Introduction to Online Business.
In this lesson we will learn about business, online business, why should businesses extend their businesses to online.
Introduction to Business.
“Any activity which is undertaken with the objective of earning profit is called a business”.
The activities rendered by a person/person under legal frame world to provide goods and services to all group of persons for the interest of enjoying some benefits is called “business”, such as hawkers, peddlers, Radio dealers, manufacturers, repairs centers, dry cleaners, banking, transporting companies, producer of different commodities etc.
What is Online Business?
Online Business is also known as e-business or electronic commerce or internet business. Which means the transaction of online business is conducted over the internet.
Which includes exchange of information of value in the form of products and services as well as payments, using web-based technologies.
Where transaction is done in mixed mode but orders and payments are completed online, while delivery is done offline.
Examples: Online shopping malls such as Amazon.com, computer stores such as Dell, Lenovo, HP and Acer, auction sites such as eBay, online bookstores such as Barnes and Noble and numerous B2B sites such as Alibaba.
It is no changed from regular business, excluding that it is smoothed by web-based technologies.
An online transaction can be done 100% online for electronic products such as music, video clips, e-books, air tickets, cinema tickets, hotel booking, share trading, banking service and more.
Why should businesses extend their businesses to online?
- The World Wide web has fashioned electronic or virtual bazaars where trading can be directed without any physical and time barriers.
- Electronic markets have the advantages of greater reach and richness than the traditional markets.
- Improved distribution of resources, relationships and efficiency of economies as well as increasing competitiveness and diminishing costs,
Example: Telecommunication costs has greatly reduced.