E-commerce: A Step for Management

By Anchit Jhamb and Swati Aggarwal

This book is a sincere effort to cover all those topics of e-commerce from different universities for the students of BBA, B.com and MBA for which they have to gather notes and books from different places.

• Language: English
• Publisher: Pencil
• Release date: Mar 12, 2021
• ISBN: 9789354384929

Book preview

E-business

UNIT-1 Introduction to E-Commerce and E-

Business

Introduction

In today’s world of digitalization and development many opportunities are there for the businesses and many businesses used these opportunities and made themselves available to their customers with the help internet. This design of e-business have helped the companies to increase their reach to the customers and made this whole world to look like a small global village. And this design of e-business helped many other associated businesses to grow themselves. The e-business has given many choices to the customers to select and order. And e-commerce is an important sub part of e-business.

E-Business

E-Business is the term which states that when all the business operations major one like pre and post sales activities are done with the help of internet. E-business is very broad term and E-commerce is one major part of it. E-business not only works on internet but also intranet is helpful. Many activities like customer survey, any feedback and any kind of interaction or communication with customers, suppliers or with any stakeholder has become very easy and social media is just an icing on the cake and then if any customers or any stakeholder have any complaint with the product one can visit the particular website and tell the company for the same and the customer will either get the refund or the product will be exchanged. Now the related businesses like money transferring apps have also increased their businesses by good margin.

Opportunities of E-business

1) Global Presence- Digitalization helps to make the presence globally and as a customer any person order anything which is available on the website of the companies from anywhere.

2) Cost reduction- There are many hurdles and problems in traditional business and the cost is also very high to manage a business but e-business has reduced the cost by maximizing the reach of the business and also helping the business to keep up with the trends

3) Easy to start- In comparison to traditional business the e-business is easy to start as it generally does not require much physical presence and also not much of manpower to control so managing a business becomes easy.

4) Non restricted business hours- As the internet is available all the time so for a business it becomes easy to work all round the corner and it helps in getting an edge over the traditional business.

Challenges of E-business

1) Security issues- There are many problems like phishing, scams, hacking which makes online business a tough thing and is a major concern for business men and also for the customers.

2) No personal involvement- The buyer and seller need not to be involved personally hence making it difficult for both the parties to have a discussion over the product and the trust issues in the mind of buyer is always there.

3) Delivery of the product- Generally in the traditional business the customer gets the product at the same time and the product is according to the customer’s choice and in the traditional business the exchange and change of goods is easy and all these things are not easy in online business for the customer.

Competing in the digital economy

On one side the usage of internet has allowed many businesses to give their global business but has also increased the competition. Internet has also abled the customers with ocean of choices and the customization has also been made easy. But there are many factors which has fuelled the competition in the digital economy.

1) Size of Business- In traditional business the size of business plays a major role but the internet has given scope to each and every business no matter of what size the business is hence it has increased the competition.

2) Location of business- This is again a major hurdle for a business which means if a business house is easily visible it will attract more and more customers but again internet has increased competition by overcoming this issue now a business needs to have an attractive website and problem is solved.

3) Easy communication- Now with the introduction of many languages. Those all customers who are using internet can use the website in their native language and buy their products.

4) Barriers to entry- There are many barriers to entry for a traditional business but if the internet is introduced it eliminates many