Difference Between E-Commerce and E-Business
Learn about E-Commerce and E-Business. Understand the main differences and similarities between them.
Izhar Ahmad19 Dec, 2023
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E-commerce and E-Business are often used interchangeably, but they have distinct meanings. E-commerce specifically relates to online transactions, encompassing activities such as purchasing goods and transmitting payment details over the Internet. On the other hand, E-business is a broader term that includes all business services and operations conducted through the web or electronic channels. This distinction persists even when the 'e' prefix is applied, highlighting the electronic nature of modern commerce and business activities.
E-Commerce Meaning
E-commerce involves having business activities and transactions online, utilizing the internet for functions such as buying and selling goods, making monetary transactions, and more. It is closely linked with the final steps of the business process, focused on contacts with end users. The important components of E-Commerce include websites and applications (apps), and its activities cover online product sales, tickets, payments, tax payments, financial software usage, and customer support performed over the Internet.E-Business Meaning
E-Business covers a larger range of business actions performed entirely through the internet. This includes various activities like getting raw materials, customer education, supply chain management, buying and selling goods and conducting monetary transactions. E-Business uses the internet, intranet, and extranet, and needs tools such as websites, apps, ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), etc. Its activities extend to setting up online shops, teaching customers, controlling the supply chain, executing monetary transactions, and adopting e-mail marketing strategies.Also Read- Basic Problems of an Economy
Types of E-Commerce and E-Business Models
There are many models used in both e-commerce and e-business, a few of those models are mentioned below:E-commerce Models:
Business to Consumer (B2C): This e-commerce model involves a business selling things or services directly to individual customers. An example is when a single customer gets clothes online. Business to Business (B2B): In this model, a business sells its goods or services to other companies. For instance, an online business gives video recording services for use in the marketing efforts of other companies. Consumer to Consumer (C2C): This model finds individual consumers selling their goods or services to fellow consumers. An example is a person selling personal antique records through an online site like eBay. Consumer to Business (C2B): This model includes individual users selling their goods or services to companies. For example, an online personality may offer to push a company to their community for a fee.E-business Models :
Pure Play: In this e-business strategy, all efforts and resources are committed to a single line of business. For instance, a business primarily sells handmade baseball caps, assuming it makes sales both online and offline. Bricks and Clicks: This approach works both online and offline, with sales created through real shops and online sites. As an example, a store selling baby and children’s clothes may allow customers to place orders and make payments both in-store and through an online shop.Also Read- Suit for Damages – Meaning, Types
Difference Between E-Commerce and E-Business
E-Commerce and E-Business differ in the following aspects: Meaning: E-Commerce: Involves conducting commercial transactions and activities online. E-Business: Encompasses all types of business activities carried out through the internet. Scope: E-Commerce: A more specific concept, falling within the broader realm of E-Business. E-Business: A comprehensive concept, encompassing E-Commerce as one of its components. Transactions: E-Commerce: Focuses on commercial transactions. E-Business: Involves various business transactions. Limitation: E-Commerce: Transaction scope is limited. E-Business: Transactions are not constrained. Activities: E-Commerce: Involves selling, buying, and monetary transactions online. E-Business: Encompasses customer education, raw material procurement, supply activities, and monetary transactions over the internet. Operation: E-Commerce: Primarily relies on a website. E-Business: Requires multiple websites, ERPs, and CRMs connecting diverse business processes. Resources: E-Commerce: Mandates the use of the internet. E-Business: Involves the use of the internet, extranet, or intranet. Business Models: E-Commerce: Suited for Business to Customer (B2C) contexts. E-Business: Appropriate in Business to Business (B2B) contexts. Coverage: E-Commerce: Addresses external/outward business processes. E-Business: Encompasses both internal and external business processes and activities.Looking for the Best Commerce Coaching?
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Similarities Between E-Commerce and E-Business
There are distinctions between e-commerce and e-business, there are noteworthy similarities:- E-commerce and E-business share a comparable business model.
- Both models necessitate the presence of a service-oriented website.
- In both cases, there is an emphasis on customer interaction as a key element in generating revenue.
E-Commerce and E-Business FAQs
Is E- Commerce an element of e-business?
E-commerce is the online buying and selling of products and services, and it is just one component of e-business. An e-business is the full process of doing business online.
What does the term "online business" mean?
An online business is one that is totally done via the internet.
What is the history of e-commerce?
In 1994, IBM, via its advertising firm Ogilvy & Mather, started to position itself as a pioneer in doing business over the Internet by using the phrase "e-business."
What are the objectives of e-commerce?
E-Commerce promotes profitable development by increasing consumer reach, lowering cost-to-serve, and providing distinctive customer experiences.
What are the three kinds of e-commerce?
E-commerce may be classified as business-to-consumer (B2C), business-to-business (B2B), or consumer-to-consumer (C2C).
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