What are the advantages and disadvantages of e-business?
Solution:
Advantages of e-commerce are as follows:
1) Ease of formation:
The formation of a traditional business is difficult, whereas to form e-business is relatively easy to start.
2) Lower Investment requirements:
The investment requirement is low as compared to traditional business as the store does not have physical existence and can be managed with less manpower so if the trade does not have much of the investment but have contact (network), he can do fabulous business.
3) Convenience:
The Internet offers the convenience of 24 X 7 X 365 days a year. Business is going on at any time and flexibility is available. Yes, e-business is truly a business that has been enabled and enhanced by electronics and offers the advantage of accessing anything, anywhere, any time.
4) Speed:
This benefit becomes all the more attractive when it comes to information. Much of the buying or selling involves the exchange of information that the internet allows at the click of a mouse.
5) Global access:
The Internet is true without boundaries. On one hand, it allows the seller access to the global market. On the other hand, it offers the freedom to the buyer to choose products from almost any part of the world. No need for face to face interaction between buyer and seller.
6) The movement towards a paperless society:
The use of the internet has considerably reduced the dependence on paperwork. Thus, recording and referencing of information has become easy.
7) Government support:
The government provides a favorable environment for setting up of e-business. This support ensures maximum transparency.
8) Easy payment:
The payment in e-business is done by credit card, fund transfer, etc. and it is available round the clock..
The Disadvantages of e-business are a follows:
(1) Lack of personal Touch:
E-business lacks a personal touch. One cannot touch or feel the products. So it is difficult for the consumers to check the quality of products.
(2) Delivery Time:
The delivery of the products takes time. In a traditional business, you get the product as soon as you buy it. But that doesn't happen in online business. This time lag often discourages customers e.g. Amazon now assures one-day delivery. This is an improvement but does not resolve the issue completely.
(3) Security issues:
There are a lot of people who scam through online business. Also, it is easier for hackers to get your financial details. It has a few security and integrity issues. This also causes disturbance among potential customers.
(4) Government interference:
Sometimes the Government monitoring can lead to interference in the business.
(5) High Risk:
High Risk is involved as there is no direct contact between the parties. In the case of fraud, it becomes difficult to take legal action.
