e-Business: Benefits and Limitations

The continued expansion of eCommerce could lead to downward pressure on inflation through increased competition, cost savings, and changes in sellers’ pricing behavior. In the emerging global economy, eCommerce has increasingly become a vital component of business strategy and a solid catalyst for economic development. ECommerce has a great history since it was invented back in May 1989, when SequoiaData Crop introduced Compumarket, the first internet-based system for eCommerce. All articles are written by volunteers and it may be beneficial to contact professionals to assist your understanding of the information and to guide your action. Pitch Labs bears no responsibility for the results of actions taken based off of article content or any other form of assistance given.

Management Notes

This information can be used to tailor services and offers to each individual customer. In 1994, IBM launched an advertising campaign to promote itself as a leader in Internet-based company through the phrase “e-business.” This new brand was planned to cost $1 billion to market. Louis V. Gerstner, Jr., CEO at the time, was willing to spend $1 billion on marketing this new brand. It is based on goals such as “Become a major bus seller or commercial enterprise” and objectives such as “have $80 million in revenues in five years”. Whether the company is prepared to achieve its goals and objectives addressed in the implementation plan for running a business and in the business plan process for startup companies.

Business model

1. The systematic use of technology to collect and utilize information laid the foundations of a so-called “information economy,” in which competitiveness is achieved through knowledge superiority.
2. By capitalizing on its diverse benefits, businesses can thrive in the digital age, meeting the evolving needs of customers and staying ahead of the competition.
3. In the digital age, establishing an e-commerce business has become an increasingly popular venture.
4. Print-on-demand products such as shirts are common in this e-commerce fulfillment model.

Reconnecting with the customer base is crucial for all small businesses right now, with the looming threat of the pandemic still ongoing. However, it is in looking further ahead that really shows the potential of e-commerce for small businesses. Stores need a direct line of communication with their audience — one that is not hampered by range or time constraints. And with small businesses moving toward e-commerce, there are signs of growing confidence among stores. A survey by SoctiaBank found that 7 in 10 small businesses are confident for the future, with 4 in 10 saying they are „very“ confident.

Online Companies

For example, with good SEO, your online store will appear in the top results of SERPs. Also, social media networks will provide you with a platform to engage and build trust with your customers through reviews and ratings, as well as keep them informed with regular posts about your products and offers. If you are running a physical store, it will be limited by the geographical area that importance of e business you can service, but owning an eCommerce website will give you the opportunity to increase your outreach.

Creativity and the willingness to experiment is what will really help small businesses and decide how they grow in the future. Stress and a sense of insecurity are caused amongst people because of the process of adjustment to new technologies and a new way of doing things. As a result, there is resistance amongst people to an organisation’s plans of entry into e-business. It becomes difficult to establish the identity of the parties, as internet transactions occur between cyber personalities. Moreover, it is very difficult to know the location from where the parties may be operating. There are also additional hazards of impersonation (someone else may transact in your name) and leakages of confidential information, such as misuse of OTP and credit card details.

i) Improved communication with customers and supplier

Most businesses eventually wind up with a combination of channels, although I always advise starting with only one or two channels and slowly adding more channels later due to inventory complexity. Business and digital authorities still frequently classify e-business as B2B, B2C, C2B and C2C. Some offer additional classes of e-business, such as business-to-government and business-to-employee. If possible, work with a professional web designer and developer to ensure your design is easy to navigate, SEO-friendly and compatible on all devices. Don’t forget extra features your customers may find useful, such as a shipping calculator, chatbot and appointment or meeting scheduler.

This would include buying and selling of goods or services using commercial transactions conducted electronically along with providing customer or technical support with the help of the internet. E-business is similar to E-commerce but it is more than just a simple act of buying and selling services or goods online. In fact, it is the method of utilizing digital information and advanced communication technologies to streamline different business processes – from the initial to the implementation phase. E-business includes a lot of business processes including online order processing, CRM (Customer Relationship Management), supply chain management, and many more. E-commerce is a part of e-business, so let me give you a comprehensive detail about what is e-business. B2C is the most common form of e-commerce business because it is the relationship between a seller and final customers.

It’s the ideal way to take your brand from a traditional brick & mortar store to an innovative, well-loved one. Starting an online store can mean significantly lower start-up costs compared to a brick-and-mortar retailer. The retailer or the online business owner doesn’t have to take into consideration the high expenses of shop rental, hiring a salesperson to woo the customer, utility bills, security measures, etc. Whereas the intangible resources include the customized software, customer data, intellectual property, and business processes that can be patented. Supporting resources include the IT and communication processes and organizational structure. In dropshipping, the seller never touches the product and holds no inventory.

Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about. CRM lets businesses to increase their efficiency by providing them with the ability to track and manage all their customer data in one place. E-business allows businesses to reach a wider audience more easily and at a lower cost than traditional marketing methods. Then the mid-nineties onwards period, significant advances took place in commercial Internet usage.

Companies use an ‘electronic eye’ to keep track of the computer files, e-mail accounts, etc., of employees. Dependence on paperwork and the attendant ‘red tape’ is considerably reduced due to the use of the Internet, as most of the work is done electronically through computers. Government departments and regulatory authorities are also now increasingly using computers to reduce the use of paper, whereby they allow electronic filing of returns and reports. This also leads to an increase in the speed of the process of granting permissions, approvals, licenses, etc.