Electronic business motivates the use of data and statement technology to enable the external activities and dealings of the business with entities, groups, and other companies. At the same time, e-business refers to trade with the help of the Internet. The electronic industry differs from electronic commerce as it does not only deal with online connections of selling and buying a product and service but also enables the conduct of business procedures (inbound/outbound logistics, manufacturing & processes, marketing, and sales, customer deals) within the value chain through internal or external systems. The term “e-business” was invented by IBM’s marketing and Internet team in 1996.
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Electronic business is also known as online business. Any business or commercial transaction includes sharing information across the Internet. Commerce creates the exchange of goods and facilities between businesses, groups, and entities and is one of the essential activities of any business.
Different types of electronic business
Sellers propose products and services directly to consumers online, and the buyer purchases them through the Net.
Companies use the Net to conduct transactions with one another. Different B2B transactions usually involve multiple online transactions at each supply chain step.
Consumers create their prices and demand for goods and services. It includes the reverse online sale and airline ticket websites such as Priceline and Expectation.
Consumers are buyers and sellers through third-party-facilitated online marketplaces such as eBay. These models create income through personal adds fees, charges for memberships and contributions, and transaction fees.
Merits of Electronic Business
Easy to established
Electronic business is accessible to establish even from home. The only necessities are software, a device, and a net linking.
Flexible business hours:
There are no time barricades that a location-based business can encounter since the Internet is always available to everyone. Everyone with an internet connection can edit your products and services.
Cheaper than traditional business:
Electronic business is less expensive than a traditional business but more classy to set up. Transaction costs are also cheaper.
No geographical boundaries:
The most significant benefit is the possibility of geographical spreading. Anyone can order whatever from any place at any time.
The government encouragingly inspires digitalization, and it provides the necessary support.
It has a great potential to allow an entry into a previously unknown market that a traditional business could not.
Lower levels of inventory:
The electronic business allows companies to lower their record level by digitalizing their assets.
Lower costs of marketing and sales:
E-commerce allows the industry actors to advertise their product/service offer at generally lower costs than by sponsoring their business.
Demerits of Electronic Business
Lack of individual touch in electronic business
The products cannot be inspected or handled before the final purchase. We have a more personal customer experience with the outdated model, which is mostly not the case in the electronic business. Another missing reason for personal touch could also be in online transactions.
Traditional business certifies instant fulfillment as you obtain the product the moment you purchase it, which is impossible in the electronic industry. There will always be a waiting passé before you receive the product. For example, Amazon assures one-day delivery. It does not resolve the issue entirely, but it is an improvement.
Security issues :
Cheats could be a factor in people’s distrust of electronic business. Hackers can quickly get customers’ financial and personal details. Some customers still find it hard to trust electronic enterprises because of the lack of security, consistency, and honesty.
In the above article, E-Business, we have discussed some essential points like its function, drawbacks, benefits, and more. If you want to know more, please visit our web site.
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