Advantages and disadvantages of E-business.

 E-business 

Online Business or e-business is any kind of business or commercial transaction that includes sharing information across the internet. Electronic business differs from electronic commerce as it does not only deal with online transactions of selling and buying of a product and/or service but also enables to conduct of business processes (inbound/outbound logistics, manufacturing & operations, marketing and sales, customer service) within the value chain through internal or external networks. The term "e-business" was coined by IBM's marketing and Internet team in 1996. (Wikipedia)

Advantages of E-business 

When looking at e-Business we have many advantages, which are mostly connected to making doing business easier. The benefits of implementing e-Business tools are in the streamlining of business processes and not so much in the use of technology. Here are some:

a) Easy to set up: electronic business is easy to set up even from home, the only requirements are software, a device, and an internet connection.

b)Flexible Business Hours: There are no time barriers that a location-based business can encounter since the internet is available to everyone all the time. Your products and services can be accessed by everyone with an internet connection.

c) Cheaper than Traditional Business: Electronic business is less costly than a traditional business, but it is more expensive to set up. Transaction costs are also cheaper.

d) No Geographical Boundaries: The greatest benefit is the possibility of geographical dispersion. Anyone can order anything from anywhere at any time.   

e) Government Subsidies: Digitalisation is very encouraged by the government and they provide the necessary support.

f) Newmarket entry: It has a great potential to enable an entry to a previously unknown market that a traditional business could not.

g) Lower levels of inventory: Electronic business enables companies to lower their level of inventory by digitalizing their assets. (i.e.: Netflix does not sell any more physical DVDs but proposes online streaming content instead).

h) Lower costs of marketing and sales: E-commerce allows the actors of the industry to advertise for their product/service offer (i.e.: house rental) at generally lower costs than by promoting physically their business.       (Wikipedia)

Disadvantages of E-business 

Despite all the advantages, there are also some disadvantages that we need to address. The most common limitations of electronic business are:

a) Lack of Personal Touch: The products cannot be examined or felt before the final purchase.  In the traditional model, we have a more personal customer experience, while in the electronic business that is mostly not the case. Another missing factor of personal touch could also be in online transactions.

b)Delivery Time: Traditional business enables instant satisfaction as you obtain the product the moment you purchase it, while in electronic business that is not possible. There will always be a waiting period before you receive the product. For example, Amazon assures one-day delivery. This does not resolve the issue completely, but it is an improvement.

c)Security Issues: Scams could be mentioned as a factor for people's distrust in electronic business. Hackers can easily get customers' financial and personal details. Some customer still finds it hard to trust electronic businesses because of the lack of security, reliability and integrity issues.     (Wikipedia)

                 

                                 OR,

    E-business

• It is the activity of doing business electronically
• The effective use of information technology enables businesses to perform many business activities quickly and easily
• The most common form of e-business uses web technology
• Web sites are used by businesses for many different purposes

 E-business Tools

A wide variety of technological tools are used in e-business including:

• Web Sites
• Online Forms
• Databases
• Spreadsheets
• Video Conferencing
• Scheduling Software
• Ordering Systems

 E-business Activities

The following are examples of e-business activities:

• Communicating via (customers, employees, clients)
• Online ordering of products and services
• Selling products or services through a website
• Providing information about products and services through a website
• Providing product support through a website
• Researching on the Web to find information (prices, phone numbers, products, and industry trends)
• Managing information within the business
• Conducting financial transactions using online banking and electronic funds transfer

 E-business Advantages

• E-Business has enabled businesses to establish new ways to make money

• Businesses also use e-business tools to connect people (they can work more closely with their partners, suppliers, and customers)

• By employing e-business systems, they can link their internal and external processes together more efficiently and flexibly

• An online purchasing system will be much faster, more efficient, and less error-prone than older paper-based purchasing systems

• Online payment gets the money to the business much faster and with fewer problems

                         OR,

E-business

 E-business is the application of information and communication technology in support of all the activities of the business. E-Business is defined as the conducting of business transactions over electronic networks instead of paper, and telephones. E-Business uses technology to improve four business processes. This includes managing internal processes such as human resources, the financial and administrative systems as well as external processes such as sales and marketing supply goods and services, and customer relationships.

Activities using e-business 

• Website marketing 
• Online communication such as e-mail 
• Online training for staff 
• Use of the internet for conducting research and managing business activities
• Providing servicing throw online to the customer.

E-Business tools:-Mobile phone, Electronic data change, File transfer, Video conferencing, Call conferencing.

Advantages of E-business

a) Cost-Effective Marketing: With an e-business, all of your marketing efforts end with one goal to drive target traffic to your business website. With one central place to send customers & your e-business website it allows you to use many online marketing tactics including email marketing, article marketing, social media networking, and e-newsletters. Most of these online marketing efforts are very low cost or free, so an e- business allows for highly cost-effective marketing strategies.

b) Flexible Business Hours: E-business breaks down the time barriers that location-based businesses encounter, according to e-commerce Education. Because the Internet is available 24 hours a day, seven days a week, your business never closes. An e-business can literally be making money while you are fast asleep. 

c)Eliminates Geographic Boundaries: An e-business also allows you to broaden your reach. An online business can reach customers in the four corners of the Earth. As long as someone has an Internet connection, you may be able to reach and sell your product or service to these visitors to your business website.

d)Reduces Transaction Cost: Running an online business reduces the cost per transaction because it takes less manpower to complete an online transaction. Once you get your website up and running, the customer places the order online, which removes the need for a salesperson. The customer payment goes through your online payment processing software or system. Someone has to download the order and ship and make payment.

e)Low Overhead Costs: Running an e-business cuts back or out most of the costs involved in running a physical location. E-businesses have less expensive phone, rent and utility bills than businesses with physical locations. An e-business also reduces the cost of paying employees because you do not need someone in your business.

Disadvantage of E-business

Lacks Personal Touch Not that all physical retailers have a personal approach, but I do know of several retailers who value human relationships. As a result, shopping at those retail outlets is reassuring and refreshing. Clicking on "Buy Now," and piling up products in virtual shopping carts, is just not the same for me. different people sing to different tunes. The demise of the personal touch in online transactions can be the biggest disadvantage of e-business are:-

a)Delays Goods: Unless you are using a website to merely order a pizza online, e-commerce websites deliver take a lot longer to get the goods into your hands. Even with express shipping, the earliest you get goods is usually "tomorrow" (with the exception of some Amazon services). 

b) Many Goods Cannot Be Purchased Online: Despite its many conveniences, there are goods that you cannot buy online. Most of these would be in the categories of "perishable" or "odd-sized." Think about it, you cannot order a popsicle (also referred to as an ice pop or ice lolly) or a dining table set. Well, you could order both of them online, but consider the inconvenience. The popsicle would have to be transported in refrigerated trucks.

c) Anyone Can Set Up an e-Commerce Website: We live in an era where online storefront providers bring you the ability to set up an e-commerce store within minutes. I have tried it, and it is possible to set up a basic store in under 10 minutes. But if anybody can set up a store, how do I know that the store I am purchasing from is genuine? 

d) Security: When making an online purchase, you have to provide at least your credit card information and mailing address. In many cases, e-commerce websites are able to harvest other information about your online behavior and preferences. This could lead to credit card fraud, or worse, identity theft.

Benefit of E-Business

• Increase Sales
• Reduce Marketing Cost
• Low Cast
• Accessible
• Communication

Why E-Business

• Lack of time in public or consumer
• Flexibility in timings for payment
• Easy delivery at doorsteps
• Planning for payment
• Safe transactions