This unit is about how to shop for the business using online provid

Shopping Online

Lonsdale Institute
BSBITU315 Purchase goods and services online

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BSBITU315 Purchase goods and services online

Contents
Introduction........................................................................................................ 2
Identifying suitable suppliers online....................................................................3
To review or not to review?.............................................................................6
The dangers of online shopping.......................................................................7
Making the purchase or order online..................................................................9
What do I look for?...........................................................................................9
Now what do I do?...........................................................................................9
Maintaining records of online transactions.......................................................10
How to Pay online..........................................................................................10
How to Resolve Payment Issues?...................................................................12
What is PayPal?..............................................................................................12
Records of records.........................................................................................13
Reconciliation.................................................................................................13
Keeping it quality...............................................................................................13

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BSBITU315 Purchase goods and services online

Introduction

This unit describes the skills and knowledge required to use e-commerce to procure goods
and services in a business context. This includes the ability to undertake a range of online
buy-side transactions, including banking, and purchasing products and services.

There are 3 main steps to successfully purchasing goods online for a business.
By working through these steps, you can make sure that your purchases are safe and that
the business has the records its needs to make sure they are getting what they paid for.

Finding the
best supplier

Making the
order and
paying

Keeping the
right records

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BSBITU315 Purchase goods and services online

Identifying suitable suppliers online

With so many online suppliers out there now, it’s difficult to know where to start when
deciding who to use.

Sometimes there are only a few who can supply what you need, but
sometimes there are many and when you can’t pick up the goods to look at them and
compare, what is the best way to choose?
We also need to remember that buying for the business is a little different to buying for
ourselves.

When you are buying for yourself what are the main
things are looking for from your online provider?

List the three main things here

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When you are buying for a business, what things

would you need from a supplier? See what
differences there are.

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BSBITU315 Purchase goods and services online

__________________________________________________________________________________
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We still want the best product and the most reliable service, but when it’s for the company
there may be time restrictions, delivery time problems, or you often need a lot of product
rather than one and it is usually more important that the business gets what you order the
first time because there will be other people depending on its arrival so that they can keep
working.
So we have to have a selection system that addresses all the business needs

Identify purpose for goods or services

to be procured

Conduct research to identify potential

suppliers of required goods/services
by accessing a range of digital
sources/marketplaces

Assess service provider confidentiality,

security and privacy facilities in
accordance with individual and
organisational requirements

Assess potential products/services for

authenticity

Select most appropriate supplier of

goods/services, in accordance with
organisational budget, policies, and
procedures

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BSBITU315 Purchase goods and services online

There are lots of reasons that business buying is different to personal buying but it just
means that what you may be looking for from a supplier is different – as long as you
recognise this when you are researching, then you can make the best choices.
So, for business purchasing online, let’s look at the steps you should follow to identify the
best supplier.

Here is a quick checklist to help when you are deciding who to use

1. Find out what the goods or services are that you need to buy

2. Find providers that offer to sell you the items online.

3. Have a look at the information that each provider asks for, and how do they keep
your information private and secure

4. Check that what they are saying you are getting is real

5. Then select the best provider for your

company

To review or not to review?

The Importance of Online Customer Reviews

By Khalid Saleh

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BSBITU315 Purchase goods and services online

How important are customer reviews to shoppers?

Very important, as it turns out.
The fact is, 90% of consumers read online reviews before visiting a business. And
88% of consumers trust online reviews as much as personal recommendations.
We’ve got many more fun, interesting facts that’ll help you see why your customer
review is so important to other shoppers! Check out our infographic, “The
Importance of Online Customer Reviews”, to read more facts. Enjoy!
https://www.invespcro.com/blog/the-importance-of-online-customer-reviews-infographic/

Select 3 different online providers for a product and find and compare reviews of each.
Based on the reviews, who would you select to buy from and why?

The dangers of online shopping

No matter how good the reviews are, you always need to be careful….

Top 5 Dangers of Online Shopping and Precautions to Take On Cyber Monday

Abe Garver Contributor
https://www.forbes.com/sites/abegarver/2012/09/11/the-top-five-dangers-of-online-shopping-
precautions-to-take/#505dcf93cf2d

#1) Fake Online Reviews - A collection of five-star ratings can do amazing things for online
sellers. As a result, some authors have confessed to posting
fake reviews; see “Fake Reviews: Amazon’s Rotten Core”.
Others are now offering a refund to customers, in exchange for a
write-up; see “For $2 a Star, an Online Retailer Gets 5-Star
Product Reviews”.

