Some people use the terms "e-business" and "e-commerce" interchangeably, but they aren't synonymous. To put it simply, e-commerce refers to buying and selling online, while e-business encompasses all business conducted online. E-commerce can be viewed as a subset of e-business. If you plan on starting or working closely with an internet-based company, you should strive to understand all the ways these two concepts are unique.
E-Business Basics
In a tech-driven world, it might be tough to tell which businesses are truly e-businesses. Perhaps the best way to understand e-businesses is with the help of examples:
- Email marketing to existing and/or prospective customers is an e-business activity. It electronically conducts a business process—in this case, marketing.
- A company that builds and sells an online system that tracks inventory and triggers alerts at specific levels is an e-business. Inventory management is a business process, and when facilitated electronically, it becomes part of e-business.
- A content management system that manages the workflow between a content developer, editor, manager, and publisher is another example of an e-business. In the absence of an electronic workflow, the physical movement of paper files would conduct this process. By electronically enabling it, it becomes an e-business.
- Online tools for human resources can be produced by an e-business. These tools include online job boards, application processers, and systems that collect and maintain data about employees.
Many processes that are described as e-business might be handled in-house through a company's network, or it might be something the company outsources to a provider that specializes in whatever service is desired. By producing them in-house, standard businesses may incorporate some elements of e-business into their plan—the two types of businesses are not mutually exclusive.
Sometimes the difference between a standard business and an e-business is just a matter of how business is conducted. For example, if you are an advisory firm helping people choose the right furniture, then you are a business, but if you run a website where people can compare furniture options, then you are an e-business.
E-Commerce Basics
Compared to e-business, the definition ofe-commerce is clearer. In its basic form, it involves placing orders and making payments online. E-commerce comes in multiple forms. In business-to-consumer (B2C) e-commerce, a business sells goods and services to consumers through its website. Many brick-and-mortar retailers have adapted to the popularity of e-commerce, and they now conduct sales through their websites as well as in their stores.
E-commerce sales can include every element of a sale: ordering a product, paying for a product, and having it delivered. It might also involve only part of the process. For example, a customer might order a product online to be picked up at the store. Payment might be conducted online or at the store when the item is picked up. Either way, the transaction still involved an element of e-commerce.
Many businesses also sell through virtual marketplaces in addition to their own websites. For example, a popular brand like Nike will sell shoes from its website, as well as through an online retailer like Amazon. Whether you buy it from Nike's website or Amazon's, the transaction is still an example of e-commerce.
Business-to-Business (B2B) E-Commerce
While the average consumer might not realize it, much of the e-commerce that takes place around the world involves B2B relationships. This type of e-commerce often involves transactions like restocking necessary supplies, and very often it will be automated. For example, a landscaping company could have a contract with an e-commerce company to remain stocked on items like garden shears, gloves, and fertilizer. To maintain efficiency, the landscaping company might have an automated process in place to track supply levels. As crews use fertilizer on the customers' yards, and the inventory drops below a set level, an automated system will place an order for more.
FAQs
E-commerce refers to online transactions, while e-business encompasses all online business services. E-commerce activities include online payments, product buying/selling. E-business includes customer education, procurement, supply activities.
What is the difference between e-business and e-commerce? ›
Some people use the terms "e-business" and "e-commerce" interchangeably, but they aren't synonymous. To put it simply, e-commerce refers to buying and selling online, while e-business encompasses all business conducted online. E-commerce can be viewed as a subset of e-business.
What is the main difference between e-business and e-commerce quizlet? ›
Ecommerce is buying and selling of goods and services over the internet. Ebusiness includes ecommerce as well as servicing customer accounts, collaborating with partners and exchanging real time info. What are the benefits and challenges associated with ebusiness?
What is the difference between ecommerce and ebusiness group of answer choices? ›
Key Differences Between eCommerce and eBusiness
E-commerce primarily deals with online buying and selling transactions, while e-business encompasses a broader spectrum, including supply chain management, customer education, and internal processes.
What is the difference between commerce and business? ›
The word commerce is not interchangeable with business, but is rather a subset of business. Business includes sourcing, manufacturing, production, and marketing whereas commerce pertains to the distribution side of the business, specifically the distribution of goods and services.
What is the difference between e-business and M commerce? ›
Electronic commerce or e-commerce is the act of buying and selling goods electronically using the Internet. M-commerce is a sub-part of e-commerce. M-commerce is the buying and selling of goods using mobile, handheld devices such as smartphones or tablets.
What is an example of ebusiness and ecommerce? ›
For example, an independent psychiatry practice that offers a telemedicine option to patients would be an example of an e-business. Ecommerce, on the other hand, refers to the specific sector of e-business that's concerned with the online transaction of goods and services.
What are the main differences between business-to-business and business-to-consumer e-commerce? ›
B2B ecommerce utilises online platforms to sell products or services to other businesses. B2C e-commerce targets personal consumers. A company that sells office furniture, software, or paper to other businesses would be an example of a B2B company. B2B ecommerce tends to be more complex than B2C ecommerce.
How is e-commerce different? ›
Unlike a physical store that limits a business to its geographical area, an e-commerce website allows you to reach customers anywhere. Once customers can place orders online and you can ship a product to their location or provide a service, there's no limit to your reach.
Which is big e-commerce or e-business? ›
E-Commerce: Operates as a subset of e-business, focusing on the transactional aspects of buying and selling goods and services online. Electronic Commerce: means taking things to a higher level by strategically incorporating digital technologies into every part of the business model to help the company reach its goals.
E - business is buying and selling of goods or services online; ecommerce includes ecommerce and all activities related to internal and external business operations.
What is the difference between ecommerce and Internet commerce? ›
Here are some of the key differences: Scope: Ecommerce refers specifically to the buying and selling of goods or services online, while digital commerce encompasses all aspects of the consumer journey, from research to post-purchase support.
What is the difference between e-commerce and e shopping? ›
According to Candice V Cunningham, founder of the nonprofit organization The Black Ecosystem in Chicago, e-commerce refers to all aspects of operating a business online, and online shopping refers to the online selling and purchasing of goods and services.
How is e-commerce different from business? ›
E-business and e-commerce can be used interchangeably. However, e-commerce refers to conducting online transactions, while e-business encompasses all the business services and activities operated utilising the web.
What is the difference between e-commerce and a business quizlet? ›
E-business encompasses all the activities a company performs in selling and buying products and services computers and communication technologies (online shopping). E-commerce is buying and selling goods and services over the internet.
What is e-commerce? ›
Ecommerce or "electronic commerce" is the trading of goods and services online. The internet allows individuals and businesses to buy and sell an increasing amount of physical goods, digital goods, and services electronically.
Is Amazon e-commerce or e-business? ›
Amazon.com is an e-commerce platform that sells many product lines, including media (books, movies, music, and software), apparel, baby products, consumer electronics, beauty products, gourmet food, groceries, health and personal care products, industrial & scientific supplies, kitchen items, jewelry, watches, lawn and ...
Is e-commerce the same as digital business? ›
While e-commerce is the narrower scope of e-business, digital business (d-business) goes further and describes not only the buying and selling of goods and services, but also servicing customers, collaborating with business partners and conducting electronic transactions within an organisation.
What is e-business in simple words? ›
E-Business (electronic business) is any process that a business organization conducts over a computer-mediated network. Business organizations include any for-profit, governmental, or nonprofit entity.
