E-business is taking on today’s stage, especially in the digital era. But, what exactly is e-business? Does it even matter?
Let’s find out in this article.
What is E-Business?
E-business is the use of electronic media for conducting business, managing transactions, and trading goods or services. E-business can be divided into three categories: e-commerce, e-business applications, and e-business strategies.
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E-commerce
E-commerce is online shopping where consumers can purchase products from websites using payment methods such as credit cards, debit cards, or PayPal. Moreover, e-commerce uses the Internet to conduct business across countries.
Also, e-commerce allows a company to expand its market to more than one country and even the whole world. As online shopping gained popularity in the past decade, more industries are embracing e-commerce such as hotels, car rentals, and airline companies. As a result, e-commerce has become a great way to reduce costs and improve efficiency.
E-business Applications
E-business applications are applications that are used for running a business. Examples of typical applications include the following:
- Customer Relationship Management (CRM)
- Enterprise resource planning (ERP)
- Supply chain management (SCM)
- Enterprise application integration (EAI)
These types of applications have helped businesses become more efficient by improving productivity and reducing communication costs.
E-Business Strategies
E-business strategies refer to business strategies that are used in dealing with it. These strategies include customer relationship management (CRM), business process outsourcing (BPO), and supply chain optimization (SCO).
Moreover, these strategies require a lot of effort in order to establish effective systems. More so, for communicating with customers, suppliers, and partners in order to effectively run a business with limited resources.
Why E-Business Matters Today
E-business matters today because it is a tool for businesses to expand and gain more profit. Moreover, it allows businesses to communicate efficiently with partners, suppliers, and customers.
Moreover, e-business allows businesses to reduce costs of doing business by having an online platform for sales and purchases. Also, it helps to improve the company’s image by providing information about the company through social media.
E-business also provides a competitive advantage over other businesses because it makes it easier for customers to purchase products through an online shopping platform.
More so, it allows businesses to expand their market globally without needing to create a physical store in each country. Moreover, e-commerce has become a popular way of shopping because it is convenient, fast, and efficient.
Lastly, e-commerce has provided an opportunity for companies to reach new markets that they might not have reached if they only relied on physical stores alone.
Quick Tips for Starting
Before starting an e-business, it is important to be aware of the various risks associated with it. Some of these risks include theft of information, system and security risk, cyber-attacks, and legal issues.
Applying in Small Businesses
The Internet is a great tool for small businesses. More so, with the help of technology and online resources, small businesses can reach more customers further away from their physical location.
Online resources for small businesses include the following:
- Social media websites such as Facebook and LinkedIn
- Blogs to help build trust between customers and business owners.
- Ecommerce platforms such as Shopify or Weebly create an online store where customers can purchase products or services from the business’ website.
- Ecommerce solutions providers such as eBay or Shopify allow businesses to sell products online with little effort on their part.
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