E-Business - Advantages and Challenges of E-Business - Business Online

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Monday, December 30, 2019

E-Business - Advantages and Challenges of E-Business

E-Business - Advantages and Challenges of E-Business
E-Business - Advantages and Challenges of E-Business




E-Business - Advantages and Challenges of E-Business

E-Business has a various number of advantages compared to traditional business, but with advantages also come the challenges. Often when thinking of e-business people come up with thoughts of security, convenience, and low costs. For an online store, it is essential to go over these issues to minimize the risk and maximize the benefits of online shopping.

Advantages of E-Business

Global promotion: E-commerce offers you a chance to promote your products globally through the Internet. E-business has made it possible for companies to globalize their business much faster than before. The Internet provides a chance for users around the world to access your web site, even if your business operations are only local. The web page is visible online to anyone, anywhere, which provides your business the reach that wasn’t possible before.
In addition, it gives smaller businesses to compete with other companies on the same ground locally and internationally, which is a huge advantage, but also a threat.

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Low costs: The costs of running an e-business are relatively smaller than in running a regular business. First of all, the operating costs of e-business are low. An online business does not need large offices and warehouses and it is not tied to a certain location, thus reducing infrastructural costs. Also, the inventory costs and labor costs are minimal, because there is no need for a large staff. Not only does the e-business save money, but it also saves time. An online store is functioning on its’ own without you being behind the counter all the time. Also since all the action happens through the Internet, the transactions between the buyer and the seller happen faster. 
Marketing costs are also reduced in e-businesses. Direct marketing to the customer can be done via e-mail. Many online shops have a loyalty program, which encourages the customer to shop at the same place again by rewarding the customer with, for example, discount coupons/codes. This can be as well done via e-mail.

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Convenience: Convenience is a great advantage that comes with online shopping. For example, an online store is open 24/7 and is accessible from any location with an Internet connection. In other words, e-business removes the restrictions of availability and location. It also allows the customer to shop without leaving home which saves him the effort of dressing up and physically moving from a place to another just for the possibility to go shopping. E-business also provides the customer with the option to keep their product in the electronic shopping cart if they don’t feel like purchasing the product right away. The possibility of comparing similar products in different web stores is also a matter of convenience. There is no need to walk to the other store wince it is one click away. This is also a threat to online shops because it is extremely easy for the customer to buy the product from another store



Customer service: Customer service is one of the key elements and one of the best advantages that e-business can offer. The customer service is better and more personal when the customer can be in touch with the company through the Internet, without having to leave home. Also updating the web site with new information on products, prices, and availability is easy and fast. 

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Many web stores have a real-time online chat room where the customer can chat with a customer service person over the Internet. This kind of service provides true customer service and adds great value to the customer. 

In addition to this, online stores provide the possibility to contact the personnel via e-mail. Also, there is usually an FAQ (frequently asked questions) section on the online stores we site, where the customer can look up answers to the most common questions. 



Through an efficient DBMS (database management system), detailed information about customers’ shopping habits can be gathered and used for example in target marketing. A well-constructed database collects information on what type of products and how much money the customers spend when they purchase something. The information can then be used, by offering the customer special discounts or information on new products in a fast and cost-effective way that only e-business can provide. 

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E-business provides better customer service also in the form of delivery. Several e-businesses provide a delivery service, which brings the customers to order directly to their doorstep. This service is usually outsourced for logistics companies such as UPS or FedEx. Another option is to have the package sent to the nearest postal office. In this delivery option, the customer is notified when their package is ready for pick up at the postal office. 

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