Justify the following statement
1) It is easy to set up e-business as compared to traditional business.
(1) e-business is run, managed, and carried out with the help of information technology, i.e. web (internet). However, traditional business is run, managed, and carried out in accordance with specific old custom or trading practices of long-lasting.
(2) In traditional business large, physical space is needed, to arrange and display a variety of goods. It needs a large amount of capital to have the infrastructure, staff, and other required facilities. e-business can be started, managed, and operated with the help of the internet from any place or even from one’s own home. Naturally, it requires very little capital. It is also easy to set up.
(3) In traditional business, time is required to travel, to convince, to negotiate, and to interact with the customers. In such a process a lot of time, energy, and money are wasted. While in e-business required information is provided and accepted with terms and conditions more instantly.
(4) e-business is also free from most of the problems faced by traditional businesses. Thus, it is easy to set up an e-business.
2) E-business allows users to work across the globe in any field.
(1) e-business i.e. electronic business may be defined as the application of information and technologies to support all the activities of the business. It involves electronic buying and supply, chain management, process orders electronically, online payments via debit or credit cards, handling customer service, etc.
(2) In order to begin with e-business, a business owner must have an internet presence. He has to obtain an e-mail address for communicating the same to the customers and other business associates. This helps in speedy communication between business firms and customers.Communication is easy as there is no face to face interaction.
(3) Once the owner of e-business has acquired an electronic means of contact, he may sell goods to the customers residing in any part of the world. There is no need for any wholesalers, retailers, etc. This reduces costs and increases profit. In e-business, goods can be purchased on the internet from any place across the globe, payments can be made with the help of debt, credit card, internet banking, and the goods are physically delivered at the doorstep of the buyer.
(4) Similarly, he can do trading in any field. e-business uses the internet to connect people and processes. The World Wide Web (WWW) offers a lot of exposure to e-business on a global platform. The international relationship is very strong in e-business. The Government also offers a lot of support to e-business. Thus, it allows one to work across the globe in any field he likes.
3) Online transactions are done with the help of the internet.
(1) Online transactions take place when a process of buying and selling is completed through the internet. For online transactions, registration is required. The consumer needs to login to a particular website to buy a particular article or service. The customer’s email ID, name, address, and other details are saved and safe with the website for further contact.
(2) When a customer likes a product or service, he/she selects pickups and drops the items or things in the shopping cart. The shopping cart keeps a systematic and detailed record of what items have been picked up while browsing the online store.
(3) The buyer then proceeds to the payment option after selecting all the products. Payment can be made by accepting cash on delivery mode of payment, after receiving the physical delivery of goods. The customer may pay in cash or by debit or credit card. The buyer also sends a cheque to the seller and the seller sends the products after the realization of the cheque.
(4) If the payment is transferred by the buyer from his account to the seller’s account electronically, then after the payment is received by the seller, he sends the goods to the buyer. The credit card or debit card is also used by the cardholder for making payment of purchases. The amount gets immediately transferred to the vendor’s bank account. After the successful transfer of funds, goods are delivered by the vendor to the buyer. Thus, all aspects of online transactions are completed with the help of the internet.