like CNP Fraud. • Always Logout Online Businesses will require you to sign in or create an account for you to be able to buy there products. Each time you buy something, you will need to login your account ID/ Email then a password. In this manner, you should always log-out the account after purchasing something to avoid people to get an access of your account when you are gone. Not logging-out is prone to hackers and other people who do illegal things.
Reporting a Fraud Ways on How to Report a Fraud in www.actionfraud.police.uk • Reporting Online You can report any Fraud you have encountered trough online message in which you would need to answer a couple of questions about how you were affected and how they would help you about your problem. • Report Via Chat You can chat via chatting with their staffs about what you have encountered and how they would able to help you. It is a very simple and direct way to report a fraud. • Report Via Phone As direct as chatting, reporting via call is also a very good and direct contact given their contact information in their website 7 days a week.
Laws and Things to abide on online businesses There are several laws needed to abide when it comes to businesses online. These mostly depends on what kind of business or products you sell on your business and does it needs a permit or not. For example, hazardous products like aerosols are need to have a permit upon delivery. Abiding also the amount and sizes of the products is also needed to take precaution. Selling alcohol can also be an example. You should have read or studied the laws upon selling it on the locations you are selling and having the permit to do so.
Domain The Website can be Bought online through “123-reg.co.uk” Costing: £21.98/2years
Website Design The Website to look up for maintaining and set up a website is by visiting “designqoute.net” The website will cost for about ($19,074 - $25,806) £ 12,289- £16,626 which is worked by Professional Firms.
Website Administrator Gordon Yates Cost of Salary: £25,000 – £30,000 per year
Website Developer The Formations Company Cost of Salary: £30,000 - £35,000 per year
Customer Support Adviser Proactive People Cost of Salary: £18,000 - £23,000 per year
Data Security The Bunker £25.00/year
Total Cost The total cost would be around £94,545.00 you will need to pay first upfront on the list. On the year following that, you will only need to pay for the fees that are annually paid which is £80,545.00. The business is only run online, so the business doesn’t have any placement and employees just work at their respected homes. I would contact them regularly using a video conference software to keep up with the business and what is going on.
Conclusion upon running an online business or not. Upon pursuing an online advice website, it could be beneficial in a way that around the world could access your business. Your business is also open 24/7 in which customers you gain access whatever time they needed help. Online money transactions are also very convenient through the use of the customers debit and credit cards. The cost of running the business online can be quite expensive but a bit cheaper than having branch business deducting the cost for wages, rent, and other fixed cost bills. Just to make sure that customers keeps coming in and income increases to keep the online business up and running. This could be a form of online adverts to different domains and search websites, but this will also increase the cost of maintaining the online business.
Website in helping to achieve the business's aims and objectives The usual common aim of a business is to be successful and well known through out the world. And with the help of the website, this could be attained easily which the internet is accessed all over the world 24/7. All the things needed left is to make the business successful through the objectives by designing the website as it needs to be and as much information about the business so that customers could keep track on what your business does and how does it helps the customers.
