Advantages and Disadvantages of E-Business

Advantages and Disadvantages of E-Business

What is E-Business?

  • The term ‘E-business’ i.e. electronic business is derived from the terms of e-mail and e-commerce.
  • E-business or electronic business is the administration of conducting business via the internet. This would include the buying and selling of goods or services, along with providing technical or customer support through the internet.
  • The concept of E-business emerged when IBM coined the term in the late ’90s. The purpose was to provide buyers a platform on the internet to buy and sell goods.
  • Some people use the term ‘e-business’ and ‘e-commerce’ interchangeably but they are not synonymous. E-commerce refers to buying and selling online, while e-business encompasses all business conducted online. E-commerce is a branch of e-business.


Advantages of E-Business:

  1. Easy formation: It is easy to set up an e-business as compared to traditional businesses.
  2. Global Platform: we can run a business at a global level due internet (World Wide Web).
  3. Ease to Access: It is very easy to shopping online from anywhere as per our time schedule and choices.
  4. Government support: Government Support: Government provides support to E-business by providing subsidies and concessions to promote digitalization.
  5. No Physical Space: E-business does not require Physical space you can run the business from home or anywhere.
  6. Easy Communication: There is a direct relationship between Suppliers and Consumers so strong relation is built-in E-business.Advantages and Disadvantages of E-Business

Disadvantages of E-Business:

  1. No Face to Face Interaction: In E-business, there is no face-to-face interaction between buyer and seller so buyers may not buy the product online.
  2. No Personal Touch: E-business has no personal touch and we cannot touch or feel the product as the human touch is missing (No salesperson). That makes the buyer insecure.
  3. No Touch and feel: In India, most of the buyers want to teach and feel the product before buying but in online business consumers unable to touch and feel.
  4. Government Interference: Sometimes government monitoring may lead to interference in e-business.
  5. Security Issues: In e-business, there is transnational risk involved because financial details can be used by a third party.

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4 comments on “Advantages and Disadvantages of E-Business

  1. You had explain the Advantages of E-Business
    But I have a dought, how to explain Business to Business of advantage and disadvantage ?
    Kindly reply on this mail

    1. Think you are running a business and what problems you faced will become disadvantages and what benefits you get will be advantages almost similar to ebusiness

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