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E-Commerce and Parts of a Company

The specific part of maturita topic 15 (Services and accommodation), at B2 level: buying and selling online, and how a typical company is organised.

E-commerce

E-commerce (electronic commerce) means buying and selling goods and services over the internet – in online shops (e-shops), on marketplaces such as Amazon or Allegro, through apps or social networks.

Types of e-commerce

TypeMeaningExample
B2C (business to consumer)a company sells to customersan online electronics shop
B2B (business to business)companies trade with each othera firm ordering office supplies
C2C (consumer to consumer)people sell to each othersecond-hand clothes apps, online bazaars
C2Bindividuals sell to companiesfreelancers, influencers

How an online purchase works

  1. The customer browses the product catalogue, uses search and filters and reads reviews.
  2. He or she puts the product into the shopping cart (AmE) / basket (BrE).
  3. At the checkout the customer logs in or orders as a guest, chooses delivery (courier, pick-up point, parcel locker) and payment (card, online banking, digital wallet such as Apple Pay, cash on delivery, “buy now, pay later”).
  4. The payment goes through a secure payment gateway; the website uses HTTPS to encrypt the data.
  5. The customer gets an order confirmation by email, can track the parcel and, in the EU, may return the goods within 14 days without giving a reason.

What a good e-shop needs

A clear and fast website that works on mobile phones (responsive design), good photos and descriptions, simple checkout, several payment and delivery options, customer support (chat, email, phone), security and GDPR compliance, and online marketing – search engine optimisation (SEO), ads, newsletters and social media.

Advantages and disadvantages

For customers: shopping 24/7 from home, a wide choice, easy price comparison and often lower prices – but you can’t touch or try the goods, you have to wait for delivery, and there is a risk of fraud or fake shops.

For companies: lower costs than a real shop, customers from all over the world, data about customer behaviour – but strong competition, the cost of delivery and returns, and the need to protect the site from cyber attacks.

Parts of a company

Types of companies

In English-speaking countries you will meet a sole trader (self-employed person), a partnership, a private limited company (Ltd – similar to the Czech s.r.o.) and a public limited company (plc, or a corporation – Inc. – in the USA, similar to a.s.), whose shares can be traded on the stock exchange.

Structure

A company is usually organised into departments, shown in an organisational chart:

DepartmentResponsibilities
management / board of directorsstrategy and important decisions; led by the CEO (chief executive officer)
finance / accountingmoney, budgets, invoices, taxes, salaries
human resources (HR)hiring new employees, training, contracts, working conditions
production / operationsmaking the products or providing the services
research and development (R&D)new products and improvements
salesselling to customers, contracts, prices
marketingmarket research, advertising, the brand, social media
purchasing / logisticsbuying materials, the warehouse, transport
customer servicehelp for customers, complaints, returns
IT departmentcomputers, networks, software, security and support for the other departments
legal departmentcontracts and legal issues

Other important terms: headquarters (the main office), branch (a local office), employees and their line manager, turnover (the total amount of money from sales) and profit (what is left after paying the costs).

Key vocabulary

EnglishČesky
e-commerceelektronický obchod
online shop / marketplacee-shop / tržiště
to browseprocházet
reviewrecenze
shopping cart / basketnákupní košík
checkoutpokladna (objednávka)
delivery / parcel lockerdoručení / výdejní box
cash on deliverydobírka
payment gatewayplatební brána
order confirmationpotvrzení objednávky
to track a parcelsledovat zásilku
to return goods / refundvrátit zboží / vrácení peněz
responsive designresponzivní design
search engine optimisationoptimalizace pro vyhledávače
fraudpodvod
sole trader / self-employedživnostník / OSVČ
limited companyspolečnost s ručením omezeným
share / shareholderakcie / akcionář
departmentoddělení
organisational chartorganizační schéma
human resourcespersonální oddělení
research and developmentvýzkum a vývoj
warehousesklad
complaintreklamace, stížnost
headquarters / branchústředí / pobočka
turnover / profitobrat / zisk

Useful phrases

  • The customer adds… to the basket and then…
  • The main advantage of shopping online is…, whereas…
  • The… department is responsible for…
  • If I ran an online shop, I would…
  • I’d rather buy… in a real shop, because…

Questions the examiner may ask

Try to answer each question in two or three sentences, then click on the hint to compare.

QuestionHint
What is e-commerce and what types do you know?buying and selling online; B2C, B2B, C2C, C2B
Describe the process of buying something online.browse, basket, checkout, delivery, payment, confirmation, tracking, 14-day return
What should a good e-shop have?responsive design, photos, simple checkout, payment and delivery options, support, security, marketing
What are the advantages and disadvantages of online shopping?choice, prices, comfort vs. no trying, waiting, fraud
What departments does a company usually have?management, finance, HR, production, R&D, sales, marketing, logistics, customer service, IT, legal
What does the IT department do?hardware, networks, software, security, backups, user support
Would you like to run your own business? Why / why not?own opinion – freedom vs. risk and responsibility