E-Commerce Challenges and Risks
E-Business Benefits
Benefits of E-Business Value what is actually offered by e-business. According to Charles R. Rieger and Marry P. Donato there are at least 5 advantages offered by e-business namely: Efficiency, Effectiveness, Reach, Structure, and Opportunity.
Efficiency
A research shows that approximately 40% of the company's total operational costs are allocated for information dissemination activities to the relevant divisions. With the use of information technology, it can be seen how companies can finance the total operational costs. An example is how e-mail facilities can reduce the cost of communication in sending documents.
Effectiveness
With the use of information technology, customers can get in touch with the company at any time, 7 days a week and 24 hours non-stop.
Reach
The company is able to expand the range and space of the company to expand easily (penetrating the limits of space and time) and without requiring relatively expensive costs.
Structure
The concept of brick-and-morter transformed into click-and-morter has changed the behavior of companies in a business approach.
Opportunity
Opened wide opportunities for business people to innovate to create new products or services due to the discovery of new technology from the future.
Also Read Articles That May Be Associated: Differences in E-Business and E-Commerce
E-Commerce Challenges and Risks
E-Commerce Challenge
The number of Internet users is not in line with the level of e-commerce sales
At present, Indonesia is the fourth most populous country in the world that has quite a large number of internet users. However, this did not seem to have a good effect on the level of e-commerce sales in Indonesia. Because, based on research results, Indonesia is ranked last of the five countries in Asia in e-commerce sales.
Online shoppers in Indonesia are still dominated by professionals
Half of all Internet users in Indonesia on average spend three or more hours online each day and around office hours, online shopping traffic will increase again in the afternoon after office hours or during lunch breaks. This is because buyers prefer to access the internet at work rather than at home, because of the slow internet connection at home.
Consumers in Indonesia prefer shopping on Social Media
and BBM Netizens in Indonesia tend to choose online purchases through BBM broadcasts, forums and social media platforms such as Facebook, where they can interact with sellers. And only 20% of Indonesian netizens say they prefer shopping on online shopping sites. This means that e-commerce such as eBay, Rakuten and Sukamart, must adjust their different strategies in Indonesia
Payment services are still limited
In the midst of poor transportation infrastructure in Indonesia, congestion and poor means of mass transportation to shopping centers make consumers have to make more efforts to be able to shop, for that problem, actually e-commerce can be the best solution for consumers in Indonesia. However, many e-commerce requires buyers to ATM to transfer a certain amount of money to the seller before the goods can be sent. It also needs to be considered by e-commerce actors to adjust the way of payment to the situation in Indonesia.