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Difference Between E-Commerce and E-Business

Primary Difference

The word e-commerce is the abbreviation of electronic commerce and e-business is electronic business. E-commerce is the part of e-business. In e-commerce people make transactions by buying and selling of goods and services on the internet. While in e-business the business is done on the internet. The types of e-commerce include b2b, b2c, c2c and c2b while in e-business the types are pure-play and brick and click. In e-commerce the suppliers, customers and distributors are involved from a diverse background. In e-business the all the internal and external processes are involved. For carrying out e-commerce processes it requires a website while in e-business is conducted at a larger scale so it requires the involvement of customer relationship management.as e-business not only involves before sale services but also after sales services. But e-commerce involves only the buying and selling. So it can be seen that e-commerce is a narrow concept and e-business is a broader concept. Furthermore, e-business requires the use of intranet, internet and extranet while e-commerce requires the use of only internet. When a person is involved in e-business them the maintenance is quite complex as it has 4 direction of integration. But e-commerce is not that complicated. The benefit of having a business on the internet is that the interaction with the customers is done quite easily and is quite effective. Moreover, while using such types of businesses we can see that they are cost-effective, have better productivity, more flexibility of business, there is a lot of economic benefit and we can easily compare our prices with that of the competitors. Similarly, E-commerce has limited monetary transactions; e-business has no limited monetary transactions. Moreover, less cost of marketing is required for the advertising purposes which have become an essential part for the business now and as there is a boom in this segment so utilizing this to the fullest would be effective. Similarly while doing e-business we can target the segment which on another corner, basically we can expand our reach to its fullest. We can also reduce the costs of transactions as all the work would be done online. And also these type of businesses have a very low overhead costs which are usually high when it is compared to other businesses which are operated physically. E-commerce carries out commercial transaction and e-business caries out business transactions.

Comparison Chart

BasisE-CommerceE-Business
Functioneople make transactions by buying and selling of goods and services on the internetThe business is done on the internet
TypesIncludes b2b, b2c, c2c and c2bPure-play and brick and click
RequirementRequires the use of website for representing the businessInvolves relationship building with customers, suppliers and distributors through CRM, Website.
TransactionLimited monetary transactionsUnlimited monetary transactions
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Definition of E-Business

E-business is the type of business which is done on the internet. The concept of e-business was introduced by IBM in 1998. In terms of the business model, the e-business has the same which involves the products, information flow, services, revenue sources etc. but is all applied online. They have many advantages which include cost efficiency, large reach and less overhead costs etc. but at the same time this type of business have certain threats which include security threat by hackers in terms of the confidential information regarding the business, customers, suppliers, competitors and distributors. So for this purpose they have to take security measures like encryption of their information, by using digital certificates which require the identity of the owner for access, digital signatures and the use of network protection etc. there are many types of e-business like pure-play and brick and click.

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Definition of E-Commerce

E-commerce is a branch of e-business where people make transactions by buying and selling of goods and services on the internet. The types of technologies through which it can be conducted include mobile phones and any other way through which we have an access to the internet. It was developed in 1971 or in 1972. There are various types of business application regarding e-commerce which includes online banking, instant messaging, social networking, online shopping, group buying, document automation regarding supply chain and logistics and digital wallet etc.

Differences in a Nutshell

  1. In e-commerce people make transactions by buying and selling of goods and services on the internet; in case of e-business the business is done on the internet.
  2. The types of e-commerce include b2b, b2c, c2c and c2b while in e-business the types are pure-play and brick and click.
  3. E-commerce requires the use of website for representing the business; e-business involves relationship building with customers, suppliers and distributors through CRM, website and ERP.
  4. E-commerce requires the use of the internet for the connection of the external environment; e-business requires the use of extranet, intranet and internet.
  5. E-commerce has limited monetary transactions; e-business has no limited monetary transactions.
  6. E-commerce conducts commercial transactions while e-business carries out business transactions.
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Conclusion

There are many forms of activities that can be carried out over the internet and the two terms that have been explained here are similar, people who want to carry out their businesses and the ones who want to explore the commerce side more will find this article really helpful and get to know the differences between them.

Harlon Moss

Harlon currently works as a quality moderator and content writer for Difference Wiki. He graduated from the University of California in 2010 with a degree in Computer Science. Follow him on Twitter @HarlonMoss

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