Business Research Report

E-Commerce: The future of ABC Corporation.

A look into the features, advantages, and benefits of entering

the online sales arena in today’s retail market.

October 2012

Assessment Code: RWT1

Date: October 21, 2012

Table of Contents

Cover page…………….……………………………………………………………….….1

Table of contents……………………………………………………………………….….2

Executive Summary…………………………………………………………………….…3

Introduction…………………………………………………………………………….….4

Advantages and Disadvantages…………………………………………………………………………….5-6

Potential for Impact...………………………………………………………………….....7-9

Requirements……....………………………………………………………………....…..9-10

Recommendation…………………………………………………………………………11 …show more content…

Potential disadvantages of entering e-commerce were found as well. A major consideration would be the initial investment of setting up a warehouse and shipping operation and securing a wide variety of staffing needs. The largest of these expenditures would undoubtedly be staffing. Web Development, IT personnel, and 24 hour customer service staffing are vital to the success of any e-commerce set up. Initial man hours to create and maintain a website and the computer based infrastructure to support it are factored here. These costs are not projected to be detrimental to the overall profitability of the venture though.

Another disadvantage to being an online retailer is the laws and taxation practices of different states within the U.S., as well those in other countries around the world. Currently there are three federal legislative bills under consideration in the United States that would enable states to require online retailers to collect sales tax. If even one of these bills is adopted the cost of doing business online would increase. Likewise, similar tax laws are intact for some foreign countries. Such practices have the potential to adversely affect ABC Corporation fiscally. Strategic planning and careful price structuring could minimize the impact of the added expense.

A final drawback to an e-commerce business is the cost associated with patenting and