Task 2. Read and translate the given text orally.
Picture 5.2
Online Shopping
Everyone has noticed the mammoth impact technology has had on business. Although all facets of the business world have been affected in some way, one seems especially supportive by the public—the shopping industry. Consumers are spending more of their time…and money…without ever leaving the comfort of their own homes. Although many people still like to spend a day at the mall and prefer to see items before they buy them, online shopping has become a major player in the retail world with more and more people joining
the ranks as Internet shoppers.
Consumers can buy almost anything via the Internet and electronic sales appear unstoppable. According to the U.S. Census Bureau, American consumers spent 32.2 billion at online retailers in the third quarter of 2007. Amazingly, that jumped just over one percent from the second quarter of 2007 and increased a whopping 18.9 percent from the same time period in 2006. What a difference a year makes!
Clearly, electronic shopping is becoming more and more popular. However, it isn’t just about buying from a retailer. Consumers can play the role of the seller as well. One of the more popular sites that allows the consumer to be the retailer is eBay.com. The online shopping website enables people to participate in auctions to sell items. The site was originally founded in 1995 and has become a major player in the world of online business. Although it started in San Jose, California, eBay now has localized websites around the world. Some countries with their own eBay sites are Canada, Malaysia, and Turkey. Consumers can buy and sell hundreds of different items like appliances, books, computers, clothing, cosmetics, and even cars.
The online auction business model is successful. Other sites that have adopted this business model include Amazon.com, Overstock.com, and uBid.com. Success could be attributed to a variety of factors. Consumers are not constrained by time or geography. The auction lasts for days and bidders can shop any time, day or night and they can shop from anywhere in the world as long as they have access to the web and a computer.
Online shopping in general has its advantages and disadvantages. Online stores, like the auctions, are available around the clock. People can shop from home or work whereas a visit to the mall requires consumers travel via some form of transportation and forces them to visit the stores during the stores’ business hours. Physical stores aren’t necessarily losing business. It’s simply far more convenient to click on an item on the store’s website.
However, when shopping in person, the consumer can actually examine the item before they purchase. Shopping online forces the consumer to be
dependent on pictures and text descriptions. Online shoppers have the advantage of comparing competing stores without driving to the actual stores, but visitors to a physical store don’t face the same security and privacy concerns.
Whether it is an auction or a simple sale, whether it is an online click or a visit to a store, and whether it is full price or on sale, the online retail business world is very popular.
Task 3. Define these business terms based on what you read in the main reading.
a. **Business model** - A business model refers to the framework or plan that outlines how a company intends to generate revenue and sustain its operations. It encompasses various components such as the products or services offered, target market, revenue streams, distribution channels, and cost structure.
b. **Sales** - Sales refer to the process of exchanging goods or services for money or other valuable considerations. It involves activities such as prospecting, contacting potential customers, presenting products or services, negotiating terms, and closing deals. Sales are crucial for generating revenue and driving the growth of a business.
c. **Factors** - Factors are elements or variables that influence a particular outcome or decision within a business context. These can include internal factors such as company resources, capabilities, and strategies, as well as external factors like market conditions, competition, economic trends, and regulatory environment. Understanding and effectively managing these factors are essential for the success of a business.
d. **Consumer** - A consumer is an individual or entity that purchases goods or services for personal or business use. Consumers play a central role in the economy by driving demand for products and services. Understanding consumer behavior, preferences, and needs is critical for businesses to develop successful marketing strategies and deliver value to their target market.
e. **Profits** - Profits represent the financial gain or net income earned by a business after deducting expenses from revenue. It is a key indicator of business performance and sustainability. Profits are essential for reinvestment in the business, rewarding shareholders, and supporting growth initiatives. Businesses strive to maximize profits through efficient operations, effective cost management, and revenue generation strategies.
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