What is the difference between E-commerce & E-business?

Women Placing Order

Online shopping has gained immense popularity in the past few years. Gone are the days when people used to go to shops physically to buy. These days, one click on the phone and the whole world is brought to you. 

Online shopping adds up to perks like a 7-day return policy, etc. which is opposite to what we see in physical shops. Wherein the owner asks us to buy a different product of the same price and refuse to return the money. This online service is possible due to two networks-E-commerce and E-business.

We have seen, many people often use these terms interchangeably, but are these two terms the same?

Well, in reality, E-commerce and E-business differ a lot with a variety of facts and figures. E-commerce is related to online buying and selling of goods and services. Whereas E-business is the conduct of the Business process on the internet.  Scroll below to have a look at both these terminologies in detail.

WHAT IS E-COMMERCE?

The trading of goods and services over the internet comes under E-commerce. It is limited to monetary transactions. In this type of online commercial transaction. The seller and buyer can communicate with each other online with no face-to-face interaction. The essential requirement of E-commerce is a website.

Basics of E-commerce: E-commerce involves buying a product and making payments online via the internet. E-commerce includes ordering a product, paying for the products, having it delivered, etc. Many business organizations sell through virtual markets along with their official websites. For example, if puma sells its merchandise from its website as well as from Amazon, then the transaction still comes under E-commerce in both cases.

Types of E-commerce: There are six types of E-commerce available.

  1. B2B (Business to Business): When the buying and selling of products and services take place between two businesses, it is known as B2B. This type often involves transactions like restocking of supplies and is often automated. For example, a construction company may have a contract with an e-commerce company to remain stocked on items like Gloves, Headgear, Safety jacket, construction material, etc.
  1. B2C (Business to Customers): When the goods or services are sold by a business to the customer is called Business to customer. This involves the selling of products by the business organization. This type is a lot easier and dynamic.
  1. B2C has developed greatly due to the endless growth of the internet and website. Due to this, today, you can see many online stores on the internet. These stores generally sell products such as electronics, books, digital music, movies, or e-books, clothes, food items, and cosmetics, etc. I can say you can find everything that you need in your day-to-day life. Just type the name of the product you want, and you find a lot many options to choose from. 
  1. C2C (Customers to Customer): It is the commercial transaction between customers. This kind of transaction generally occurs with the help of a third party existence. A perfect example of this eBay.
  1. C2B (Customer to Business): It is the commercial transaction between Customer and Business. In this type, the end-users or customers create a product or service, which a company uses to complete its business process or gain an advantage. An apt example of this is the websites for which freelancers offer their services like website design or logo creation.
  1. B2A (Business to Administrator): Any type of transaction that happens between the business and government using the medium of the internet comes under the category of B2A. For example, services such as to & fro of legal documents, social security, fiscal, and employments, etc.
  1. C2A (Customer to Administrator): This type includes all the types of transaction; a consumer does with the government. Education, taxes, social security, and health-related services are a few examples of C2A.

WHAT IS E-BUSINESS?

E-business is an abbreviation for electronic business. It is defined as the conduct of business processes over the internet. In simple words, if the electronic medium is used in all day-to-day activities, then it is termed as e-business. It consists of all kinds of pre-sale and post-sale efforts.

Basics of E-Business: Defining a true E-Business is quite a difficult task due to the digitalization and tech-driven attitude of people in the world. To understand E-business better, let us take some examples as follows:

  • Email marketing to attract customers is an E-business activity. The process of marketing is done electronically through this.
  • The way you conduct your business can also help you differentiate between a standard business and E-business. If you are an advisory firm for people to get the best Available contractors and construction material, then you are a business. However, if you run a website wherein people can compare their options, you become an e-Business.
  • Another example of E-business is a content management organization that takes care of the workflow of a developer, editor, publisher, and manager. When there is no electronic involvement, the physical movement of the workflow will conduct the process using paper files. Whereas, when you enable this process electronically, it converts to an e-business.

Types of E-business: There are two types of E-businesses.

  1. Pure play: If a business has only an electronic existence, it comes under pure play. Flipkart.com and Amazon.com are the best examples of this category.
  1. Brick and click: The business model in which business exists online, i.e., electronic and offline, i.e., Physical existence. This means, while business has a website that sells the services and products, online, they also have a physical store outside for selling the same products or services. Flipkart.com or Amazon.com is the best examples of this category.

COMPARISON CHART BETWEEN E-COMMERCE AND E-BUSINESS

The basis of comparisonE-commerceE-business
DefinitionBuying and selling of goods and services over the internet are termed as E-commerce.E-business is the online presence of any business. Thus, all the business activities are conducted through the internet.
Subset and SupersetIt is a subset of E-business.It is the superset of E-commerce.
RequirementIt generally requires the use of a website.It consists of the use of CRMs and ERPs that connect different business processes.
ConceptIt is a narrow concept confined only to the buying and selling of products.It is a broader concept involving a lot of processes like market surveying, logistic management, etc.
Is it limited only to monetary transactions?Yes.No.
Network UsedIt requires the mandatory use of the Internet.It involves the use of the internet, intranet, and extranet.
ExampleBuying a Hard-disk from the Amazon.com or Flipkart.Use of internet by Flipkart for completing processes like online customer support, supply chain management, etc.

FAQ:

What are the benefits of adopting E-commerce and E-business for your business?

The presence of Ecommerce and E-business has completely changed the way we do shopping. As a business owner, you can be benefitted in various ways through these modern tools for making your business a success. Have a look at the major benefits you gain by bringing your business on the internet:

It can save your money, and the time you lose while setting up a physical store. A store set up may include, renting a space, a bill for electricity & telephone, and furniture set up, etc., which can be completely avoided by means of E-commerce and E-business.

Flexible time for Business: As your business is now on the internet, it can make money for you even though you are fast asleep.

No restriction for geographic location: Using the internet, you cannot only span all time zones but can also reach across the globe. Whereas it is quite difficult to do if you have a physical store.

Easy to track your business growth: It can help you keep track of your products. It also provides you an indication of which product is doing best and worst in the market. Using this data, you can take the right actions to make your business grow.

Reach your customers easily: These two tools make it easy to reach your customers on time that helps in improving your business growth.

What does an E-business consultant do, and why should you hire him?

If you want your business to achieve the right level of growth, you have to make the right decisions that help to value your customers by providing the best services. In addition, if you own an E-business, then you must be aware of how challenging it can be because of the tough market competition. This is where you can take the help of an E-business consultant to make your business stand out. 

E-business consultants are the ones who advise the E-business owners in various ways to improve their business. These professionals are specialists in analyzing, advising, and providing solutions for E-business companies or organizations that use some form of online technology for business purposes. 

The right consultant will provide you unbiased feedback, offer you various ideas to increase sales, help you target the right audience, show you correct channels & platforms, can create a roadmap to success, etc. 

Question 3: What is an E-business infrastructure?

An E-business infrastructure is a combination of hardware such as servers and clients PCs in an organization, the network used to link these hardware and software applications used to deliver services to workers within E-business and even to its customers and partners. Thus, it is the architecture of hardware, software, network, data, and content used to deliver E-business services to the customers. 

Thus, we can conclude that E-commerce and E-business are not the same. In addition, E-commerce is an essential component of E-business. At present, a lot of companies have been doing e-business. However, since the past few years, some e-commerce websites have emerged like Flipkart, Amazon, etc.

3 thoughts on “What is the difference between E-commerce & E-business?

  1. I’m not sure where you’re getting your info, but great topic.
    I needs to spend some time learning more or understanding more.
    Thanks for great info I was looking for this information for my mission.

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