Question

“E-business is expanding rapidly.” In the light of this statement, describe the importance of e-business.

State any four points highlighting the importance of e-business to the buyers.

Aamir runs a grocery shop started by his grandfather. As online business is becoming popular, Aamir’s son Imran wants to stop physical sale of groceries and go for online sale.

State any four benefits to the business if Imran stops physical sale and starts online sale of groceries.

Answer 1

E-business provides several benefits to both buyers and sellers. These are as follows:

1. Global Market: E-commerce allows businesses to reach customers globally via the internet. The global market opens numerous opportunities for businesses.
2. Round the-Clock Working: A website is available 24/7, allowing businesses to process orders, track deliveries, and accept payments at any time. It enables businesses to provide customers with detailed information about their products and services, including three-dimensional images of them online.
3. Customised Products and Services: The Internet enables fast communication with global reach. Businesses can tailor their products to meet the preferences of individuals across different countries. In India, silk saree makers can create clothes for Chinese and Japanese markets. Businesses can build client loyalty by allowing them to design their preferred products and services.
4. Reduced Costs: E-commerce allows businesses to significantly lower transaction expenses. E-commerce can assist in eliminating advertising. Expenses include information exchange, transportation, and display expenditures. Providing information on the website can help lessen the need for customer care people.
5. Wide Choice: For customers, the entire universe is a shop. They can compare and assess the same goods across multiple websites to make the best decision. There are no constraints on inventory or space.
6. Customer Convenience: Customers can shop while sitting at home or in the office. Customers don’t need to wait in line to speak with salespeople or browse catalogues and price lists. Customers can shop online whenever it is convenient for them. Payments can be done online.
7. Direct Contacts: Eliminating middlemen allows businesses to have direct contact with customers. They can target specific customer groups.
8. Sales Promotion: You can use e-commerce for sales promotion by sharing catalogues and new product launches with customers online. The digital exchange of information reduces the need for paper, saving both time and money.
9. Customer Satisfaction: E-commerce allows quick response and redressal to customer complaints. This helps increase customer satisfaction.
10. Less Investment: Business firms can get quick supplies from the vendors. They need not maintain giant inventories; therefore, less capital is blocked in inventory.
11. Security: There are in-built security measures in e-commerce. Devices to prevent unauthorised use of data and information, passwords, encoding encryptography, cyphers, etc. are some of these measures.