Difference Between E-Commerce and E-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.
Meaning of E-Commerce
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:
- Paying different taxes
- Ticketing over the internet
- Products sold or purchased online
- Online payments
- Online customer support
- Online accounting software
Examples of e-commerce are online retailers like Flipkart, Amazon, Paytm mall, and Myntra, sellers of digital goods like online services, ebooks, etc.
Meaning of E-Business
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:
- Supply chain management
- Setting up online stores
- Customer education
- Email marketing
- Monetary business transactions
- Online commercial transactions (selling and buying products)
Examples of e-business are e-commerce companies and their different internal business activities, classified site, auction site, software and hardware developer site, etc.
Difference Between E-Commerce and E-Business
The differences between e-commerce and e-business are as follows:
| Particulars | E-commerce | E-business |
| 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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Quick Summary
E-commerce involves online transactions; e-business covers web-based business operations. E-commerce includes online payments, while e-business encompasses all business activities online. Both e-commerce and e-business require websites and apps. Differentiating factors include scope, transactions, resources, and business models.
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