Key Differences Between e-commerce and e-business

Key Differences Between e-commerce and e-business

The following are the major differences between e-commerce and e-business:

1. Buying and Selling of goods and services through the internet is known as e-commerce. Unlike e-business, which is an electronic presence of a business, by which all the business activities are conducted through the internet.
2. e-commerce is a major component of e-business.
3. e-commerce includes transactions which are related to money, but e-business, includes monetary as well as allied activities.
4. e-commerce has an extroverted approach that covers customers, suppliers, distributors, etc. On the other hand, e-business has an ambiverted approach that covers internal as well as external processes.
5. e-commerce requires a website that can represent the business. Conversely, e-business requires a website, Customer Relationship Management and Enterprise Resource Planning for running business over the internet.
6. e-commerce uses the internet to connect with the rest of the world. In contrast to e-business, internet, intranet and extranet are used for connecting with the parties .

CONCLUSION OF E-COMMERCE

In general, today’s businesses must always strive to create the next best thing that consumers will want because consumers continue to desire their products, services etc. to continuously be better, faster, and cheaper.  In this world of new technology, businesses need to accommodate to the new types of consumer needs and trends because it will prove to be vital to their business’ success and survival.  E-commerce is continuously progressing and is becoming more and more important to businesses as technology continues to advance and is something that should be taken advantage of and implemented.

From the inception of the Internet and e-commerce, the possibilities have become endless for both businesses and consumers.  Creating more opportunities for profit and advancements for businesses, while creating more options for consumers.  However, just like anything else, e-commerce has its disadvantages including consumer uncertainties, but nothing that can not be resolved or avoided by good decision-making and business practices.

There are several factors and variables that need to be considered and decided upon when starting an e-commerce business.  

Some of these include: types of e-commerce, marketing strategies, and countless more.  If the correct methods and practices are followed, a business will prosper in an e-commerce setting with much success and profitability.

Negative Effects of E-Commerce

Negative Effects of E-Commerce

E-commerce can be a great way for a small businesses to increase their sales and widen their reach. It's also convenient for consumers, who can buy at their convenience, without having to leave their homes or spend the day fighting queues at the shopping mall to pick up the best deals. However, e-commerce also has negative effects on both consumers and retailers that must be kept in mind before launching an online shop.

Privacy 
It is easy to collect a lot of personal information from a consumer using an e-commerce website, sometimes too easy. Since all online transactions are recorded, it's relatively easy to create an online profile of the buyer, and use that to send targeted advertisements. However, many will agree that this is an intrusion on a consumer's right to privacy, and it's something that is heavily regulated on many countries. This means small businesses aiming to establish an online presence using e-commerce need to be aware of the legislation that applies, as mistakes can be costly both in terms of fines and customer trust.

Security 
Another negative effect of e-commerce is its effect on consumers' security. Online transactions are inherently more insecure than those conducted in person because there's no way to guarantee that the person making the payment is the actual owner of the credit card used. At the same time, when the customer inputs the payment information they risk a third party intercepting it if the website doesn't comply with the adequate security measures, giving rise to credit card fraud and identity theft. Merchants need to be aware of the risks electronic transactions carry, and work towards securing the systems to the highest standards.

Price Wars 
Merchants used to selling at their shop may often find selling online an extremely competitive marketplace. Their products are displayed alongside competitive offers, often from different countries or bigger retailers with access to better wholesale prices. This can affect the retailer negatively, as they cannot sell as much as they expected to actually make a profit, or the consumer's when online stores cut corners in order to become more competitive or products are purchased from illegitimate retailers because they had the best price.

Returns And Complaints 
Selling online means usually a higher return rate on products than when the purchase was conducted in person. This is due partly to the fact that customers haven't seen the goods in person prior to purchase, but also to the fact that many online shoppers buy things on impulse, and by the time they receive them at their home they have changed their mind and make use of favourable return policies. While a big retailer would have no problem accommodating this, it can be highly disruptive for a small business with limited stock management.

Selling online means learning new ways of dealing with customers, marketing your products and fulfilling your orders, but the benefits are great. You can keep your costs lower, reach a wider audience and do business 24/7, having time to focus on improving your products and services and your customer experience instead of being on the store floor waiting for clients. Some products sell better online than others: selling jewelry for cash online is much easier than trying to sell houses or cars. However, having an online store can increase the customers on your traditional commerce as well, as people are now able to find you online and see what products you are offering.

ADVANTAGES AND DISADVANTAGE OF E-COMMERCE

ADVANTAGES AND DISADVANTAGES OF E-COMMERCE

The invention of faster internet connectivity and powerful online tools has resulted in a new commerce arena – E commerce. E commerce offered many advantages to companies and customers but it also caused many problems.

ADVANTAGES OF E-COMMERCE

DISADVANTAGES OF E-COMMERCE

·         Faster buying/selling procedure, as well as easy to find products. ·         Buying/selling 24/7. ·         More reach to customers, there is no theoretical geographic limitations. ·         Low operational costs and better quality of services. ·         No need of physical company set-ups. ·         Easy to start and manage a business. ·         Customers can easily select products from different providers without moving around physically.

·         Any one, good or bad, can easily start a business. And there are many bad sites which eat up customers’ money. ·         There is no guarantee of product quality. ·         Mechanical failures can cause unpredictable effects on the total processes. ·         As there is minimum chance of direct customer to company interactions, customer loyalty is always on a check. ·         There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways, all are always prone to attack.

DEFINITION OF E-COMMERCE

                                   

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E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet. These business transactions occur either business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business. The terms e-commerce and e-business are often used interchangeably. The term e-tail is also sometimes used in reference to transactional processes around online retail.

E-commerce is conducted using a variety of applications, such as email, fax, online catalogs and shopping carts, Electronic Data Interchange (EDI), File Transfer Protocol, and Web services. Most of this is business-to-business, with some companies attempting to use email and fax for unsolicited ads (usually viewed as spam) to consumers and other business prospects, as well as to send out e-newsletters to subscribers.

The benefits of e-commerce include its around-the-clock availability, the speed of access, a wider selection of goods and services, accessibility, and international reach. Its perceived downsides include sometimes-limited customer service, not being able to see or touch a product prior to purchase, and the necessitated wait time for product shipping.