Ecommerce

E-commerce is yet another avenue that individuals can utilize to start a journey into entrepreneurship. Before we delve into the matter at heart, we will distinguish between two terms used interchangeably, e-business and e-commerce. E-business includes running a website that informs the prospective clients about the available products in detail, so that they can be converted into customers. Whereas e-commerce is a subset of e-business and it essentially refers to activities involving monetary transactions. E-commerce (electronic commerce or EC) refers to the buying and selling of goods and services over the Internet. E-business is a broader term and it aims to educate the potential customers about a given product, as well as the manufacturer.

As we discuss e-commerce, we will give consideration to tangible products. Aspects of e-commerce include:

• E-tailing or The Virtual Storefront and the Virtual Mall This provides a place for direct retail shopping, with 24-hour availability, a global reach, the ability to interact and provide custom information and ordering.
• Email, social networking, and instant messaging E-commerce is also conducted through email, instant messaging and social networking sites such as www.Facebook.com.
• Business-to-Business Buying and Selling Thousands of companies that sell products to other companies have discovered that the Web provides a 24-hour-a-day showcase for their products but a quick way to reach the right people in a company for more information.

In order to set up your e-commerce business as with any business, one must plan, setup, market, and continually maintain the e-Commerce site and business. As you begin you must keep in mind that this is business ownership and in businesses there are risks. The key to remember is that your business should be fueled on passion and once that passion is gone, it is a lot more difficult to grow or succeed.

Pros of E-commerce
One of the major advantages of conducting business online is that the company and its products have a worldwide presence. As a result of, both the consumer and business owner enjoys savings. Reducing gas consumption and employee time are cost-saving benefits to parties involved. E-commerce is available 24 hours a day and customers around the world can traffic to the site.

E-commerce is popular and appealing to people in remote areas who can now visit their favorite stores online. Additionally, shopping online is fast, convenient and buyers can shop in the comfort of their own home. Convenience is one of the reasons both buyers and sellers are eager to get into ecommerce. When businesses engage in transactions with vendors, information exchange and business dealings can take place without location barriers.

Software development and upgrade continues to provide businesses online tools to perform many tasks online. Business owners and managers can access time-keeping reports, inventory, customer queries and project proposals at any time from any place with online programs.

Advertising costs can be greatly reduced by utilizing the Internet. Search engine allows customers to access a business’ products and services. Emails, newsletters, and social networks can also provide and bring new customers in without printed marketing materials making marketing and advertising extremely cost effective. Techniques like pay per click advertising and affiliate marketing can help businesses and affiliates to marketing their product or service reducing expenses.

E-commerce can greatly contribute to improvements in customer service. Online chatting can solve many customers’ complaints compared to lengthy, frustrating telephone calls with excessive holding and waiting times. Email and chat are faster options than letter or telephone calls. 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. Also, ppayments can be made online and the product is transported to the customer without causing him or her any inconvenience.

Rarely can a business especially a new one keep its doors open 24 hours a day, seven days a week. E-commerce provides business owners with no time restraints. Customers can reach the business anytime and from anywhere. Automatic reply programs can process orders and send emails to clients with confirmations of an order received. Small business owners, often overwhelmed by the time constraints they face during the day, can conduct business with vendors and clients after hours.

Cons of E-commerce
With the advantage, there are disadvantages as well. E-business has some very potent sectoral limitations. For example, the food sector has not been able engage in e-commerce for many practical reasons, including the selling of perishable items. Supermarkets and grocery stores are conveniently located to most consumers and people would rather walk or drive to the supermarket instead of ordering online and waiting for delivery. Similarly, some other industries do not seem to be benefiting from e-commerce.

E-commerce requires substantial resources at hand for online selling. Many resources need to be spent in order to establish an e-commerce. Factors like good and efficient computer systems, website updating, website maintenance, personnel training, and other planning needs to be considered before set up and they require human resource.

Visitors to your business site must also know how to find you. This can include complicated knowledge and expertise of search engine optimization. It is also more difficult to trust and build a relationship with a business that you cannot physically interact with. Many consumers are still more comfortable with traditional purchases compared to online purchases. Additionally, the disadvantages of having an internet business is if your business computers are not backed up and secure your system could be a victim of numerous attacks like viruses, Trojans, and worms. Additionally as with any business fraud can occur, therefore you must protect your customer’s privacy. Ecommerce is also competitive.

Point to Consider
E-Commerce Pros:

• Lower start-up costs compared to a storefront
• Ongoing web presence
• International customer access
• Business conducted 24/7
• Quick response to customers
• Lower overhead
• Lower product cost
• Work from home possibility

E-Commerce Cons:

• No physical interaction with customers
• Constant need to maintain sites
• Lack of customer trust
• Implementation of fraud prevention
• Sectorial disadvantage e.g. the food industry esp. perishable goods
• International customer access an awareness and means to accommodate all customers including national and international shipping requirements
  

With the emergence of advanced Internet tools, high-level security protocols and the ubiquitous use of computers by consumers and businesses, the advantages outweigh the disadvantages of doing business online.