E-BUSINESS - WHAT IS IT AND HOW TO CREATE IT?
Current as of: 1.06.2022
Digital services and e-commerce have been an integral part of the global economy for more than two decades. Nowadays, starting an online business is not only as easy as ever, but also offers more and more opportunities. No wonder, then, that a lot of entrepreneurs are taking this step. What should you know about e-business?
How does e-business work?
The spread of Internet access has started a wave of transferring more elements of many people's daily activities to digital reality. Nowadays, we can already speak of the emergence of electronic government, electronic commerce and even electronic society, among other things. The general issues of these concepts are often associated with the concept of e-business. In the broadest sense, it includes those entities in which transactions are made through the network. What can electronic businesses do? The profiles of their activities include, for example, taking care of the efficient exchange of information, conducting teleconferences, concluding contracts over the Internet or the smooth transmission of documents.
The electronic economy, like its traditional counterpart, is an extremely complex structure. Companies using the Internet as a service delivery channel already operate within almost every industry. They can be divided according to various characteristics and differences in terms of business model. Digital companies can work with many parties, regardless of their formal status. Thus, one encounters relationships business to business (B2B), business to consumer (B2C, also known as business to client) or business to administration (B2A). A model that is very popular among Internet users, on the other hand, is consumer is consumer (C2C) - this includes various types of auction portals, forums and stock exchange sites, among others. Slightly less common, but no less important for the market: business to employee (B2E). They usually act in the interests of companies with advanced business models, providing solutions to support the structure of the companies themselves.
Own electronic business - where to start?
When planning to establish an online business, one cannot be indifferent to the needs of the market. So budding entrepreneurs often wonder: what skills does the electronic society and the e-business operating within it value? It's hard to say, because in today's Internet everyone can find a niche that suits them. In each field, however, efficient information retrieval or knowledge of more than one foreign language, among other things, will come in handy.
One of the first steps a person considering entering the world of electronic business should take is to determine as precisely as possible the type of business he or she wants to conduct. This will help develop the basics of the business model and estimate investment costs. So if an entrepreneur is considering selling goods to consumers, he should familiarize himself with dedicated e-commerce solutions and the realities of the market in which he wishes to operate. Consider, for example, the demand for particular products in the range, the activities and offerings of competitors, or available technologies.
The rules that prevail in e-economy (digital economy) largely overlap with those of how companies operate in the traditional economy. As in any enterprise, it is important to take care of a trouble-free, stable and convenient infrastructure for electronic entities as well. In this case, however, it takes a fully digital form, so the issues of information transfer, accessibility and ensuring the security of each party to the transaction become very important. E-businesses are proficient in using information technology and are able to use it to achieve their goals - so before entering the market, you need to make sure you have the knowledge and resources to operate in a digital environment.
Take advantage of dedicated services designed for business:
The first steps of an electronic enterprise - what to pay attention to?
An entrepreneur determined to open an e-business will have to draw up a business plan, develop a budget and prepare the necessary infrastructure (for example, his own online store with the appropriate plug-ins). It is also worth taking care to attract new contacts and establish relationships with entities with which cooperation can be mutually beneficial. These may include, for example, providers of certain digital payment methods or a reputable courier company that will efficiently deliver orders to customers.
The issue of communication with product buyers is also extremely important. For example, if you run your online store and want to spare your customers the doubt and encourage them to buy goods, take care of the proper presentation of your product range on the site. Make sure that the photos posted online of the goods offered are of high quality and reflect their actual condition. Don't forget to include important details in product information - well-described items mean fewer returns and greater customer satisfaction with their purchases.
Properly structured marketing strategies help businesses gain customers, so it's worth taking care to implement them. They should be tailored to the realities of the digital marketplace, so include, for example, activities such as online advertising campaigns, search engine positioning and social media promotions. Building bonds between businesses and customers, on the other hand, is often facilitated by the introduction of loyalty programs.
Want to learn more about e-business? Check out the materials prepared by our experts: How to start selling on the Internet?