An e-business is defined as any business that is drawing a majority of its income from selling their products or service in an online format.
There are many advantages to running an e-business, as opposed to a traditional business. The startup costs for doing business online are relatively low compared to opening up a store. All you need is an internet connection and a website. There can also be added costs for advertising and setting up a merchant account so you can accept payments.
However, overall, the costs are much lower than opening a store in a building. You can do business directly from your home, and with certain suppliers, you don’t even have to have inventory. Another advantage to doing business online, as opposed to locally, is that you can sell to the entire world instead of just your local community.
E-business can also be used to refer to any business practices that are handled electronically (such as supply chain management, order tracking and processing, and payroll).