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E-businesses are the future for every entrepreneur/business as they make trade possible across boundaries. Most businesses built their online presence during the lockdown because of the Covid-19 virus. Since then, the importance of having a digital presence is one of the priority agendas for all businesses.
Importance of E-Businesses
E-Businesses have made it possible for businesses to expand their reach.
Following are the ways E-businesses are helping businesses make their business better.
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Safety - It offers safety as transactions are carried out online without any exchange of cash. Be careful of the payment gateways being used to avoid fraudulent transactions.
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Convenience - It offers the convenience of shopping from the comfort of your home. In our fast-paced lives, it is extremely convenient to not have to travel to shop. You can browse through various options and order what you like.
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24/7 shop – Customers have the luxury of shopping 24/7 through an online shop. If you have a busy lifestyle, you would prefer online shopping as it gives you the flexibility of shopping when you want, sitting at home.
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Breaking boundaries – The E-business model has made it possible for businesses to enter new territory. It is possible for someone in the US to shop from a local business in a remote part of India. With the convenience of shipping anywhere around the world, businesses have flourished by offering the option of shopping online.
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Aggregation of stores – In an online shop, businesses can offer products that are available across all their stores. While in a physical store, they can only offer what is available only at that particular store. Offering more choices to customers makes the brand popular and efficient.
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Option to return a product – From a customer’s point of view, since they aren’t touching and feeling the product, there is an option to return or exchange the product. While this might be a little stressful for the business, but it opens up many avenues to increase sales rapidly.
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Cost reduction for business – Many businesses are now only focussed on selling online. They keep a small office for regulatory purposes. It saves costs as they do not have to maintain a physical store and pay for electricity, maintenance, staff salaries, rent, repairs, store design, inventory, etc. Some sellers even take advance orders and deliver after confirmation. That way they do not have to maintain too much inventory.
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Low-cost advertising and marketing – With the help of social media, collaborations, influencer marketing, offering discounts/coupons, rewards, etc. there are many ways to advertise your product for free or at a minimal cost.
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Creative marketing – In an offline shop, you can create attractive creatives, infographics, videos, etc. to better showcase your product. All of these efforts, if done well, require very less investment to make them effective.
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Ability to compare product and price – There are many tools available that let both the seller and the customer compare product features, prices, and other aspects very easily. It helps customers make better choices. Sellers can improve their offerings based on the comparison.
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Ease of Payments – There are so many ways customers can pay for their purchases. They can choose to pay via net banking, UPI, Cash on Delivery, EMIs, buy now pay later facility, etc. makes it very easy for the customer to pay for their purchases. Now customers can make payments according to their preferred mode of payment.
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Easy Exports – E-businesses allows local businesses to reach global customers by creating their own websites. Global customers can pay using their debit/credit cards or use services like PayPal, TransferWise, etc. to pay using their bank accounts/credit or debit cards. Businesses can also list their products on international websites for which they have to pay a commission to the online marketplace. This enables a much wider reach through an already established platform.
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B2B business opportunities – E-businesses have made business to business trading also very convenient. Be it sourcing of raw materials, packaging materials, logistics, machinery, wholesale supplies, or any other business requirement, businesses have been connecting online to collaborate and work together.
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Targeted marketing – The use of online tools of marketing combined with artificial intelligence allows businesses to target their probable customer base. This is not possible in a physical store as people come as per their will. Based on past browsing history, buying habits, demographics, and other factors, artificial intelligence can help businesses target their future customers effectively.
Disadvantages of E-business
While the advantages are a lot, there are also a few disadvantages of an E-business.
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Fraudulent websites – Customers need to be careful about which business they are dealing with. Make sure it is a legitimate business and not someone who will disappear after taking money. Make sure you check all business details before completing the purchase.
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Sharing of important data – Some websites with not enough security features might share your credit card/debit card or net banking details. Those can be misused if they fall in the wrong hands.
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Misuse by customers – A very common issue faced by sellers is customers making false complaints or returning the product after using it for some time. Make sure your purchase/return/exchange policies are clearly stated on the website.
Conclusion
E-businesses have quickly become the new way of doing business. They offer a wide market reach, cost reduction, effective ways of targeting customers, low-cost advertising and marketing, aggregation of stores, and various other benefits to the business. From a customer point of view, e-businesses offer convenience, many payment options, a vast variety of choices, the option to return or exchange, the ability to compare products, etc. Overall E-business is a win-win for both the sellers and the customers and will only flourish in the coming future.
FAQ of Why E-Businesses Are The Future
1:What is the future of e-business?
E-business will continue to flourish in the coming years. With the benefits e-businesses offer both for the customers and businesses, it is becoming a preferred choice of purchase.
2:What are the five important factors of E-business?
The five important factors of e-business are systems integration, scalability, maintenance, customization, and customer experience.