WHAT IS E-BUSINESS?
According to PC Magazine Encyclopedia, e-Business is doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence of the Web. An e-business site may be very comprehensive and offer more than just selling it's product and service.
According to The National B2B Centre, e-business is the term used to describe the information systems and applications that support and drive business processes, most often using web technologies. E-business allows companies to link their internal and external processes more efficiently and effectively, and work more closely with suppliers and partners to better satisfied the needs and expectations of their customers, leading to improvements in overall business performance.
PROS OF E-BUSINESS
1) Better Customer Service.
- E-business has greatly contributed to improvement in customer service.
There are many websites that greet the customer with a pop-up chat
window. A readily available customer service makes it easier for the
customer to know about the product and the service well in advance.
Above all, payments can be made online and the product is transported to
the customer without causing any botheration.
2) Low Costs
- The cost of conducting business online is much smaller than traditional forms of business communication. Start-up costs of starting an e-business are low.
3) Highly Accessible.
- The internet never sleep. Business can operate 24 hours a day, 7 days a week, 365 days a year.
4) Improved Information Content.
- In the past, customers had to travel from store to store to compare prices, items with various retailers.With the internet, it has made price comparison, and product comparison much easier and simpler.
5) Increase Convenience
- E-business automates a lot of processes that in the past had to be done manually, which would take much longer than the now fast automated processes.
6) Increase Global Reach
- Businesses of any size have the capability to reach people from all over the world, to expand to new markets, and to cater to specific subcultures.
7) Increase Customer Royalty
- Additional channels to contact, respond to, and access customers helps contribute to customer royalty.
CONS OF E-BUSINESS
1) Protecting Consumers
- Consumers must be more aware of illegal goods, harmful goods, insufficient information about goods and their supplier, privacy violation, scams and more.
2) Increase Liability
- E-business exposes unknown liabilities, especially when dealing with global businesses from different countries, as different countries have different laws and codes of conduct online. This has caused many ethical, legal, and other issues.
3) Providing Security.
- Accidental or malicious leak of information is much easier and much more likely to happen now with the technology age, which could leave people's personal, financial information, and more at risk of theft, which includes the possibility of identity theft, which was harmed millions of peoples throughout the world.
4) No Inventories Opportunities.
- When you are running an e-business you can use drop shippers to send out
your orders. Drop shippers are wholesalers that supply e-commerce web
sites different goods that they can re-sell. Once a customer places an
order with, you will send the order directly to the drop shipper,
eliminating the need for your own inventory.