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COMMERCE THE WAY GO

There was a small family-owned bookstore in a community. The stors had been beloved local spot for decades, bu as the years went by, fewer people visited. The rise of digital technology and online shopping has changed the war people bought books. The owner was determined to keep the bookstore allive One evening online. The owner was hesitant at first, but the granddaughter explained the tech-savvy granddaughter suggested they take the bookstore potential of e-commerce. She showed him how they could reach customers far beyond their city and even across the globe

[Adapted from: saferspaces. org.za. Accessed on 05 July 2025)

2.2 Differentiate between E-commerce and traditional business.(2+2) (4)

2.3What are the advantages of E-commerce for businesses?(2x2) (4)

2.4Discuss the impact of E-commerce on the economy of the country?(2x2) (4)

2.5Examine how security concerns in E-commerce can be addressed?(2x3) (6)

1 answer

2.2 Differentiate between E-commerce and traditional business.

  • E-commerce refers to buying and selling goods and services over the internet. It allows businesses to operate online, enabling customers to shop from anywhere at any time without the need to physically visit a store. Transactions are processed electronically, and businesses can reach a global audience.

  • Traditional business, on the other hand, involves physical storefronts where transactions occur face-to-face. Customers must visit the location to purchase goods, and businesses are typically limited to a local or regional market. Traditional businesses rely on brick-and-mortar establishments and may engage in direct marketing and local advertising.

2.3 What are the advantages of E-commerce for businesses?

  • Wider Reach: E-commerce enables businesses to reach a global audience, allowing them to expand their customer base beyond local limitations. This increases their potential for generating sales and revenue.

  • Lower Operating Costs: Operating an e-commerce platform often incurs lower costs compared to maintaining a physical storefront. Businesses save on rent, utilities, and in-store staff, leading to increased profit margins.

2.4 Discuss the impact of E-commerce on the economy of the country.

  • Job Creation: The growth of e-commerce has led to the creation of new job opportunities, ranging from logistics, IT services, digital marketing, and customer service roles to those in warehousing and distribution.

  • Economic Growth: E-commerce contributes to overall economic growth by facilitating trade and increasing the flow of goods and services. It allows small and medium enterprises (SMEs) to operate more effectively, stimulating competition and innovation within the market.

2.5 Examine how security concerns in E-commerce can be addressed.

  • Encryption Technologies: Employing encryption technologies, such as SSL (Secure Socket Layer) certificates, can help secure sensitive customer data during online transactions. This ensures that information like credit card details is transmitted safely over the internet.

  • Regular Security Audits: Conducting regular security audits and vulnerability assessments can help identify and mitigate potential security risks in e-commerce platforms. Businesses can stay ahead of cyber threats by updating their security measures and protocols accordingly.

  • Two-Factor Authentication (2FA): Implementing two-factor authentication adds an extra layer of security to customer accounts, requiring users to provide two forms of identification before accessing their accounts. This helps protect against unauthorized access and breaches.