What Is E-Business and its Scope ?

E-Business


Meaning of E-Business:

Business is just like a broad-based term and industry and commerce are its constituents. Industry includes production and related activities. Commerce includes trade and its auxiliaries. Trade means buying and selling. In short, industry and commerce will combine to make business. In this context, e-business means conducting industrial and commercial activities through a computer network, i.e., internet, under proper guidance to prevent fraudulent activities.

Scope of e-Business

The scope of e-Business can be understood by the viewpoint of the parties involved and making electronic transactions. The following parties are included in the scope of e-business:

(1) B2B Commerce (Business-to-Business Commerce)

(2) B2C Commerce (Business-to-Customer Commerce)

(3) Intra -B Commerce (Within Business Commerce)

(4) C2C Commerce (Customer-to-Customer Commerce)


(1) B2B Commerce: B2B Commerce is that business activity in which two firms or two business units make electronic transactions. For example, one can be a producer firm of cloth and the other a raw material supplier firm of cotton. Activities like enquiry about goods, placing an order and making payment are undertaken on the Internet.




(2) B2C Commerce: As is obvious from its name, in B2C Commerce one party is a firm and the other party is a customer. On the one hand, a customer can seek information through the Internet about his favourite products, place orders, get some items on the Internet and also make payments. He can avail of such facilities round the clock. On the other hand, the firm with the help of the Internet can make a survey any time to know who is buying what and can also know the satisfaction level of the customers. In modern times, call centres provide a sea of the latest information about firms.




(3) Intra-B commerce: Uner it, the parties involved in the electronic transactions are the two persons or two departments of the same business unit. For example, with the help of internet, it is possible for the marketing department to interact constantly with the production department and get the customised goods made as per the requirement of the individual customer. In a similar way, one can very quickly get the inventory information of various branches. The personnel department can very efficiently perform the job of recruitment, selection, training etc through the internet.

(4) C2C Commerce: Under it, both the parties involved in electronic transactions are the customers. As both the parties are customers, as it is known as customer-to-customer commerce. It is required for the buying and selling of those goods for which there are no established markets available. For example, selling old books and clothes either ion cash or barter basis. through the internet, the customers (sellers) have a worldwide reach. In this system, one can take help of PayPal for payment. Instead of purchasing goods directly from an unknown seller, the buyer can instead send the money to PayPal. PayPal informs the seller that they will hold the money for them until the goods have reached the buyer. In this way the risk of the buyer, that is, the possibility of not getting the goods is eliminated.   





  • E-commerce versus E-Business

Since commerce is a part of business, it can be safely stated that the scope of E-Business is wider than that of E-Commerce. Besides E-Commerce, E-Business includes industry to related activities such as production, inventory management, product development, accounting an finance and human resource management. Buying and selling through the internet is called E-Commerce.
      

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