Advantages And Disadvantages Of E-Business

E-business involves using the internet to integrate the vendors or traders with the consumers and suppliers. The broad purview of e-business includes running a website that informs the prospective clients about the available products in detail, so that they could be converted into customers. The website also carries information regarding any discounts and vouchers offered by the trading organization. There are many people who confuse e-business with e-commerce and often use the terms interchangeably, though there is major difference between the two. E-commerce is merely a subset of e-business and it essentially refers to activities involving monetary transactions. E-business, on the other hand, is a broader term that involves more than just selling products to the customers. It aims to educate the potential customers about a given product, as well as the producer. However, as with all business concepts, e-business is not without its negative sides. Follow the article to know the advantages and disadvantages of the same.

Probably the biggest advantage of conducting business online is that the firm and its products have a worldwide presence. One of the first companies to use the term e-business was IBM, when it began to collaborate with business partners from all over the world. Amazon.com also helps customers to buy internationally, from third parties. In simpler words, e-business has shrank the world for business enterprises and made it easier for them to reach out to global customers.

Marketing products through the web has made advertising extremely cost effective. Pay per click advertising is an effective technique that ensures that the advertisers only pay for the advertisement that have been clicked upon and viewed. Affiliate marketing is also extensively being used for product promotion. The affiliate directs the potential customers to a business portal, and if a purchase is made, the firm gives a compensation to the affiliate.

 

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 to him/her.

 

E-business has some very potent sectoral limitations. For instance, the food sector has not really benefited due to e-business, in terms growth of sales and resultant revenue generation. Food products are perishable items and as such, customers, generally, do not look for them on the internet. They rather prefer to go to the super market or stores to buy the necessary food items. Similarly, some other industries do not seem to be benefiting from e-business.

E-business requires substantial resources at hand for redefining product lines for online selling.Upgrading computer systems, training personnel, and updating websites are an important aspect of e-business, which require human resource.Electronic Data Management (EDM) and Enterprise Resource Planning (ERP), necessary for ensuring optimal internal business processes, also require enough resources, which may be considered a disadvantage of e-business by many.