Online Business also known as e-business is a kind of business, where the commercial transaction includes sharing information across the internet.
E-business or the electronic business is the conduct of business processes over the internet. E-business includes the buying and selling of goods and services, also serving the customers, processing business payments, managing production control, collaborating with the worthy business partners, sharing information via the internet, running automated employee services, recruiting, and more all over the internet.
E-business consists of a range of functions and services which range from including the intranets and extranets by providing the e-services over the internet by the application of service providers.
In today’s generation, with the effect of modernization and to make their business effective to function it is utmost for every corporation to conduct their business over the internet. Corporations continuously reshape their businesses in terms of the internet, availability of the internet, reach and ever-changing capabilities over the net. They conduct e-business to buy raw materials from other companies, the companies collaborate on sales promotions and also in joint research.
The growth of this e-business in recent decades has given rise to new business requirements encompassing the scope of recruitment of able employees. In companies, customer front, consumers expect the organizations to offer self-service options for conducting their personalised transactions for personalized experiences, they want speedy and secure interactions both in course of purchasing the products also while paying for the same. In the regulatory section, implementation of new laws and best precaution for keeping the electronic data secure have been installed. As e-commerce has accelerated, companies adopted stringent security services which include encryption and digital certificates, to protect against the hackers, fraud and theft.
Advantages of E-Business
The advantages of E-business are as follows –
1. Removes Location and Availability Restrictions
The internet reaches wide across the world and spans in all time zones. This means that when businesses take off their business online, they have similar capabilities to conduct the business. While conducting business over offline, customers are limited by visiting the store which may be situated close or far from their location. Also, they are limited by the store’s operation time. In the opposite case, when the e-businesses are conducted over the internet connectivity, it makes the customers access the store from any area with internet access which is open 24 hours a day.
2. Reduces Time and Money Spent
Expenses rise up a good deal like the rent, electricity, phones, and general office upkeep, expenses for conducting the business physically, from physical locations can be cost-ineffective. By taking the business online, the expenses can be reduced or at least a lot of overhead costs can be eliminated. In addition to this, the logistics sector also gets a lot easier. Mass communicating with the customers can be done and this would save the cost.
3. Expedites Customer Service
With the queries of the customers, they want a fast solution to their answer, in this regard email and live chat are available which can solve the problem. The flexible forms of customer service also extend with the use of online in the business platform.
Limitations of E-Commerce
There are also drawbacks in conducting business online. The limitations are as follows
The biggest drawback of e-commerce is the security of business information. It is a general fear among the clients/customers to provide personal and financial information, even though several improvements and steps are taken up for its security. There are websites which do not have the capabilities to conduct authentic transactions.
2. Lack of Privacy
Even now many websites do not have high encryption to secure the online transaction or to protect the online identity. Some websites illegally collect the statistics of the consumers even without their permission.
3. Tax Issue
Sales tax is an issue when the buyer and seller are actually situated in different locations and then they need to compute sales tax which poses problems as the buyer and seller are in different states.