Difference Between Ecommerce And Ebusiness

Difference Between Ecommerce And Ebusiness

Difference Between E-commerce And E-business

The terms e-business and e-commerce are often used as a synonym. However, although there is an overlap between these two terms, they have different meanings. In particular, e-business is a more extensive term including all the business processes of electronic business, and e-commerce refers to buying and selling online. In other words, e-commerce is a subsection of e-business.

To understand clearly the differences between these two terms, let's discuss the meanings of e-business and e-commerce separately.

The Meaning Of E-business

E-business is the procedure of supporting the business using the internet and online technology. It is important to know that e-business is not conducted only online. It uses different tools and means of the internet to promote business, which can also be organised offline.

In a few words, we can say that the difference between conducting e-business and traditional business is connected with organising the business processes. It is a conventional business if someone sends out a consulting firm to help people choose a product. If the same company has a website allowing people to compare the available options of the product, then it is an e-business.

E-business processes can be conducted in-house through a company's resources and outsourced to a vendor company specialising in the specific service.

Examples of E-business:

  • A software system can be used for content management. The system may manage the workflow between the creator of content, editor and publisher. All these processes must be done electronically to be considered as e-business.
  • Marketing management through e-mail, in which case a company reaches its existing and potential clients.
  • There are online tools for human resources management, which include tools such as job boards, online application processors, systems for gathering data about employees, etc.

The Meaning Of E-commerce

E-commerce is purely the transactions of online buying and selling of products and services. E-commerce includes all the elements of the sale, particularly product ordering, payment and delivery. It can also refer to a certain part of the process of e-commerce. For example, e-commerce can allow buyers to place an online order for good and then pick it up at the store.

E-commerce can be conducted through virtual marketplaces such as Amazon and the store's websites.

Types Of E-commerce

E-commerce has several types, depending on the category of the parties of the current business model. Examples of different kinds of e-commerce can be the following:

Business To Consumer (B2C)

This is a case when a business sells products or services to an individual customer. An example of such a transaction can be when a person purchases shoes online.

Business To Business (B2B)

In this case, a business sells products or services to another business. An example can be where an online business sells a software service to another company.

Consumer To Consumer (C2C)

This is an e-commerce model where an individual consumer sells its products and services to other consumers. A typical example is when people sell their goods on eBay.

Consumer To Business (C2B)

In this model, an individual consumer sells products or services to a business. For example, a person can sell digital marketing services to a business.

Key Differences Between E-commerce And E-business

To summarise, we can define the critical differences between e-commerce and e-business.

  • E-commerce is a part of e-business, as it refers only to online commercial transactions. E-business performs all types of online business activities.
  • E-commerce allows implementing limited types of transactions, while in e-business transactions are limitless.
  • E-commerce assumes an online monetary transaction process, while e-business includes any business model that uses online technology (such as procurement of raw materials for production, customer education, marketing, etc.).
  • The key beneficiary of e-commerce is the consumer, while in e-business, the beneficiary is not only consumers but also business partners, suppliers, etc.
  • E-commerce involves the use of the internet, while e-business can also use intranet or extranet.
  • In the case of e-commerce, companies usually utilise only websites. E-business needs to use different websites, CRMs, etc., to connect different business processes.
  • E-commerce is more relevant in the context of the B2C business model while e-business relates more to B2B transactions.
  • E-commerce is connected mainly to external business processes, and e-business covers both internal and external activities.

To conclude, it is crucial to understand that e-commerce and e-business do not compete. They instead promote businesses in different ways. And if you have a business idea, you have to understand these differences and decide how you can use the power of the internet and online technology to promote your business.

Scroll down to read our indepth Ecommerce Platforms guide. What you should know, Ecommerce Platforms features, price plans and support. Pros and Cons of Ecommerce Platforms as a ecommerce, everything is explained below.

Overview of Difference Between Ecommerce And Ebusiness

Shopify is a software company that specialises in ecommerce software for small to enterprise level businesses.

Shopify is listed as the best ecommerce software related to Ecommerce Platforms. Shopify was founded in 2006 in Ottawa, Canada and currently has over 6,124 employees registered on Linkedin.

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