Pros and Cons of an E-Business

28.03 2010

Pros and Cons of an E-Business

E-business stands for various business processes that intend to facilitate various business transactions over the Internet. The article discusses some of the advantages and disadvantages of an e-Business.

Pros of e-Business

The first and most important advantage of having an e-Business is the ubiquity, meaning It is possible to have the business everywhere. Having your business online ensures a worldwide presence and continuous integration between customers and business partners. For example, eBay works on the e-business principle. With its worldwide presence, it has customers in all parts of the world. A customer does not have to be in a particular location to carry out business with the company. In fact, they could do so sitting in any part of the world. Not only this, information exchange and business dealings can take place without location barriers.

Using the Internet to market products and services is very cost effective. Various techniques like pay per click advertising and affiliate marketing help businesses and affiliates to marketing their product or service. Additionally, many traditional business procedures and expenses are eliminated in the world of the e-Business.

E-Businesses result in better customer service. Online chatting can solve many problems that are faced by the customers, compared to lengthly telephone holding time waits. This results in flexibility and faster response rates. In most cases, email and chat are faster options as compared to post or telephone. Moreover, prospective customers who visit the website can be greeted by a pop-up asking them to enter the chat box for more personalized information. With online payment systems and e-commerce systems, e-Businesses have become even more efficient and convenient. The biggest benefit of e-Business is the speed and convenience in the days of the Internet shopper.

Cons of e-Business

Unfortunately, not all sectors have benefited from the adventure of an e-Business. For example, the food sector has not been able to do so for many practical reasons, including the selling of perishable items. In addition to this, supermarkets and grocery stores are conveniently located to most consumers. Thus, people would rather walk or drive to the supermarket instead of ordering online and waiting for delivery.

Many resources need to be spent in order to set up an e-Business. Factors like good and efficient computer systems, website updating, website maintenance, personnel training, and other planning needs to be considered before setting the e-Business system. Visitors to your e-business must also know how to find you. This can include complicated knowledge and expertise of SEO or search engine optimization.

Additionally, the disadvantages of using an unsecured Internet would be faced by an e-Business setup. If your business computers are not backed with efficient SSL certificates, secure servers, and anti-virus software, your system could be a victim of numerous attacks like viruses, Trojans, and worms. Additionally, e-Business systems need to be protected and insured as many online scams and frauds now take place in the online world making it even more important to protect your customer’s privacy.

Trust is an important factor that has been hindering the growth of e-Business to some extent. Most people are used to carrying out business the traditional way, that is, in person or face-to-face. It is difficult for them to trust online facilities and systems. Many consumers are still more comfortable with traditional purchases compared to online purchases.

Pros vs. Cons of an E-Business

Irrespective of the disadvantages of an e-business, the advantages clearly outweigh them. There is absolutely no doubt that e-businesses have changed the way business is carried out and its potential benefits to the business and the customer are vast.

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