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BSBITU315 Purchase goods and services online

Ways to Reduce Your Risk

 Be skeptical of reviews that lack detail, or are too positive. Social media sites
like Facebook, Twitter, and Yelp may provide a stronger, direct relationship to
people’s opinions.

 Check the source. Does it link to the reviewer's profile and previous reviews, or a
social media page that shows the reviewer is real?

 Finally read reviews on multiple platforms (e.g. Amazon and epinions.com).

#2) Lack of Full Cost Disclosure – Additional fees like

shipping, may be hidden until late in the checkout
process. For example, I was recently stung
by Consumer Reports’ price comparison engine after
it suggested that the best place for me to buy a
laptop with free delivery was TigerDirect.com, which
is owned by Systemax. When I neared the end of the
purchase process, the fine print said I’d have to
spend $49.99 on a year membership, to get the
“free” shipping. What’s worse, I then learned it would cost $189.99 more for Microsoft’s
software. This meant the actual cost was 20% greater than I was lead to believe.

Ways to Reduce Your Risk

 Remember there is “no free lunch”, in other words you’re going to pay for delivery
one way or the other.

 Don’t expect software to come with the computer.

#3) Counterfeit Goods – Even Jeff Bezos' Amazon is

having difficulty keeping counterfeits off its site.

Ways to Reduce Your Risk

 If the price is too good to be true, it probably is.

 Research the third party seller or website you are buying from. Don’t be afraid to ask
lots and lots of questions.

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 Finally, trust your gut.

#4) Order Never Arrives – Each time I’ve shopped on Amazon.com or Walmart.com, my
order has arrived on time. Given the amount of business both companies do, I'm sure
everyone won't be as lucky. I believe the likelihood of an order not arriving, increases when
third party sellers become involved.

Ways to Reduce Your Risk

 Size matters. When shopping, stick to Top 500 Internet Retailers.

#5) Identity Theft - According to The US Department of Justice, identity theft and fraud are
terms used to refer to all types of crime in which someone wrongfully obtains and uses
another person's personal data in some way that involves fraud or deception, typically for
economic gain. For example, if someone steals your debit card number, your entire checking
account is exposed. Within minutes, identity thieves can drain your account and set you
back financially for years.

Ways to Reduce Your Risk

Just remember the word “SCAM”.
 Be (S)tingy about giving out your personal
information to others unless you have a
reason to trust them, regardless of where you
are.
 (C)heck your financial information regularly,
and look for what should be there and what
shouldn't.
 (A)sk periodically for a copy of your credit report.
 (M)aintain careful records of your banking and financial accounts.

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BSBITU315 Purchase goods and services online

Making the purchase or order online

Once you have selected who you want to make the purchases from, your next task is in
getting through the booking process on line. You will need to be sure that the information
you are giving them is protected, and that there are options so that you can make report
problems if they happen.

What do I look for?

Place the purchase order

Engage with supplier in a Identify what risks there
with the relevant
professional and are in the digital transfer
supplier using
appropriate manner via of information and take
appropriate online
the relevant online steps to ensure that
functions to obtain
platform information is secured
required goods/services

Make the payment or receive an

Report any difficulties in
invoice to complete the transaction
accessing or using online
in accordance with the terms of
facilities to the supplier
online transaction and your
as required
business’s policies and procedures

Now what do I do?

Using a site that you are familiar with - without actually making the purchase! - go through
the booking process and note the following things:
1. What information do you have to provide?
2. Read their Privacy Statement to see how your information is protected
3. How easy is it to follow the purchasing steps?
4. Can you see how you would report any difficulties you were having to the supplier?
5. What options are there to make payment?

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Maintaining records of online transactions

Once you are confident of the provider and the booking, you need to make the payment.
There are always checks that need to be done before clicking that final button
- Have I entered the right number of items?
- Did I order everything as needed?
- Am I sure the order will be here by the time it’s needed? Etc. etc.
But the process of actually paying can be just as time consuming, so be ready with your
payment information and details.

How to Pay online

https://www.thebalance.com/how-to-pay-online-with-a-credit-card-961017

4 Simple Steps to Paying Online with a Credit Card

•••
BY LATOYA IRBY
Updated January 23, 2019

These days, almost any transaction that you'd make in person,

you can make online without ever having to leave your home.
While making online purchases is much more convenient, it does require you to have a
major credit card, debit card, or a major-branded prepaid card or gift card. Checks are
seldom accepted, and cash is definitely not an option. If you don’t make online purchases
often, completing the transaction can be confusing the first few times. Here are some
instructions for paying online with a credit card.

