Fig. 1.1 shows the share of mobile retailing sales as a percentage (%) of all online sales in a country for 2017–2021. [Figure 1.1] Use Fig. 1.1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (May/June 2023). The mark or mark type is shown in brackets.

1. [2] Buying/selling goods (1) using a smartphone/mobile phone/computer/website/internet/ecommerce/tablet/app/electronic device/devices (1)
2. [1] Correct answer = 19.4%
3. [4] Credit card (1) buy goods now but postpone payment until later/can pay amount up to credit card limit/enters credit card details/can use phone/internet banking (1)
4. [4] Debit card (1) pay for goods with money direct from current account/enter debit card details/immediate payment/instantly from bank account/need to have sufficient funds in account to make payment (1)
5. [4] Cash on delivery (1) payment for goods when they arrive (1)
6. [4] Wire/electronic transfer/bank transfer/credit transfer/virtual cards (1) computerised/direct transfer of funds/paying by phone/from one bank account to another bank account (1)
7. [4] Mobile/digital wallet/mobile banking (1) using payment details of credit or debit card or payment by app (1)
8. [4] Internet/online banking (1) payment by credit or debit card or payment apps or e.g. such as PayPal (1)
9. [4] Direct debit (1) give creditor permission to take money from account (1)
10. [2] As online sales increase, distribution costs increase.
11. [2] Consumers are more likely to be attracted to a website by free returns.
12. [6] Ecommerce warehousing is the process of storing goods before they are sold online. Online retailers sell goods using the internet and require more logistics space than traditional retailers.
13. [6] Goods are stored – to meet demand/waiting for delivery/transport
14. [6] Protection/safety – from damage/theft/weather
15. [6] To help in stockpiling – act as a reservoir ahead of demand
16. [6] Enables goods to be bought in bulk – at lower prices/needs large space
17. [6] Place for processing to be carried out – e.g. packaging/branding/labelling – will help with transporting/advertising
18. [6] To even out supply – so prices are kept stable
19. [6] Online sales have increased – global demand
20. [6] To meet unexpected demand – for example, 3D printers so consumers are not disappointed
21. [6] Warehouses can be expensive for online retailers – adds to their costs/lower profit margin
22. [6] Evaluation: To an online retailer, warehousing is a critical piece of the supply chain. A good e-commerce warehouse can keep their customers happy. Online customers expect to receive their orders delivered to them quickly. This can increase customer loyalty, and makes the online retailer more attractive to potential buyers. Overall, whether a large distribution centre or a small urban warehouse, the warehouse is very important to be able to cope with the demand volatility imposed by online orders, such as the need to deal efficiently with speedy shipping and the increasing number of online returns.