School of Information Systems

Discussion of E-Business and E-Commerce

14 Aug 2023

Definitions of E-Business and E-Commerce

Several processes are described as e-business. To begin with, a company builds and sells an online system that tracks inventory and triggers alerts at specific levels in an e-business. Inventory management is a business process, and when facilitated electronically, it becomes part of e-business. In addition, online tools for human resources can be produced by an e-business. These tools include online job boards, application processes, and systems that collect and maintain data about employees.

Furthermore, a content management system that manages the workflow between a content developer, editor, manager, and publisher is another example of an e-business. Without an electronic workflow, the physical movement of paper files would conduct this process. By electronically enabling it, it becomes an e-business. In conclusion, servicing customers, collaborating with business partners and performing electronic transactions within an organization. In e-commerce, it involves placing orders and making payments online. E-commerce is the process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet (thebalancemoney.com).

Benefits and Limitations of E-Commerce and E-Business

  • Benefits of E-Commerce

Benefits to Organizations:

· Facilitate access to domestic and international markets;

· Reduce the cost of processing, distributing, and retrieving information.

 

Benefits to Customers:

· 24/7 access to a wide range of products and services.

 

Benefits to Society:

· The ability to provide information, services and products quickly and conveniently to people in cities, rural areas and developing countries.

 

  • Limitations of E-Commerce

Technological Limitations:

· Lack of generally accepted safety standards;

· Insufficient telecommunications bandwidth;

· Accessibility is expensive.

 

Non-technological Limitations:

· Realize that EC is not safe;

· Unresolved legal issues;

· Lack of a large number of sellers and buyers.

 

  • Benefits of E-Business

The benefits of e-commerce are numerous, but the most obvious is the ease of doing business. Some of the main advantages of e-commerce are:

    • Cheaper than Traditional Business: E-commerce is much cheaper than traditional commerce. The cost of starting an e-business is much higher than the cost of starting a traditional business. In addition, transaction costs are effectively lower.
    • No Geographical Boundaries: E-business has no geographical boundaries. Anyone can place an order anytime, anywhere. It is one of the benefits of e-business.
    • Flexible Business Hours: Because the Internet is always available, E-commerce removes the time barriers that location-based businesses face. If someone has an internet connection, they can sell their products or services to those visitors on their business website.

  • Limitations of E-Business

However, that is not all good news. E-commerce has some limitations compared to the traditional way of doing business. Some of the limitations of e-commerce are:

    • Lack of Personal Touch: E-business lacks a personal touch. Someone cannot touch or feel the product. Therefore, it is difficult for consumers to check the quality of the products. It also lacks humanity. For traditional models, we will contact the seller. It gives him an air of humanity and reliability. He is also able to build trusting relationships with his customers. Such attributes are always lacking in e-business models.
    • Delivery Time: Product delivery takes time. In traditional commerce, someone gets the product right after they buy it. However, that does not happen in online business. This delay often frustrates customers. However, e-commerce merchants try to solve these problems by promising limited delivery times. For example, Amazon currently offers same-day delivery. This improvement does not entirely solve the problem (toppr.com).

Ethical and Legal Issues in E-Business and E-Commerce

Legal Issues in E-Business

  • Privacy: E-commerce allows businesses and employers to track individual activities on the web using cookies or particular spyware. It allows private/personal information to be tracked, aggregated and stored as a personal record. This record may be used or sold to other companies for targeted marketing purposes or by employees to support personnel management decisions (e.g. promotion, raise, termination of contract).
  • Job Loss: Intermediaries provide information and value-added services such as advice. Due to the existence of e-commerce, intermediaries are kicked out or fired from companies using e-commerce.

Ethical Issues in E-Business

  • Intellectual Property Violations

The ethical implications of intellectual property violations often plague online businesses. These violations may result from ignorance or bad legal advice or may be intentional. Some of the most common violations are Unoriginal logos, image theft, content theft, selling counterfeit items, and unauthorized use of audio and video files.

  • Information Security

Businesses that sell products and services online typically collect sensitive information from their customers, such as credit card and bank account information, customer names, addresses, and phone numbers. Additionally, many e-commerce websites offer customers the option to set up an online account. It requires the customer to set a username and password (smallbusiness.chron.com).

Legal Issues in E-Commerce

  • Fraud on the Internet : stocks, investments, business opportunities and auctions.
  • Taxes and Other Fees: when and where (and possibly if) e-sellers should pay business taxes, franchise fees, gross revenue, and sales taxes.
  • Copyright : The company that creates the e-commerce platform must use licensed technology with extended validity or proprietary technology. A fundamental problem associated with this industry is copying an individual’s work by others, which is kept in an electronic format because the Internet is a free place; anyone can access it anywhere (prezzi.com).

Ethical Issues in E-Commerce

  • Spoofing

Identity theft criminals rely on trying to gain someone’s trust and convince them that the fake communication is legitimate. In many cases, simply using the name of a large, reputable company such as Amazon or PayPal is enough to persuade the target to take action or disclose information.

  • Unauthorized Disclosure

Intending to the data is quickly sent through the switch; the programmer can get the transmission and get the customer’s sensitive data.

  • Data Adjustment

In addition to being intercepted, the contents of the exchange can be maliciously or accidentally modified. The customer’s name, MasterCard number, and the amount transferred is useless in the face of such changes (studocu.com).

Prevent Ethical and Legal Issues in E-Business and E-Commerce

Prevent Ethical and Legal Issues in E-Business

  • Using Data Not Available to Fraudsters

In addition to being intercepted, the contents of the exchange can be maliciously or accidentally modified. Customer names, MasterCard numbers and amounts transferred are powerless in the face of such changes.

  • Create Special Guidelines that All Employees Must Follow

The company should start creating and developing policies that employees must follow. For example, implement rules such as employees not leaving their computers signed in or unlocked or sharing accounts with coworkers.

Prevent Ethical and Legal Issues in E-Commerce

  • Device Fingerprinting

This technique examines how customers connect to a website. Detecting suspicious connections through VPNs, proxies, or emulators is also helpful and detects connections between accounts. Many scammers will reuse the same devices and IP addresses, so reporting them can help someone eliminate the entire scam ring in one go.

  • Prioritize Cash On Delivery

When someonr are going to buy an item, make transactions by Cash On Delivery (COD). It allows for direct verification of the purchased product while minimizing fraud.

  • Understand What is Protected by Copyright Law

Copyright law is often confused with trademarks, patents, and licenses. These are all forms of intellectual property, but copyright is perhaps the easiest to acquire and infringe, intentionally or unintentionally. Dealing with the United States Understanding the provisions of the Copyright Act of 1970 and the Berne Convention is a good starting point.

References: Learn the Difference Between E-Business vs E-Commerce (thebalancemoney.com) Benefits and Limitations of e-Business: Dis-advantages, Solved Questions (toppr.com) Ethical and Legal Issues on E-Business by Faez Ghaus on Prezi Next Legal and Ethical Issues in E-Commerce – LEGAL AND ETHICAL ISSUES IN E-COMMERCE Exchange security – Studocu The Ethical Problems In E-Business (chron.com)

Ayu Dea Rosdiana Putri, Erwin Halim