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Benefits of E Business – 10 Advantages of E business | E Business Solutions

Benefits of E Business

E-business is the conduct of business processes on the Internet. These electronic business processes include buying and selling products, supplies and services; servicing customers; processing payments; managing production control; collaborating with business partners; sharing information; running automated employee services; recruiting; and more.

Some of the advantages of e-business are as follows:

a) Provides Flexibility

E-business interacts with more customers, can entail more,and can offer an innovative experience through website. It offers a platform for organizations to interact with customers in a creative way and provides flexibility to realize creativity along with infrastructure that decides the scope.The restructuring of organizational processes and functions are much easier and they contribute to better utilization of resource and assets.

In this age of information explosion, e-business offers a platform for information utilization and allows building an edge through creative use of information.It comes in various forms such as outsourcing, off shoring,and integrating various business components. If we take a further look at the emerging service-oriented architectures components. If we will observe that they offer flexibility to every component in the business as a service.

b) No need for physical presence

Businesses are no longer dependent on physical reach because most of them have expanded through the Internet. This has increased the visibility of companies. Increased connectivity has enhanced responsiveness manifold. Introduction of new service have changed their management and treatment in the marketplace.

c) Cost reduction

E-business reduces the cost information collection, information storage and information analysis. Most importantly, it reduces the communication costs.

d) Transparency

In e-business, markets, prices, transaction, and costs become more and more transparent. This transparency leads to more efficient markets. Cost transparency refers to the ability of the customer to determine that actual cost.From the manufacturer to the distributor to the retailer to the consumer, the connections between each party are increasingly distant. The need to maintain control and visibility across the whole supply chain – also known as e-commerce transparency is more of a priority now than ever before, especially in a world where ingredients, manufacturers, and consumers live on different continents.

The market is increasingly pushing for greater transparency. Consumers are more likely to be drawn to businesses that are honest and open, while distributors and retailers prefer brands with good reputations, and manufacturers want to establish stable, ethical supply chains. Nevertheless, visibility in the B2B2C ecosystem is more than just market appeal. It is the ability to control the product’s lifecycle from manufacture to end consumer, and even every step in between.

Integrity, loyalty, and sustainability are key factors in building corporate integrity, loyalty, and sustainability throughout the entire e-commerce distribution chain. Transparency in the product lifecycle allows companies to evaluate market forces and adapt their strategies accordingly, optimize pricing and fulfillment in real-time, and inspire consumer confidence.

e) Personalization

Another important aspect of e-business is personalization. E-business allows one to have targeted marketing message and even customers can select their messages of interest.They can keep their transactions listed and merchants can give personalized service as e-business allows very easy information handling.

f) End-to-end information flow

E-business transforms business relationships traditionally working in hierarchy and many indirect connections.The old indirect connectivity and hierarchy was responsible for the market inefficiencies and loss of information. E-business with end-to-end relationship empowers efficient information flow. This allows customer demands at different levels being addressed more efficiently.

g) Integrated solution

E-business even helps in managing the chain of networks linking customers, workers, suppliers, distributors, and even competitors within an integrated or extended supply chain management solution. Supply chain management(SCM) is defined as the management of supply-related functions and activities, that is,materials,information, and finance as they move from source to destination, that is, form the supplier to manufacturer to wholesaler to retailer and, finally, to consumer. It involves the coordination and integration of parties involved in it and the flows both within and among companies.

h) Saves time

One of the major driving forces behind implementation of e-business is that is saves time. The saving in time takes place on different fronts.The customer saves time because he/she can perform different transactions at any time and at any place.Also,the turnaround time for transactions is reduced to a great extent. Further, overall connectivity empowers the organization to deliver an efficient service. Time is also saved in other transactions, information transfers, and ultimately helping in decision making.

i) Improved communication with customers and supplier

The communication and interaction of customers with suppliers has become easier.Financial transactions have become efficient and that allows both customers and suppliers to concentrate on other fronts. Electronic communication makes overall communication efficient.

j) Online publishing

Text, graphics, and multimedia files are used in web-based document for web publishing.The examples of web publishing include various e-magazines, web based newspapers, and e-books that are published on website. Other materials used for promotional purpose and published on websites also come under web publishing.Low-cost universal access, the independence of time and place, and ease of distribution are some of the advantages of online publishing.

There are management issues and public policy issues that need to be considered before online purchasing. The measurement and profitability related issues come under management issues, while copyright, censorship related issues, and legal aspects come under public policy related issues. Online publishing uses both business-to-business (B2B) and business-to-consumer (B2C) models.

k) Benefits for the retailer

E-business provides benefits to business houses, customers and even retailers.These benefits come from information efficiencies and penetration made available in the form of market exposure and cost reduction.Following are the benefits for a retailer:

  • Increase market exposure: It is possible for the retailers to sell the products not only to those who have easy access to them but also to customer accessing the website from far-off places. It improves market exposure and reaches of the retailer and makes a bigger market available for him/her to compete.
  • Increase sales: Further, increased market exposure and time saving enables organization to increase their sales.
  • Reduce costs: The reduction in delay and elimination of obstacles allows to get rid intermediate losses of communication and further overall pace of communication is increased. In traditional models, the customer has no choice but to go through intermediate dealers. The establishment of direct channels, however, allows customer flexibility and reduction of the cost, resulting in better experience. Information efficiency and reduction of delay and inaccuracies contribute to cost reduction.Orin another words, for the same cost many more things could be offered to users.


Andrew B. Whinston and Ravi Kalakota, “Frontiers of Electronic Commerce“, Pearson 1996, ISBN 81-7808-357-5
Chan, H, Lee, R. Dillon, T., and Chang, E. E-Commerce: Fundamentals and Applications,John Wiley & Sons, New Delhi.

Dave Chaffey. “E-business and E-commerce Management“, Fourth Edition or Higher, Prentice Hall,
Jonathan R. J. E-Business A management perspective, Oxford University Press, New Delhi.
Adhikary Shankar N. Introduction to Management Information System, Buddha Publication,Kathmandu.
Kenneth C. Laudon, Carol G. Traver, “E-Commerce Business,Technology, Society”, Pearson
Kulkarni,P., Jahirabadkar,S. and Chande, P. E-Business. Oxford University Press, New Delhi.


E Business FAQs

The payment mechanism typical to e businessThe payment mechanism typical to e business

(a) cash on delivery (CoD)
(b) cheques
(c) credit and debit cards
(d) e-cash

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The Correct Answer for the given question is option (d) e-cash


It is not an application of e businessIt is not an application of e business

a. Online bidding
b. Online procurement
c. Online trading
d. Contract R&D

[bg_collapse_level2 view=”button-orange” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]

The Correct Answer for the given question is option d. Contract R&D


The scope of e commerce is ................ than digital businessThe scope of e commerce is ……………. than digital business

A. Broader
B. Narrower
C. Wider
D. Hyper

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The Correct Answer for the given question is option B. Narrower



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