E-Business - Benefits and Limitations
E-business is a type of business in which the commercial transaction involves the exchange of information through the internet. Continue Reading to learn more!
Izhar Ahmad27 Nov, 2023
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E-commerce and online business are similar terms, referring to a business approach where all deals occur through the internet. In such a setting, the contact between buyer and seller is virtual, with no face-to-face talks. The word "e-business" was coined by IBM's marketing and Internet team in 1996 and is a subset of electronic commerce. E-business includes various activities, including the online buying and selling of goods and services, customer service, payment handling, production control management, teamwork with business partners, internet-based information sharing, automatic staff services, recruitment, and more. All these activities are performed smoothly over the internet.
What is E-Business?
Engaging in business operations over the internet or any computer network is termed as e-business or Electronic Business. E-business involves all the economic activities such as trade, commerce and industry. This means that it targets the use of the internet and various computer networks and technologies to enhance customer service, increase sales revenue, and cut down costs. E-business typically utilizes more secure, efficient, and effective computer networks rather than the internet operations.Benefits of E-business
Simplified Establishment and Reduced Initial Investment:
Creating an e-business is straightforward, without the procedural requirements associated with traditional industries. Unlike conventional businesses, it doesn't necessitate investments in physical stores, inventory, or displays. The success of an e business relies more on networking than on financial investments.Flexibility:
E business offers remarkable flexibility. The internet enables business operations 24/7, allowing organizational personnel to work from any location and at any time. This flexibility enables continuous communication between businessmen, customers, and suppliers.Swiftness:
The exchange of information in buying and selling occurs swiftly with internet assistance, merely a mouse click away. This rapidity is particularly advantageous for information-intensive products such as software, movies, music, e-books, and journals, which can be delivered online. Business process transformation reduces cycle time, making the fulfillment of demand quicker, and electronic fund transfers simplify monetary transactions.Global Presence:
E business facilitates national and global operations for sellers through a well-developed computerized network. Buyers and sellers can connect from any part of the world, providing consumers with the option to select products globally.Transition to a Paperless Environment:
The reliance on paperwork and bureaucratic processes diminishes significantly with the use of the internet. Most tasks are electronically managed through computers, reducing red tape. Government bodies and regulatory authorities increasingly employ computers, enabling the electronic filing of returns and reports. This shift contributes to a faster processing of permissions, approvals, licenses, and other bureaucratic procedures.Looking for the Best Commerce Coaching?
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Limitations of E-business
Absence of Personal Interaction:
E business lacks a personal touch, preventing consumers from physically examining products. The inability to feel or touch a product makes it challenging for consumers to assess its quality. In contrast to the traditional model, where interaction with salespeople adds a human and credible touch, e-business misses out on these attributes, impacting customer trust.Delay in Product Delivery:
Unlike traditional business, where products are obtained immediately after purchase, e-business involves a time lag in product delivery. This delay can be discouraging for customers, although efforts are being made to address this issue by committing to shorter delivery times. For instance, Amazon now offers one-day delivery, though this improvement doesn't entirely eliminate the problem.Security Concerns:
E-business is susceptible to scams, and there are heightened risks of hackers obtaining financial details. Security and integrity issues create a sense of distrust among potential customers, posing challenges to the credibility of online transactions.Resistance from People:
Resistance to e-business is prevalent among individuals who experience stress and a sense of insecurity due to the adjustment to new technologies and methods. People are resistant to organizations transitioning into e-business, reflecting a reluctance to embrace the changes in the way things are done.E-Business FAQs
What are the benefits of e-business?
E-business is easy to form, global reach, convenient, speed, and paperless society, among others.
What does e-commerce mean?
By ‘e-commerce’ means the carrying out of electronic business activities, such as buying and selling of goods and services, through the internet.
What are the 4 types of e-commerce?
The four main types of e-commerce are B2C (business-to-consumer), B2B (business-to-business), C2C (consumer-to-consumer), and C2B (consumer-to-business).
What is an example of e-commerce?
Amazon is an example of e-commerce where customers can buy and sell products over the internet.
What are the 10 advantages of e-commerce?
Cost savings, worldwide market potential, open all time, convenient, and fast transactions.
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