Business on the Internet

What are E-Business and E-Commerce?

E-business is broader than e-commerce; including the transaction based e-commerce businesses and those who run traditionally but cater to online activities as well. An e-business can run any portion of its internal processes online, including inventory management, risk management, finance, human resources.

E-commerce is “any transaction completed over a computer-mediated network that involves the transfer of ownership or rights to use goods and services. E-commerce includes sales made on the Internet, Intranet, Extranet, World Wide Web, by email and even by fax.

Why should businesses go online? 

1. Expand market reach

With the Internet, the world is connected with each other. E-Commerce can expand their businesses even without opening a physical store in that country. And with mobile web usage growing, a customer can purchase our product anytime and anywhere. A company without a mobile friendly web may go down the drain if they don't catch up.

2. Visibility

Branding and relationships drive physical retail. In addition to these two drivers, online retail is also driven by traffic from search engines. Potential customers may be searching around in the search engine and might come across your website. There is a high chance for them to go to a website that they never heard of, thus increase your visibility, and more people will know about your company.

3. Enhance responsiveness

When you have a physical shop, you can get customer's feedback through survey or feedback card. However, they will have to wait for sometimes till their feedback is heard. When you use an online portal, you will get customer feedback real-time. Which means that you could respond to them ASAP. Thus enhance responsiveness and service to your customers.

4. Remain Open All the Time

Physical stores have a closing time; you cannot have it open for 24/7/365. It is impossible, how many people you will need to hire? How much you need to pay the overtime? But with an online store, it is possible! This will increase the company revenue as the customer knows that our store open all the time!

5. Cost Reduction

With a physical store, you will need to pay its rent, you will need to hire a few salesperson, you will need to advertise your shop. All this will cause your pocket to have a hole before you can earn a profit! On the other hand, Online Store reduce the cost! It does not need to pay rent and even if it does; you just need to pay for an IP address and a host. You do not need to advertise your store; you could use social media and the word of mouth!

Potential Concerns for E-Business and E-Commerce

1. Channel Conflict/ Competition

You might find one or even more online stores similar to what you have. This is because, most of us know how beneficial of having an online website can help to increase company revenue. You will have to fight with similar stores to earn the trust of your potential customers.

2. Customer loyalty

We know that there are tons of stores similar to yours. How can you get your customer to be loyal to you? Customers' mind changes frequently. Customer likes to try new stuff. Also, online store lack of shopping experiences. For example, a kid would want his/her parent to bring him/her to a toy shop and not just buying it online. They would not feel any joy as compared to going into a toy shop where there are lots of toys they could see and touch.

3. Security/Privacy

Having data of your company and your customers online is a danger. How could you keep all this data safe from potential hackers? Computers that communicate with other devices on the Internet have the potential to download malicious software like computer viruses, worms and other malware that can inhibit a machine's ability to function properly. Malware can potentially result in data loss or the need for maintenance, both of which can cost e-businesses time and money.