CONTINUATION OF UNIT 12

15. Some changes in distribution that happen recently includes online distribution (e-commerce),
which uses electronic systems to sell good and services.

Two main types of online distribution are:

a. business to consumers (B2C),
consumers order goods online and receives the goods at their home or office. Example of
this:
 bus, train and plane tickets
 cinema, sports match and attractions’ tickets
 holiday trips and hotel rooms
 online film and audio broadcasts (e.g. Netflix, Spotify, etc.)
 goods sold in websites like Amazon, e-Bay, etc.
b. business to business (B2B),
business selling goods and services to other businesses online.

16. Benefits that consumers get from online distributions:

 it’s cheaper because online retailers have lower costs
 consumers can shop 24/7 (= all time all day)
 a lot of choices
 able to shop from anywhere if they have internet access

17. Benefits that businesses get from online distributions:

 e-tailers (= online retailer shops) don’t always have to pay store operating costs
 lower start-up costs including fixed and variable costs
 lower costs when doing transactions because of many automated systems
 less paper is needed for invoices (= faktur) and receipts (= struk belanja)
 payments ca be made and received online using credit cards and digital money (e.g. Ovo,
Dana, etc.)
 B2C business offers goods to a much wider market (e.g. international scale market)
 business has more choice to where they must focus their money on (e.g. product delivery /
machinery / innovation / etc.)

18. Disadvantages of online distributions:

 business faces more competition
 lack of human contact that some consumers like
 rely heavily on delivery services
 lack of control on product quality during delivery
 technical problems online, such as crashed website, slow internet connection, etc.
 hackers may get access to sensitive information
 consumers cannot check on goods directly before purchase
 not every consumer has internet access and credit cards
 bogus (= fake) online traders are hard to track and arrest
 some consumer has problems on taking delivery of goods (e.g. more often at work than at
home, etc.)

19. Recently, people start changing from products to services, e.g. :

a) people used to buy music on CDs, now they listen to music by streaming or downloading via
internet
 b) people used to watch movies on DVDs (buy or rent), now they switch to film channels (e.g.
Netflix, HOOQ, VIU, etc.)
c) people used to buy newspapers and magazines from local shop, now they prefer to subscribe
to online news / infotainment websites

P.S.:
Youtube links are not inserted here because I have explained in the notes in detail what you students
need to know. Besides, even if I add them here, I doubt that what they are saying is going to be
useful for you in your study at school, so to avoid confusion, I won’t insert any links for you.

NO HOMEWORKS THIS TIME.