The term 'on-line' is used to refer to an activity that is carried out electronically or on the Internet. In this context, we commonly encounter a number of terms such as online gaming, online search, online conference, online test and Internet business. An Internet business can be defined as a business where the main activities are carried out, including advertising, buying and selling products and services electronically or over the Internet. Many businesses have grown extremely profitable through online sales. Common examples of successful businesses include companies such as eBay and Amazon. The first is an online retail store, while the latter is an online bookstore. Both companies operate in a global marketplace on a 24x7x365 basis and have become household names around the world. Dell Computer is an important Another example of conducting successful business in an online environment.
While comparing and contrasting the online and offline business environment, we have to consider the experiences of both parties involved in commercial transactions: the buyer and the seller. There are particular advantages and disadvantages for both the buyer and the seller in an Internet business environment:
During
Advantages for the buyer in an Internet business environment include:
a buyer can easily find the rarest of products from the comfort of your own home, without the need to go to a market.
The costs associated with going to the market and the search for the desired product as time and money in transportation are reduced and even eliminated.
online firms offer innovative features to the online buyer such as automated cost-comparison that is not possible in the world of online business.
disadvantages to the buyer in an Internet business environment include:
The shipping process is expensive and also requires time in an on-line business environment.
The products on offer in a website can not be felt or touched by a customer. The online means only provides picture, sounds and textual features of products and services to buyers.
The process of returning an online purchased item is long and cumbersome. The customer support is often missing.
Seller
Advantages for the seller in an Internet business environment include:
Online business environment provides a global access to world markets.
The sales costs involved in an Internet business model are negligible compared to a business model online.
The online medium brings the smaller companies at par with the bigger companies. Even smaller companies can provide better services at competitive prices.
A seller can easily track consumer purchases and use that data to recommend other items to the customer. This is not possible in a business environment offline.
Disadvantages to the seller in an Internet business environment include:
Unlike the offline environment, the online environment does not allow any personal contact with buyers.
Internet businesses have to bear the cost of setting up websites, customer databases and online-servers.
Driven by the popularity of the customer's website, which is solely for the client interface.
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