E-business or Online business means business transactions that take place online with the help of the internet. The term e-business came into existence in the year 1996. E-business is an abbreviation for electronic business. Therefore, the buyer and the seller do not meet personally.

E-business refers to all online business transactions including selling directly to consumers, dealing with manufactures and suppliers, and conducting interactions with partners. 

  • E-business includes e-commerce but also covers internal processes such as production, inventory management, product development, risk management, finance, knowledge management and human resources. 
  • E-business strategy is more complex, more focused on internal processes, and aimed at cost savings and improvements in efficiency, productivity and cost savings.
  • E-Commerce has a narrower definition and only involves buying and selling goods and services over the Internet. 

Nature of e-business:


In e-business again on the subject of trust, Daughtrey (2001) refers to the conditions of consumers expect purchasing from the Internet or when conducting business with:

  • Generalized perception of supplier or reputation.
  • Confidentiality and privacy, security for Customer expectations.
  • Supplier provided by Assurances for example guarantees.
  • Other customer’s reports. For example a history of prior transactions If the customer has, additional factors may be:
  • Order fulfilment accuracy.
  • Order fulfilment Timeliness.
  • With customer relations Nature of any interactions.
  • Any disputes Resolution.
  • From the supplier Subsequent communications.
  • With whom customer information was shared any communications from other suppliers.

Some of the features of Online Business are as follows:


  • It is easy to set up
  • There are no geographical boundaries
  • Much cheaper than traditional business
  • There are flexible business hours
  • Marketing strategies cost less
  • Online business receive subsidies from the government
  • There are a few security and integrity issues
  • There is no personal touch
  • Buyer and seller don’t meet
  • Delivery of products takes time
  • There is a transaction risk
  • Anyone can buy anything from anywhere at anytime
  • The transaction risk is higher than traditional business. 

Scope of E-Business


  • E-business in boarder in scope
  • As information sharing is the major part of the corporate industries, networking has given boost to E-Business. This change in viewpoint has opened door for new opportunities.
  • Selling can be focused to the global customer 
  • Pre-sales, subcontracts, supply 
  • Financing and insurance 
  • Commercial transactions: ordering, delivery, payment 
  • Product service and maintenance 
  • Co-operative product development 
  • Distributed co-operative working 
  • Use of public and private services 
  • Business-to-administrations (e.g. customs, etc) 
  • Transport and logistics 
  •  Public procurement 
  • Automatic trading of digital goods 
  • Accounting 
  • Dispute resolution

Impact of E-business on business


  1. Direct sales to customers. 
  2. Anytime access from anywhere.
  3. Customization of products. 
  4. Quicker time to market. 
  5. Flexible pricing, product portfolio and promotions. 
  6. Price discrimination. 
  7. Transfer of fund with efficiency. 
  8. Lower stock outs. 
  9. Automated and convenient process.