Updated on: Nov 3rd, 2022
5 min read
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.
E-commerce refers to performing online commercial transactions and activities over the internet. It includes activities like making monetary transactions, selling and buying products, etc., over the internet. Applications (Apps) and websites are required for e-commerce. Some of the e-commerce activities include the following:
Examples of e-commerce are online retailers like Flipkart, Amazon, Paytm mall, and Myntra, sellers of digital goods like online services, ebooks, etc.
E-business refers to performing all types of business activities through the internet. It includes activities like customer education, procurement of goods/raw materials, supply activities, selling and buying products, making monetary transactions, etc., over the internet. Websites, Apps, Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), etc., are required for e-business. The e-business activities include the following:
Examples of e-business are e-commerce companies and their different internal business activities, classified site, auction site, software and hardware developer site, etc.
The differences between e-commerce and e-business are as follows:
|Meaning||It refers to performing online commercial transactions and activities over the internet.||It refers to performing every type of business activity through the internet.|
|Scope||It is a narrow concept and is a subset of e-business.||It is a broad concept and is a superset of e-commerce.|
|Transactions||Commercial transactions are carried out in e-commerce.||Business transactions are carried out in e-business.|
|Limitation||E-commerce transactions are limited.||E-business transactions are not limited.|
|Activities||It includes selling and buying products, making monetary transactions, etc., over the internet.||It includes customer education, procurement of raw materials, supply activities, making monetary transactions, etc., over the internet.|
|Operation||It mainly requires the use of only a website.||It requires using multiple websites, ERPs and CRMs, that connect different business processes.|
|Resources||It involves mandatory use of the internet.||It consists of the use of the internet, extranet or intranet.|
|Business models||E-commerce is appropriate in a Business to Customer (B2C) context.||E-business is appropriate in a Business to Business (B2B) context.|
|Coverage||E-commerce covers external/outward business processes.||E-business covers internal and external business processes/activities.|
E-commerce and e-business are different. However, they are interrelated and support businesses. E-commerce and e-business are emerging modes of business. They are continuously reshaping and evolving the business world.
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