Business today has become an intricate entity and it is becoming increasingly difficult to survive in a fast paced environment. The market place today has several challenges that business need to face and one such challenge is business finance which poses as the biggest problem for businesses today. Hence, it becomes imperative for businesses to look for services from various companies and E-commerce to meet their business needs.
E-commerce has been around since long and it is becoming more popular in the present day market place. E-commerce simply refers to electronic commerce or the act of electronically purchasing or selling goods on the Internet or via other online services. The term ‘e-commerce’ is derived from the combination of two words such as ‘online shopping’ and ‘commerce’. Electronic commerce covers a wide range of activities related to marketing goods and services to the customers through various electronic means such as emails, internet phone conversations, faxes and websites.
This form of business transactions has become extremely popular due to several factors. E-commerce is usually considered to be safe and secure. E-commerce transaction have made business transactions easier to complete and faster thus; facilitating transactions and reducing time wastage.
E-commerce has revolutionized the way business is conducted and it is the fastest growing sector of the economy today. There are several reasons behind the increasing popularity of electronic commerce. One of the major reasons for the popularity of electronic commerce is that it helps the customer get access to the product and compare between several brands and makes a better and informed decision. E-commerce helps the consumer interacts with the product easily thus making them feel comfortable while making the purchase decision. Since there are various choices available in the market it saves a lot of time for the consumers as well.
In a traditional market where consumers can physically visit the stores they encounter many problems when it comes to buying. The factors are lack of time, familiarity with the products and the limited knowledge of the consumer. With the advent of online stores, the problems encountered in traditional markets have completely disappeared. The reason for the popularity of electronic commerce is that it makes it easier for the consumer to make purchases from the comfort of their home and without any hassles.
E-commerce helps the consumer make purchases by providing them a range of payment options like credit cards, debit cards, online banking and Pay Pal. Online shopping has made it possible for the consumer to shop for the things they need with just a click of a button. Online stores have reduced the hassles of physically visiting the market hence, it has eliminated the hassle of the customers. With electronic commerce, the product is available on the retailer’s website and the consumer can make purchases sitting at home. Online stores are known to have lower overheads than their brick-and-mortar counterparts hence making it more affordable for the retailer. The lower operating costs enables the retailer to offer additional discounts and offers, thereby increasing the margin.
While comparing business and e-business, it is important to understand the differences between e-commerce and e-business. E-commerce involves a variety of transactions including advertising, web site development, product marketing, and web hosting. Whereas e-commerce involves mainly direct interactions between business entities through online transaction processing.
The key differences between the two are that e-commerce e-business involves in a lot of electronic commerce activities whereas in business transactions, physical attendance is required. In addition to that, both also entail risk, although in different ways. E-commerce e-business may involve a greater reliance on computer security, whereas business transactions may be more susceptible to fraud. Both can have a positive or negative impact on the bottom line of the organization, however in business transactions the benefits of using electronic commerce outweigh the cost of using it.
