Importance and Complexities of Online Business Environment

E-BUSINESS AND E-
COMMERCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1 Critical awareness of the importance and complexities of online business environment3
LO2 Develop sufficient understanding of how the internet technology, Electronic Data
Interchange (EDI) and Networks work for supply chain activities, transferee of funds and
payment systems and business management..........................................................................5
LO3 Different e-business models that can be used to generate revenue for a business.........6
LO4 Understanding and application of effective web design structure for e-business and e-
commerce...............................................................................................................................9
LO5 Impact of a well-designed website to an e-business....................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
This report revolves around importance of technologies in business operations and how
technologies are contributing in E-business operations. Current market scenario help in
understanding that technologies used by organisation for procurement of products and services,
supplies and transport, handling of goods and functioning of organisation. These days e-
commerce is one of the effective mode of business and various organisation are selling their
products to consumers by the help of internet. E-commerce is considered as effective mode of
buying and selling of products for consumer. This report help in understanding about importance
of online business environment and complexities involved in this type of business environment.
This report gives information about e-commerce and help in making understanding about e-
business (Hu and Haddud, 2020).
MAIN BODY
LO1 Critical awareness of the importance and complexities of online business environment
Current market trends shows that e-commerce is one of the effective mode of business for
organisation and it is considered as one of the efficienct mode for organisation in reaching out to
their consumers. E-commerce help consumer in analysing products and choosing best product
according to their need and preference. E-commerce also help organisation in selling their
products and generating high revenues for organisation which make positive impact on
productivity and profitability of organisation. Electronic commerce have made impact on social
and economic environment which made impact on business of organisation and also made
impact on business environment for organisation. Electronic commerce have changed
marketplace for business and it also made change in the ways business is conducted in market.
Electronic commerce contributed in introducing new products into market and also contributed
in development of new market and products. Electronic commerce helped in making effective
relationship among consumers and organisation which played vital role in organisation
productivity and profitability (KORČEK and et. al., 2018). Effective relationship with consumers
have helped organisation in increasing their market share and also assisted in growth and
development of organisation. There might be some changes needed in electronic commerce to
make it more effective as introduction of new channels and increase in interaction among
consumers and organisation have to make electronic commerce more flexible and adaptable.

Electronic commerce have contributed in development of local vendors and retailers which are
focusing on expanding their business and electronic commerce have provided them the platform
to reaching out to more consumer by providing them products according to their need and
preference.
Electronic commerce also affected economy of different nations as it boosted the changes
which are under progress in economy such as reform of regulations, establishment of links
between different businesses, globalisation of economic activity and demand of workers which
are highly skilled. Electronic commerce have made an effective impact in different sectors such
as electronic banking, booking for travelling etc. Electronic commerce have influenced online
transaction and different applications are used by consumers to complete their transaction with
help of internet (Kwilinski and et. al., 2019).
Electronic commerce have given advantage to small businesses as their products can be
reached to consumers without spending large amount on marketing and electronic commerce
provided advantage to small businesses by reaching out to large number of consumers. People
are also influenced by the effectiveness of electronic commerce as people can do their business
online and make any kind of transaction related to business and transactions can be made from
anywhere and at anytime.
Electronic commerce have also contributed in reducing time for organisation to reach out
to consumers by marketing or advertising as electronic commerce have made transactions fast
and made process effective and efficient. Electronic commerce have reduced time by speeding
up cycles of production and help organisation to prepare product according to consumer needs
and operates in close coordination with consumer which also help consumer in making
transactions around the clock. Change in time is affecting structure of business and social
activities which are making major impact on organisation and their business.
Electronic commerce may have made its impact on business positively but still there are
some issues which needs to be resolved during conducting a business as electronic commerce
have issues related with security of personal information and security of transaction. Government
policies have questioned efficiency of electronic commerce and electronic commerce have
important implications for consumer protection, tax collection and policies related with trade
(Lin and et. al., 2020).