Table of Contents
- Benefits of E-Business to Businesses Today
- Cost-Effective Marketing
- Flexible Business Hours
- Price for an Essay
- Elimination of Geographical Boundaries
- Reduction of Transaction Cost
- Low Overhead Costs
- Customer Service
- Advantages of E-Commerce in Businesses Today
- Business to Consumer (B2C) Model
- Business to Business (B2B) Model
- Business to Business to Customers (B2B2C) Model
- Customer to Customer and Customer to Business to Customer (C2C and C2B2C) Model
- Risks to Businesses which Do not Use E-Technology
- Systems and Tools Companies Use to Access the E-Technology
- Related Free Business Essays
Benefits of E-Business to Businesses Today
The Internet has been a source of numerous business prospects recently. Business proprietors and their clients find rewards in Internet dealings as opposed to brick-and-mortar undertakings. Among the benefits of e-business are the following.
E-business guarantees that all the businesses labors end with one aim of driving targeted traffic to a company's website. With a secure site to send clients, the e-business website permits a proprietor to use numerous online selling strategies including email promotion, article selling, social media networking, and e-newsletters. Most of the named online marketing incentives are low cost or open facilitated high-quality marketing plans.
Flexible Business Hours
E-business servers reduce the time issues that site-based businesses stumble upon today, according to e-commerce learning. The e-business never collapses as the Internet is accessible all the time and always ensures a steady flow of business activities.
Elimination of Geographical Boundaries
With e-business, individuals can expand the scope of their influence. Moreover, online business can communicate with the clients globally. So long as the business has the Internet linkage, it is capable of reaching and selling its products to the website's guests.
Reduction of Transaction Cost
Companies operating an online business profit from reduced dealing expenses because it takes less manpower to accomplish an online deal. With a fully functional business website, the client’s placement of an online request thereby eliminates the necessity of a salesperson. Through the online payment dispensation system, the expenditures related with a store clerk are eradicated. Furthermore, an e-business transaction reduces the burden of cost on the business, making each dealing more profitable than mortar-and-bricks businesses.
Low Overhead Costs
Most of the expenses involved in operating a physical location are eliminated by managing the e-business. These businesses have a less fancy phone, rent, and service bills than trades that own physical structures. The e-business also lessens the cost of paying workers since no one is required to operate the website during production time (Lorette, 2016).
With e-business everyone is equal. When a business associates with its customers or vendors online, it becomes tricky to approximate the company’s size. With a proficiently developed and maintained website, any small business can look as influential on the Internet as the large enterprises do. It is a level performance field that helps to create prospects for small businesses.
E-Business helps to save cash on the business’ client service as well. By making the account data available for the customers on the Internet, they can check their accounts whenever they wish. Furthermore, by creating a customer service division on the business’ website that permits customers to demand product return authorizations, a company can boost its client service levels while lowering its expenditure of doing business, thereby bringing immense benefits to the industry.
In recent times, most products and services procured by the customers have been on the Internet. More consumers continue using the web to get their product facts, find vendors and purchase things. E-business benefits businesses by supporting and connecting them with the present rising retail division (Root III, 2016).
Advantages of E-Commerce in Businesses Today
Business to Consumer (B2C) Model
B2C applications are valuable for trade stores and corporations as the innovation permits them to boost their client base and, hence, the profits. E-commerce helps the companies to reach a large number of consumers that they might not be able to get to in a physical or bricks-and-mortar store. B2C is significantly useful for clients as it gives them an entrée to a world of stores instead of the supplies in their area. It brings a competitive tendency by giving customers the access to a broad range of preference and lower costs. Some B2C websites let clients name their individual prices for a diversity of goods and services. Thus, e-commerce brings forward valuable and client-based novelty. B2C lets businesses to expand their existing services to customers as well. Consumers can order an individual item to be delivered to a nearby store for pickup. The undertaking is a useful service that boosts consumer trustworthiness, and this is feasible only due to the introduction of B2C. Consequently, B2C applications open a kind of new planet for corporations that have not been well known to the external world before.
Business to Business (B2B) Model
B2B is crucially important to businesses because of its potential to lessen the expenditure significantly. By making communication easier and quicker, using new skills and standards, the list can move quicker and the procedure becomes more resourceful. Further on, B2B use helps to mechanize the communication between businesses. It also helps to decrease the prospective for mistakes, improves the process, and provides better goods and services.
Business to Business to Customers (B2B2C) Model
The applications help B2C industries to raise their profits. By leveraging the advantages of B2B to simplify and develop business, B2C corporations have the capacity to make more wealth by growing revenue and cutting needless expenses. Additionally, a business which is flourishing in one area of e-commerce can take advantage of this accomplishment and information gathered in other areas of their e-commerce plan.
Customer to Customer and Customer to Business to Customer (C2C and C2B2C) Model
The applications let clients to interact among themselves. This fact assist companies to have a quite natural income flow and customers have an access to a brand new way to buy and sell goods and services.
Risks to Businesses which Do not Use E-Technology
The higher initial expenditures are among the future risks to the businesses which do not use e-technology. The factor poses a risk as businesses without such technology require considerable start-up costs due to rent and workers who can result in the failure of the enterprise. Another risk involves long operating hours, thereby facilitating bad decisions that make companies collapse (Lang, 2016). Other risks associated with such activities include augmented expenses, decreased client base, and more costly marketing to a home market. In the case of disasters like earthquakes, the businesses suffer immense losses which can be minimized by e-technology (World Bank, 2013).
Systems and Tools Companies Use to Access the E-Technology
The e-commerce trade is comprised of a diversity of products and services including hardware components and a range of software products. The software expertises are being regularly upgraded to meet several fast-growing e-commerce challenges. As an e-commerce application is fundamentally a web-based three-tiered appliance where the first tier is user interface layer, the second-tier is compiled from web containers and scripting engine, and the third one includes information layer. Among the tools used by companies to access the technology there are such novel products like the application server, network essentials (wireless, wire, and satellite linkages, and web-oriented telephony), and other communication net services (the Internet and virtual private VANs apparatuses). The two primary tools being used today include the customer relationship management (CRM) systems and social marketing. The CRM systems use expertise to arrange, harmonize, and mechanize business performances. Social media marketing entails accessing the website traffic or attention through social media sites.
In conclusion, e-technology represents an emerging undertaking for many businesses today. Some of the benefits realized from the technology are cost effective marketing, flexible working hours, low overhead costs, and equality just to mention a few. Failure to use the e-technology results in various risks like increased costs, long working hours, ineffective decisions, and small customer base. The companies that access the technology use different tools and systems such as e-commerce applications, application servers, network elements, CRM systems, and social media marketing.