Table of Contents
What is E-Business?
E-business refers to any business operation that is enabled by computer technology, or the internet. Practically every single business function can be digitised today.
Here are some examples of core and non-core functions that businesses of today have digitised or automated.
- Customer Relationship Management [CRM]
- Supply chain management
- Human Resource Management (HRM)
- Repetitive tasks like data entry
One of the most important business functions that benefited from digitisation is finance. The importance of financial management to businesses cannot be overstated.
For instance, with RazorpayX Payroll, you can conduct otherwise time-consuming employee services like salary disbursal in a few clicks. Furthermore, this platform also allows your business to meet necessary compliances such as Provident Fund deductions and TDS without any need for human intervention.
Components of E-Business
Some crucial components of e-business have been described below:
- Online Stores
For an electronic business, these function as a virtual counterpart of a traditional company’s shop. Therefore, clients of this enterprise can visit such an online store – usually a website or a computer/mobile-friendly app – to pick out the products or services they need.
Payments for these goods or services are made by both online and offline methods. However, businesses that are accepting online payments have to host their online store’s website as per the payment card industry’s security standards.
- Online Marketplaces
An online marketplace is an e-Commerce facility where products or services from third-party companies are listed for a potential buyer’s interest. In other words, such a marketplace functions as an intermediary between a manufacturer and a consumer by offering them a transaction facility.
- Web Communities
Online communities are virtual groups of individuals who have a shared interest in certain subject matters and use a centralised platform to communicate with each other about the same.
In the context of e-business, such communities can operate as a professional network built by this business itself. This way, all the members of an organisation – from its higher-up executives to entry-level employers – and their clients will have a common forum where the exchange of information can take place. This way, an enterprise can establish brand value and improve customer loyalty from this shared experience.
How Is a Product Order Placement Fulfilled by an E-Business?
The steps in which an order is placed and this request is fulfilled by an e-business are discussed below.
STEP 1: In a business-to-business transactional model, the client organisation can browse the seller company’s website to decide on the required products.
STEP 2: Subsequently, the client had to undergo order configuration and confirmation to finalise the amount of product it is purchasing at a set price.
STEP 3: This website will redirect the client to a payment gateway, where it can select a method of monetary transfer.
STEP 4: Next, the client must select its ideal delivery alternative.
STEP 5: As the order has been placed adequately, it remains the responsibility of the seller organisation to ensure according products are assorted within a stipulated time frame.
STEP 6: Based on the demands of the client, these products will be shipped to it accordingly to be delivered at a selected address within a given date
STEP 7: The seller and purchaser must settle the accounts if there are any outstanding costs such as delivery charges.
Notably, if the client receives a damaged product, all leading e-business companies have a comprehensive return protocol in place to ensure a stress-free solution. However, a customer must meet specific terms and conditions set forth by the sellers in order to be eligible for a replacement or refund.
The business model of one company varies significantly from another. However, keeping recent trends in the market in mind, some common aspects of a successful e-business model can be formed. These include:
Concept of the Business
A thorough outline of the mission and vision of this e-business should be available to every member of the organisation. These details must include the purpose of the company, its goals, and how it plans to achieve them.
An e-business must successfully present to its potential clientele, reasons why it can be their best choice over the competitors. So, it has to provide certain unique selling points to appear as a more lucrative alternative. These might include discounts, advanced customer service, and higher quality of goods or services.
Diverse Sources of Revenue Generation
Due to its virtual shop and extended online presence, an e-business has multiple sources of revenue than the profit generated from direct sales. These include:
- Subscription fees
- Running advertisements
The singular commercial purpose of a business remains generating profit. That is why any company must indulge itself in a certain set of activities with profit-making endeavours as an end goal. These activities may include but are not limited to-
- New property purchase
- Foreign market entry
- Accessing credit from traditional financial institutions or NBFCs
- Investment and expansion plans
- Budget preparation for a specific financial year
An e-business needs certain resources to leave a prominent mark in the competitive free market field. Some of these include:
- Capital or assets
- Technical support
- Client database maintenance
- Storage facility
Due to the information-intensive nature of the modern business market, an e-business will need highly capable employees to ensure optimal output capacity. That is why a business may use technologies like artificial intelligence or machine learning to properly train its workforce.
Critical Factors of E-Business Development
In order to succeed as an adequately functioning e-business, an enterprise must keep certain crucial factors in consideration. These include:
- The core business strategy must always be consumer-centric
- Outsourcing can be beneficial for a business in the long run
- Adequate information management via a well-maintained database and well-trained IT staff
- Quality control protocols for the products or services offered must be in place
What Are the Differences Between E-Business and E-Commerce
The difference between e-business and e-commerce had been discussed below:
|E-business is an umbrella term, considering all aspects of business processes conducted online||E-commerce is a specific and significant part of e-business, dealing with online transactions|
|E-business is not just concerned with the buying or selling of goods and services||Purchase and retail are the only areas of e-commerce’s purview|
|This utilises the internet, intranet, and extranet as a method of connection between different entities||E-commerce facilities can be enjoyed by the global customer base of a company via the internet|
|In order to maintain streamlined process management, an e-business will have multiple websites||An e-commerce site is a singular entity, that online customers visit to avail of their required product|
|This is more relevant for a business-to-business [B2B] module||This is more relevant for a business-to-customer [B2C] module, like Amazon or Flipkart|
How Can RazorpayX Help E-Business Companies?
RazorpayX emerged as the frontrunner as a crucial tool for e-business companies. Through its numerous facilities aiming towards business process automation, this platform has made it exponentially easier for enterprises to conduct business activities with ease.
For instance, with RazorpayX-powered current accounts, your company can now completely automatise vendor and tax payments. Moreover, small businesses can also rest assured about accessing formal credit. With this facility, it is possible for you to receive a corporate card with your account without any necessity of collateral.
Additionally, as an e-business owner, you do not have to worry about making time in your busy schedule for complicated paperwork, as you can get all the necessary work done while you are on the move.
What are the different types of e-commerce?
Different kinds of e-commerce services include:
What are some of the crucial influences leading to the boom of the e-business sector?
Several factors have paved the way e-business sector gaining momentum in recent times. These include:
The popularity of social media
Push towards a cashless economy
Big data generation and analysis