Ease E-Business | Online Business Ideas For Beginners

Ease E-Business is a simple process of buying and selling of goods & services in exchange of money or goods equivalent to the product. The business process has been followed from centuries. The business concept has evolved from selling to modern Ease E-Business | Online Business Ideas For Beginnersmarketing. At present, the electronic business or e-business has gain popularity. The process followed in e-business is same as the traditional or original concept of business but it has a slight difference, which is, the whole process is completed on the web or electronically. It refers to the process of buying and selling the goods online through websites.

Internet or web services are being used by majority of people in the world. The importance of internet or e-business is felt by everyone due to which almost all the businesses has started incorporating electronic business method in their businesses.

BENEFITS AND THE BARRIERS TO AN ONLINE BUSINESS

E-business usually has more advantages then the limitations. Here the benefits and the barriers/limitation of online or e-business are mentioned.

Advantages of E-business

  1. E-business provides the wide range of choices in every product available.
  2. Through e–business, an individual can access any information or product available in any part of the world.
  3. The customers have a wide range of products to choose from and to fulfil his needs and demands.
  4. Virtual or electronic store are available on 24×7 bases. An individual can access these websites at any time of the day.
  5. E-business saves time and cost. The customer can compare and choose between the products.
  6. It has a convenience of home. People can access these websites and stores from their home. It reduces the transportation cost and physical efforts.
  7. Website is a very large medium of display different information or products and services to a large group of people at a single time. Thus it increases the productivity, success and growth rate for an organization.

Disadvantages of E-business

  1. The websites doesn’t provide the sense or feel of personal touch.
  2. It has been noticed that the customers do not get satisfaction from the products brought online as they couldn’t feel or sense the products. It mostly happens in the case of Clothing, footwear and personal care items.
  3. Online transaction can be sometimes tricky and problematic. Frauds have also happened online.
  4. Internet is now used by the majority of people but it is very expensive. Hence every individual cannot use it.
  5. Inferior quality or wrong products can also be delivered due to confusion or problem in the machine or network.

TYPES OF E-BUSINESS

  • B2B e-business: It refers to business-to-business transaction/process. It depicts the business transaction between two businesses. For example supplier and producer/manufacturer. The goods are transferred from the producer to seller or seller to retailer
  • C2C e-business: Is customer-to-customer. This type is used by two customers. For example Quikr and OLX are the two best examples of such businesses. In C2C, the customers can search another customer who is willing to sell or purchase the goods. The manufactures or retailer is not involved in this process.
  • B2C: Business-to-customer is the most common type of e-business. It includes the transaction between the manufacturer or the business and the customer. For example: Any website like Harrods.com, forever 21 etc.

Modes of communication in e-business and their application

New communication devices and methods are born and developed with the progress in the technology. For interpersonal, professional or marketing communication, new methods are available. Through these modes of communication, an individual can always be in touch with his friends, family, colleagues, bosses or any business associate. E-communication modes are also beneficial to the companies as it saves lots of money, time and physical movement of information.

Different modes of communication in e-business are as follows:

  1. Websites: It is the primary mode of getting the complete information about any business. The official websites of the companies provides every detail about its operations including employees, nature of goods, variety of products, structure, annual reports, location, service or store centres and so on. Websites are engaged in one way communication.
  2. E-mails: Are the messages send through electronic media. Any information can be send to any person in any part of the world in few seconds. Their use varies from person to person. The business can use emails to communicate with its employees, customers, suppliers, retailers or other business partners. E-mails are cost effective and save lots of time. Information through emails can be send to thousands of persons in few seconds.
  3. Social networking websites: As the name suggests, these websites are used for communication purposes with the existing and prospective customers. These websites have a larger audience or people in comparison to any other website or e-media. Businesses uses these websites to introduce, promote and communicate the information about the products and services offered by them. Example: Twitter, Instagram or Facebook etc.
  4. Mobiles: In present time, mobiles have become an integral part of our lives. It is used by almost every person in the world. Mobiles can be used to connect to different people at any time. Cellular devices are also used to store data, transfer information and send messages. Companies can also use cellular services to send promotional messages, offers, discounts etc. to the consumers.

SECURITY AND LEGISLATIVE ISSUES FACED BY ONLINE BUSINESS

The safety and security of the online transaction are of utmost importance. The customer pays online on the basis of trust on the company. Hence, it is the responsibility of the company to completely secure and protect he online transaction. The lack of security in online or electronic transactions has been an obstacle in the growth of e-business.

Security of goods and services

There are three major security issues related to online business:

  1. Identity Verification of the business partners like suppliers, customers, wholesalers etc.
  2. Send or receive unhampered information.
  3. Collecting the evidences regarding the time, date and place etc. when the contract was made.

These 3 issues are addressed by various methods/ means including:

Encryption: This process supports various information and security planning. Encryption is the process of encoding (converting) the message into different format or symbols which can be decoded or accessed only by the sender and the receiver/recipients.

Ease E-Business | Online Business Ideas For Beginners

Traditionally, a secret key or words were used to encode and decode the message, but the secret key cannot be protected in online transactions. Hence, in order to secure the online transaction, public key cryptography is now being used. The sender and the recipients are aware about how to encode and decode the message using the cryptography. It provides safety and integrity to the message.

Digital Signatures: Are also used to confirm the sender’s identity, consent and confirmation regarding the secrecy and confidentiality of the message. Digital signs are approved by the digital certification. It is a digital document signed by the certification authority defining the owner’s public key in digital format.

Certification authorities

Certification authorities (CAs) are independent third parties responsible for issuing the digital certifications to individuals. The certificates are issued after verifying that a public key belongs to an individual. The intensity of the verification process ensures the security of the online transactions.

Laws on electronic signatures

The UK government has passed various laws on e-signatures at the national and international level. According to one such law, the digital signatures have been replaced with electronic signature as according to the law, the digital signatures are a type a electronic signature.

UK Electronic Communications Act

The Act describes that the e-signature can be treated as an evidence or proof in case of any conflict or issues related to the originality or authenticity of the communication process. All the parties involved in e-business transactions must be aware about this fact.

EU Directive on a Community Framework for E-Signatures

EU Directive was adopted in 1999 by the European Commission to promote the harmony in the rules and regulations regarding the e-signatures between the members’s of EU.  It provides the rules and guidelines regarding the use, authenticity, legal requirements, etc. of e-signatures.

Electronic business has become a need for each and every business to compete in the intense competition. E-business has various advantages for the consumers, suppliers and the business. Every business is adopting the electronic platform to be at edge in the market. Various safety measures have been adopted and implemented in order to provide the safety and protection to the online or electronic business transactions and exchange processes.