The terms e commerce vs e business relate to different types of running businesses online. The former defines all the purchase and sale processes carried out using the internet and computer networks while e business explains more about running businesses over the Internet. Though some people might claim that e commerce and e business are virtually similar, others view them differently to the operations they are involved with, scope of work, and their business model. In the following article, we shall discuss what is e commerce, and what is e business, and also give a detailed comparison between e commerce vs e business to clarify the difference for students.
What is E Commerce?
E commerce, or electronic commerce, is the buying and selling of goods and services over the internet. It is an online transaction between businesses and consumers, requiring a digital platform to facilitate the exchange. Some popular e commerce platforms include Amazon, Flipkart, Myntra, and Snapdeal.
Key Features of E Commerce
E Commerce is a virtual marketplace in which businesses sell their goods and services online. It depends on technology to make transactions, payments, and interactions with customers more efficient.
- Online transactions: All purchase and sale are done online.
- Online Transactions: Cashless payment methods are through debit/credit cards, UPI, wallets, or net banking.
- Digital Storefronts: Digital Storefronts Businesses sell and offer products on websites or through apps.
- Customer Contact: e commerce primarily sells to customers without integrating internal business operations.
What is E Business?
Electronic business or e business is the use of the internet and digital technologies to manage all of a firm’s operations. In addition, while e commerce deals only with online transactions, e business covers all business aspects, including marketing, supply chain management, customer service, as well as internal communication.
Key Features of E Business
E Business deals with all facets of a company that are found online. Besides selling online, it involves online marketing, operating, managing clients, and the communication process altogether to enhance performance and growth.
- Covers All Business Processes: It covers all the business processes, including online marketing, customer relationship management (CRM), and digital operations.
- Not Only Sales: Although e-commerce focuses on sales, e business is not limited to that. It involves inventory management, customer support, and supply chain operations.
- Utilizes Digital Technologies: Businesses use emails, websites, social media, cloud computing, and data analytics.
- Internal and external communication: E business involves online training for employees, telecommuting, and automated operations.
E Commerce vs E Business
E commerce and e business are two concepts in the digital world, but they have different uses. e commerce focuses on buying and selling online, whereas e business covers all the business activities carried out online, including operations, marketing, and management.
Definition
E commerce can be described as simply purchasing and selling goods and services online. Business-to-consumer e commerce involves transactions between businesses and consumers, usually with the help of digital interfaces. The Internet, mobile applications, and online marketplace provide a venue where business sells their product directly to the market.
E business encompasses all activities conducted on the Internet. It encompasses e commerce, but above all, it involves using digital tools to manage operations, customer relationships, and business strategies. The primary objectives are increased efficiency, lower costs, and an increased outreach through the utilization of technology by companies.
Scope
E commerce has a narrow scope because there are only online transactions. Businesses sell products and services using websites or applications. A customer visits these platforms, chooses items they want, pays for them, and makes the purchases. The process ends when the transaction is complete.
E business is an overarching scope since it includes e commerce and other activities. The business operations under its scope include supply chain management, customer service, marketing, and data analytics. The companies implement digital tools for the betterment of managing business activities in the making of informed decisions.
Technology Used
E commerce relies on websites, payment gateways, and shopping carts. With these technologies, customers are able to browse the product, make payments, and track their orders. Credit card, digital wallets, net banking, and other secure payment systems ensure that the transaction is completed safely.
E business employs advanced technologies like CRM (Customer Relationship Management), ERP (Enterprise Resource Planning), AI (Artificial Intelligence), cloud computing, and social media. All these tools facilitate easy interaction with customers and streamline business operations while effectively managing data.
Focus Area
E commerce focuses mostly on customers and online sales. Businesses are mainly interested in the attraction of buyers, a seamless shopping experience, and quick delivery. Customer satisfaction and user experience are important elements for success.
E business focuses on internal and external processes. It manages suppliers, business strategies, data analysis, and operational efficiency. Businesses apply technology to perform various activities more optimally and to grow sustainably.
Examples
E commerce portals like Amazon, Flipkart, and eBay facilitate buying and selling of products on the web. They offer many categories, payment security, and doorstep delivery, making it easy to shop.
E business comprises companies such as Google, Infosys, and PayPal that operate online businesses beyond selling. Google offers digital services, Infosys provides IT solutions, and PayPal facilitates online transactions for businesses worldwide.
| Factor | E Commerce | E Business |
| Definition | Buying and selling goods/services online. | Conducting all business activities online. |
| Scope | Limited to online transactions. | Covers the entire business process, including internal operations. |
| Technology Used | Websites, payment gateways, shopping carts. | CRM, ERP, cloud computing, AI, social media. |
| Focus Area | Customers and online sales. | Internal and external business processes. |
| Examples | Amazon, Flipkart, eBay. | Google, Infosys, PayPal. |
E Commerce vs E Business FAQs
1. What is the difference between e commerce and e business?
e commerce is different from e business because it is only about selling, whereas an e business has marketing, supply chain management, and more for customers.
2. Is Amazon an e commerce or e business company?
Amazon is e commerce and also an e business because it sells things online but manages a relationship with the customer, their logistics, and other digital services.
3. Can a business be an e business without e commerce?
Yes, a company like Google or Infosys is an e business because they operate digitally but do not sell physical products online.
4. Which is better: e commerce or e business?
It depends on the business goal, e commerce is better for companies focused on online sales, while e business is ideal for businesses that need complete digital transformation.
5. What are some examples of e business?
Google, PayPal, Wipro, and Infosys are examples of e business because the businesses use digital technologies in other aspects of business apart from the sale end.
