Business Studies on Benefits of Online Shopping


Parker plastics began its operation in the year 1998. It is a plastic container manufacturing company that provides plastic packaging solutions to its customers and other companies. The company is located in the USA with its headquarters in the Lower Lake in California. The company has its branches located in various parts of the USA. Because it has a high number of customers, both distributors and other manufacturing company, the management has a problem when it comes to the receiving and delivery of the orders from the customers. This is because the company has to make several delivery processes that increase in the logistic cost of the company.

In addition, there are always long queues of customers at the company location that want to make orders. The problem that the proposal aims to solve is to reduce on the logistics that the company has to arrange and eliminate the idea of customers coming to the company location to make their orders. Online systems also aim at reducing the process of the employees having to go to the location of the customers to collect the payment checks for made orders.  The proposed system also has the potential to eliminate the need for advertisement agents.

Problem statement

            This study aims at investigating how Parker Plastic Inc will benefit from implementing the online shopping technology. The purpose is to explore on the various available benefits that the company will have in the use of online shopping and how effective the technology will be dealing with the current managerial and other problems facing Parker Plastics. Currently, the management of the company has problems in dealing with the logistics as regards to its ordering and delivery process. These problems have slowed down the operations of the company and as a result negatively impacted the company’s income generation.

H0: Online shopping technology helps manufacturing companies increase revenues, lower costs arising from business operations as well as improve customer service delivery management.

Literature review

Windham (2000) explains that online shopping helps a company reduce on a number of expenses. He purports that with the online shopping, it is possible for a company to manage the logistics effectively by choosing the best routes that will reduce on the logistical movements and hence reduce the delivery costs. Lee (2001) further supports online shopping by stating that online infrastructure simplifies the ordering process; customers can make their order from any location without having to go to the company’s physical location.

Research Methodologies and methods

This research assumes that it will interview the major employee of the manufacturing companies that are using the online shopping. It will interview 3 employees from each company using online shopping that in the same industry as Parker. In addition, the research plans to conduct secondary source analysis to figure out how significantly online shopping reduces the number of logistical movements that a company makes. The companies analyzed will be the ones that have fully integrated e-commerce in their operations. The criteria for selection will be the years of online experience, with those with greater experience selected. The variables examined will represent the areas where the research measures the benefits of online shopping.

Ethical issues and considerations

            Carrying out the research will be faced with some ethical issues. Some of the company employees may refuse to cooperate. This is because  they may feel that giving out some of the company information will be a threat to the company operations. To address this concern, the questionnaire include a confidentiality clause, to reassure respondents that the research materials will not be disclosed to any third party without their formal consent.

Research timetable

Task Duration
Selection of the companies that use online shopping 2 weeks
Collection of research materials 1 week
Distribution of research materials 4 days
Conducting the research 2 weeks
Analysis of findings 1 week
TOTAL 6 weeks and 4 days


Problems and limitations

Carrying out the research will involve some problems and limitations. First, some companies may not be willing to allow another company to come and interview its employees because of confidentiality issues. In addition, it may be difficult and expensive to travel to  some of the companies because of their distant location.



Lee, O., & Ebrary, Inc. (2001). Internet marketing research: Theory and practice. Hershey, Pa: Idea Group Pub.

Windham, L., & Orton, K. (2000). The soul of the new consumer: The attitudes, behaviors, and preferences of E-customers. New York: Allworth Press.