Importance of e-Commerce in e-Business

The relation between e-commerce and e-business

E-commerce is the heart and soul of an e-business. Although e-commerce and e-business are largely, related, there are differences between the two. E-business has a much wider scope when compared to e-commerce. While e-commerce deals with all the money related aspects of a business like purchase and sale of goods, preparing financial statements of the business and preparing future financial goals, e-business goes much beyond financial matters. For a business to develop and succeed, a lot of factors other than finance like marketing, publicity, business strategies and human resource management are required. E-commerce takes care of all the finances involved for the execution of strategies but is not involved in the actual strategy planning process.E-commerce helps in better organization of finances

E-commerce uses internet tools and software’s to calculate and compute financial matters of a business. Using the ICT, which stands for Information and Communication technology, e-commerce helps in better organization of finances of the companies including matters relating to trade of goods and services. Software’s help in accurate preparation of financial documents and also save a lot of time for the company. E-commerce simplifies the whole task of bookkeeping. All the executives have to do is feed accurate data into the e-commerce software and then analyze the obtained results. This way, the final reports are more organized and accurate.

Improves the efficiency of transactions

E-banking is a huge asset for e-commerce activities. The transfer of funds is easier using e-banking. Also, it becomes very easy for an e-businessman to make and receive payments instantly.

The long wait for cheques can be gotten rid of using e-commerce. E-commerce deals with contacting wholesalers and retailers to receive goods to be sold. The facility of online transactions simplifies this process since most of the wholesalers and retailers are listed in the online classified sites. Looking up in the online directory and contacting the seller online is a lot easier than searching for wholesalers physically. E-commerce also makes it easy for customers to purchase clothes from online stores.

Improves the efficiency of customer based trade transactions

E-commerce simplifies the task of dealing with finance transactions with the customers and thus, paves way for providing a better customer service. E-commerce computes customer bills and receipts electronically and sends it to the customers via an electronic medium. Receptions of customer orders are also more efficiently dealt using electronic communication and information services. Dispatch of international orders and bills is a lot more efficient when an e-business uses e-commerce.

Simplifies the functions of e-stores

Online stores are one kind of e-business that deals purely with trade of goods and services. For such sites, e-commerce is of great help. Considering the volume of selling and buying transactions that take place every day on an online store, it becomes imperative that an online business uses accurate and quicker means of preparing receipts and trade statements in order to avoid confusion and mix up between two transactions. Collecting orders from customers and supplying products gets simplified with the use of e-commerce.