Difference between e-commerce and e-business

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difference b/w e-commerce and e-business

With the expansion of the market, people are enjoying the benefits of online services to set up their business there. Business centers no longer require to be present in the 4 walls, it is approachable from home sitting on the computer screen also. Gone are the days when people had to wait for hours on the banking queues, or they had to go to the market to buy stuff. Now, everything is online and transparent to the customer.

These days, most work we do is digital. Everything and everyone is online from. It is because it is quite simple and easy to use. It is easier to shop on Flipkart or Amazon and also time-to save as compared to go to the market or mall to buy something.  From dresses to groceries, from studies to banking, everything is online. That is why companies are setting up their business online only. With the expansion of mark online, there are 2 terms which have become very popular these are e-commerce and e-business.

E-COMMERCE: In simple terms, e-commerce is nothing but buying and selling of goods and product online with the involvement of money. It involves the transfer of Money from customer to the business via credit cards or debit cards. It is the limited form of e-business.

e-commerce images

E-BUSINESS: It is the superset of e-commerce. It involves the selling and buying of goods online with the exchange of information. This may or may not include monetary transaction. It is generally done between 2 business centers only.

e-business images

People use them as synonyms but there is a huge difference between them. Some of the key differences are given as.

  • E-COMMERCE deals with only selling and buying of goods over the internet. E-business, on the other hand, does much more than that like pre-selling and post selling engagement about the products.
  • We can safely say that e-commerce is the subset of e-business. Like e-commerce is e-business but not vice versa.
  • E-commerce involves monetary transaction over the internet. Like while buying or selling products or services, it requires some monetary transaction. Whereas, it is not the case with e-business. It may or may not involve the use of the monetary transaction.
  • E-COMMERCE just require a website to get it going. On the other hand, e-business requires many things like CRM to get it going.
  • Networking of e-commerce requires only over the internet but networking of e-business may take place over internet, intranet or extranet also.
  • E-COMMERCE is the B2C business. It means that buying and selling take place from business to clients. On the other hand, e-business is B2B which means buying and selling of goods and services are from business to business.
  • E-COMMERCE is extroverted on an approach that means it is having all the information about the products its description on the website for use. It is transparent to the user. And it is also very reliable. Whereas e-business is based on the ambivert approach that means it gives only the required information to the customers.

From all these key differences we can say that e-business and e-commerce are different things. They can’t be used as synonyms. It may seem like one but they are not. If e-commerce is sea, then e-business can be treated as the ocean. However, e-commerce is a major part of e-business but not all the e-business is e-commerce.

E-commerce or electronic commerce is a very limited subset of e-business. It only deals with the buying and selling of goods and services that too involving money related to it. If money is not involved, it means, it is not e-commerce. It is 4 types. :

  • B2B: when the transaction takes place from one business center to another.
  • B2C: when the transaction takes place from business center to client or customer.
  • C2C: when the transaction takes place from one customer to another.
  • C2B: when the transaction takes place from client to business center.

On the other hand, e-business is a superset of e-commerce. It deals with much more than just buying and selling of goods and services. It is also the exchange of information from one business to another. It involves much more things like procurement of raw materials, customer education, looking for suppliers etc. It covers all the internal processes of the business websites. It also involves pre-sale and posts sale transaction of the business products.

There are basically two kinds of e-business namely pure play and brick and click.

  • Pure play is nothing but a business center that is set up on electronic media only and it has no physical presence. Eg of these businesses is Facebook and many other social media network.
  • Brick and click is a business center having electronic as well as physical presence. These can operate only as well as physical also. Eg of these is banking services.

The reason for the growth of e-commerce and e-business website to so much extent over a decade is because they are very simple to use and very reliable also.

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