Before You Make the Purchase

Fill your shopping cart by clicking “Add to Cart” or “Add to Bag” on each item you want to
purchase. When you’re done, click the “Checkout” button (it’s usually in the upper right part
of the screen). You may have to click on the shopping cart first and then select the option to
check out. Review your cart to be sure you've added the correct amount, sizes, and colors of
the items you want to purchase. Then, you can begin the purchase process.

As with all credit card purchases, make sure you have enough available credit on your
account before completing the transaction. Otherwise, your transaction could be declined
and you'll have to find another payment method. And, if you haven’t used the credit card in
a while, you also need to be sure it’s active.

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4 Steps to Pay Online with a Credit Card

Once you’re on the checkout page, you’ll have to enter several pieces of information to
complete the transaction.

Enter Your Shipping Address

The shipping address allows the merchant to calculate
your shipping price and update your purchase total.
Make sure you enter the address to where you want
the order shipped, even if it’s different from the billing
address – where you receive your credit card
statements.

Select Credit Card as Your Payment Method

There will also be an option to choose the type of
credit card you’re using, e.g. Visa, MasterCard,
Discover, American Express, or a store credit card.
If your credit card processor isn’t listed in the box,
the merchant doesn’t accept that type of credit
card. You’ll have to use another type of credit.
Enter Your
Name as It
Appears on Your Credit Card
Look at the credit card to verify that you’ve entered
your name correctly. Then, enter your credit card
information: the credit card number, expiration
date, and security code. For Visa, MasterCard, and
Discover, the three-digit security code will be
printed on the back of the card after the credit card number. The four-digit security code for
American Express credit cards is printed on the front-right of the card, directly above the
credit card number.
If you’re using a store credit card, that’s not co-branded with a major credit card company,
you will not be asked for a security code.

Enter the Billing Address for Your Credit Card

This is the address at which you receive your credit card
statements. Note that this address may be different from the
shipping address, for example, if your statements are
received at the post office but you’d like your order shipped
to your home or if you’re having the order shipped to
someone as a gift. The billing address must be entered
correctly for your credit card transaction to go through.
Check your credit card statement if you're not sure of the
exact billing address.

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How to Resolve Payment Issues?

If your credit card is declined, verify that

you’ve entered each piece of information
accurately: your name, billing address, and credit
card details. Even something as minor as
transposed numbers can cause an error with the
transaction.

You may have to use another credit card if card continues to be declined even after you've
verified all the information is correct.

Should You Save Your Credit Card Information?

Many online merchants allow you to create a profile with a username and password and
store your credit card, shipping, and billing information. It allows you to make future “one-
click” purchases with the credit card details you’ve saved.

You can save time on future purchases since you won’t have to re-enter your payment
information (unless it changes). On the downside, it makes it easy for you to make impulse
purchases or for someone with your login details to make purchases without having your
credit card information.

What is PayPal?

Using PayPal as a Payment Alternative

Instead of entering your credit card information directly, you can use PayPal for payment
processing. Before you can use PayPal for checkout, you’ll have to create an account and
register your credit or debit card. Then, when you're ready to make a purchase, select "Pay
with PayPal" as the payment option. You'll enter only your PayPal username and password,
and PayPal will process the transaction with the payment information you have on file.
Note that not all online stores accept PayPal.

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Records of records
Finally, you need to keep records so that EVERYTHING can be checked – it’s a good idea to
do this for your personal shopping too!
So, you will need to find out what sort of records and how the business need them to be
kept.
Some businesses have accounts departments, some need emails sent to confirm details –
whatever the policy or procedure for your business, you need to know what it is and keep
the records accordingly.

Reconciliation
Reconciliation is about making sure that records match when they are compared.
This process helps to identify problems early and to make sure that what you thought was
happening actually did happen.

Maintain banking and other Compare organisational records

records of transactions in with online records and deal with
accordance with organisational irregularities according to
policy, procedures and level of organisational policy and
authority procedures

Keeping it quality
Once everything has arrived, do a final check of the whole process for future
recommendations. Review the goods/services obtained, assessing quality, timeliness, and
level of customer service.

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