e-Business: Benefits and Limitations

The growth of e-business in recent decades has given rise to new business requirements. Consumers expect organizations to provide self-service options to conduct transactions, personalized experiences, and speedy, secure interactions. New regulatory laws and best practices for keeping electronic data secure have been established.

Order Fulfillment Process

E-businesses are also vulnerable to systemic risk that influences the entire online market segment. The dot-com crash of 2000 to 2001, for example, began after several e-business startups went public and were purchased by other e-businesses. Many of these e-businesses had little cash flow, valued growth more than financial stability and went out of business due an unsustainable economic bubble that eventually burst. Additionally, many companies struggle to integrate their siloed data and functions with e-business services to converge and work seamlessly together. Loyalty programs can allow you to retain customers and keep them coming back.

Chapter 7: Formation of a Company (Not in CBSE Curriculum for the Academic Year 2022-

“Government to” types are where the primary e-commerce seller is a local, state or federal government. While not a form your small business will take unless you’ve won the lottery and bought a sovereign island, this “government to” e-commerce is growing and it’s good to understand how it fits into the overall picture. While often facilitated by businesses, “consumer to” e-commerce categories are when an individual is the seller or otherwise providing something of value to another entity. E-commerce channels are the actual methods used to connect the buyer and seller. These channels are where customers view the products available for sale and place orders.

You are surfing the website of any well-reputed business brand manufacturing laptops, desktops, or monitors, and able to view their all products. Online communities (also known as web communities or internet communities) are groups of people having the same interests or purposes who use the internet to communicate with each other. It is used between individuals and organizations to prepare transaction decisions. Revenue is expected to grow at a rate of 11.51% per year for a projected market volume of $1,563 billion by 2027 5. It shows no signs of stopping as our culture and landscape of acquiring goods and services shifts.

Required Activities, Resources, and Capabilities

Depending on which type of value a company decides to pursue, they can choose one or more value activities – for example the collection, structuring, pre-selection, summary, or distribution of information. A so-called “digital information product” can also be created, offering added values which the customer is prepared to pay for. This information product may be a website, blog comparison portal, e-book, or a software application. The word e-business became popular following an IBM advertising campaign about computerized procedures to automate business processes. On October 7th, 1997, the IT and consulting firm published an eight-page essay in the Wall Street Journal and used the term to describe how corporate systems would fundamentally change in the digital era.

Further, overall connectivity empowers the organization to deliver an efficient service. Time is also saved in other transactions, information transfers, and ultimately helping in decision making. Integrity, loyalty, and sustainability are key factors in building corporate integrity, loyalty, and sustainability throughout the entire e-commerce distribution chain. Transparency in the product lifecycle allows companies to evaluate market forces and adapt their strategies accordingly, optimize pricing and fulfillment in real-time, and inspire consumer confidence.

That is, ordering three or more sizes with the intention of returning all but the one that fits the best. I find that since customers usually don’t have to interact with anyone when making e-commerce returns, they are less nervous about size bracketing instead of checking size charts before ordering. E-business transforms business relationships traditionally working in hierarchy and many indirect connections.The old indirect connectivity and hierarchy was responsible for the market inefficiencies and loss of information. E-business with end-to-end importance of e business relationship empowers efficient information flow.

1. Business concept and market research are important to understand the market, who comprises it, and what they want.
2. That’s why it’s important to tailor your strategy to meet your unique goals.
3. These are most popular for food, grocery and convenience items from drugstores.
4. For brick-and-mortar stores expanding into online selling, e-commerce platforms, such as Square, that offer physical point of sale (POS) and online selling in one package are generally optimal.
5. Despite being able to shop in real life now, online grocery shopping continues to rise 4.

In this way, retailers can increase their sales by boosting their number of orders. However, it is also helpful for customers as they can purchase products & services whenever they want no matter whether it is midnight or early morning. With eCommerce and mobile commerce as well, the entire world is your playground. Your products or services are within reach for a lot of customers who might be sitting in another corner of the world.