Answer: Advantages and Disadvantages of e-Business.
Meaning – e‐business means using the internet to connect people and processes for doing business. It also includes providing service to customers and collaborating with business partners across the globe. The internet and the emergence of e‐business has provided entrepreneurs with many new advantages. However, it has few limitations too.
Advantages of e‐Business:
The advantages of e‐business are as follows:
i. Flexible Business Hours:
The internet is accessible 24 x 7. This means that buyers and sellers can conduct transactions at any time as opposed to the regular trading hours of traditional business models.
ii. Availability of Wide Range of Products:
Consumers have access to a broader range of products and services from which they can select the products as per their choice.
For e.g.: flipkart, amazon etc. offer a wide range of services and products to select from.
iii. Very Low Start Up Cost:
The initial investment for starting an e‐business is generally lower than the cost associated with starting the same business using a traditional model.
iv. Quick and Easy Communication:
Through e‐business, it is easier and faster for the business organizations to communicate with their suppliers and their customers as there is no face‐to‐face interaction.
v. No Physical Space:
e‐business does not require physical space for operation. It requires highly qualified technical professionals.
vi. Government Support:
e‐business gets a lot of support from the government.
vii. Establishes Strong Relationship:
e‐business enables strong relationship building between suppliers and consumers as there is direct contact between both the parties.
viii. Renders a Global Platform:
e‐business provides the business organizations with the opportunity to transact with buyers across the globe. It connects the consumers and the business organizations anywhere from the world through internet.
ix. Easy Set Up:
It is very easy to set up e‐business as compared to traditional business.
x. Sound Communication:
e‐business provides a platform for sound and direct communication between suppliers and consumers.
Disadvantages of e‐business:
The disadvantages of e‐business are as follows:
i. High Transaction Risk:
There are many internet frauds that are committed through hacking etc. There is a possibility of misuse of the buyer’s bank details and this makes buyers insecure to perform online transactions and payments.
ii. No Face‐to‐Face Interaction:
The absence of face‐to‐face interaction with the sellers makes the buyers insecure at times.
iii. Personal Touch of Seller:
Since the transaction is online, the personal touch of the seller is missing and this may make the buyer insecure.
iv. Government Interference:
Sometimes government monitoring can lead to interference in the business.
v. Ineffective Return Policies:
Usually, all the online shopping sites come with a money back/product return policy.
However, they do not work as effectively and spontaneously, in case of dissatisfaction of the customer.
vi. Issues in Delivery:
Sometimes it becomes difficult for suppliers to deliver goods on time due to the lack of sound transport system in many parts of our country.
vii. Lack of Personal Inspection:
Since the buyer cannot touch and feel the product before purchasing, many consumers avoid online transactions.
Explain in brief the steps involved in Online Transactions.
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