(A) Advantages of e-business : The advantages of e-business are explained as follows: (1) Ease of formation : In comparison to the traditional method of business, e-business is very easy to set up. The advent of internet has afforded entrepreneurs the ability to open small businesses with a minimal overhead.
(2) Lower investment requirements : As compared to traditional business, the investment requirements of e-business are very low. This is because for conducting e-business, the entrepreneurs do not need a large store or professional space, e-business can be managed with minimum manpower. If entrepreneurs have good contact (network), they can do extremely good business with less investments.
(3) Convenience : In e-business, seller and buyer get advantages of internet platform. Internet offers the convenience of 24 × 7 × 365 days a year to both buyer and seller. Business can be done any time with great flexibility. Truly speaking, e-business has enabled and enhanced by electronics. It offers benefits of accessing anything, anytime and from anywhere.
(4) Speed : Web facilitates direct communication between the seller and buyer. It helps the customer to direct or point out his needs and expectation. Similarly, using website seller can show the available products, offer discount and do everything 1 possible to sell his products. Thus, much of buying or selling involves exchange of information through internet at the click of mouse.
(5) Global access : Truly speaking, internet is boundary less. Internet facilitates and allows the seller an access to the national as well as global market. Internet also offers freedom to buyer to select products from any part of world. There is no need of face to face interaction between buyer and seller. All the things are completed by using internet.
(6) Movement towards a paperless society : Use of internet has considerably reduced its dependence on the paperwork. Due to use of internet, recording and referencing of information are very easy and less time consuming.
(7) Government support : In e-business transactions, cost reduction and availability of products at relatively low prices are possible. This is beneficial to society at large. Hence, government always supports or favours e-business by providing favourable environment for establishing e-business. This support facilitates maximum transparency in the business.
(8) Easy payment : The payment in e-business can be done by credit card, debit card, fund transfer, etc. These facilities are available round the clock.
(B) Disadvantages of e-business :
The disadvantages of e-business are explained as follows:
(1) Lack of personal touch : Before buying the products most of the customers want to see, handle, touch, inspect or test the products which is not possible in e-business system. Because of this reasons, most of the customers do not look for online purchase of products on the internet.
(2) Delivery time : In e-business, the delivery of products takes considerable time. In traditional business, immediate delivery of products is given to buyer after he buys the products. The considerable time lag discourages the customer to buy products from e-business. Now a days most of the e-business assures one day delivery. This improvement does not solve the issue completely.
(3) Security issues : The scam through online business by many people cannot be denied. It is also easier for hackers to obtain one’s financial details which can be misused for their personal gain. Thus, online business has less security and integrity issues. Because of these reasons the potential buyers are also discouraged to buy anything from e-business.
(4) Government interference : Many a time, the government monitors, interferes and controls the e-business system. This may put a great hurdle on its growth and prosperity.
(5) High risk : In e-business system, transaction risks such as supply of inferior quality of goods, supplied products do not match with the sample shown, high prices, defects in products, cheating, etc. cannot be denied. In case of any fraud, it becomes very difficult to take legal action due to lack of direct contact between the parties.
