Why is e-business important for your business?

The need for online adaptation has come as the competitive environment and customer demands have changed. The internet has created a more level playing field, where competition has increased and has given consumers more bargaining power than ever. They can now comparison shop with just a click and this takes advantage of an open marketplace where substitute products are readily available.

By re-thinking your business to take advantage of new technologies and communication channels, you are able to look at improving the effectiveness of your marketing, building brand awareness, creating competitive advantage, enhancing customer service and tapping into a much bigger prospect base.

e-business is a critical concept for today’s small business as it can:

Expand your customer base by providing your current customers with another purchase channel, and opening up opportunities for your business to attract new customers.

Increase your visibility and strengthen your brand, especially as consumers are increasingly researching products and services on the Internet prior to purchase. Your website can be a wonderful tool for both local and global markets.

Remove the barriers of time and distance, allowing potential buyers to visit your website at any time of day and night to. Unlike your ‘real’ office or warehouse, your online store is open for business 24/7, allowing your customers the freedom to shop at a time that suits them, wherever they are located.

Provide customers with valuable information about your businessby showcasing your products and services and allowing them to purchase goods, ask questions and receive further information quickly and easily. And it can generate qualified leads for your business too.

Reduce the costs for the customer because the direct cost-of-sale for an order taken through a website is lower than traditional means.

Enable more buying opportunities for niche products.  Niche products often appeal to a much smaller market but the Internet opens up the marketplace to a global audience.

Enhance customer service by providing more efficient and timely advice, fulfilment of orders and problem resolution.

Reduce marketing and advertising costs because Internet marketing can be highly targeted to your specific customer base. This can provide a higher return on investment than traditional media advertising and the results can be more easily measured.

Keep an eye on your marketplace. Small business owners can quickly gather intelligence on their competitors’ promotional activities and discover what the market is saying about them.

Engage & build communities which increase customer loyalty, help you learn more about your customers and provide a valuable source of qualified leads.

Provide overall operational benefits by streamlining processes, improving delivery times, reducing errors, decreasing inventory and generally reducing both the time and personnel required to complete normal business activities.

In effect, e-business can help reduce costs and free up cash flow.