E-Business Types & Examples | What Is E-Commerce? – Video & Lesson Transcript | Study.com

Edith Forsyth has taught High School Business for over five years. They have a bachelor’s degree in business administration from University of Evansville, Evansville, Indiana.

What Is E-Business?

The internet continues to revolutionize many aspects of the modern world, including business. The conduct of business activities, transactions, and processes via the internet is called e-business (electronic business). This e-business definition includes activities and processes such as customer servicing, production control, business partnering, buying and selling goods and services, processing payments, employee services, and information transfer.

Notably, e-business encompasses a range of services and functions. Modern corporations continually seek strategies to redefine their business approach. Internet platforms allow these enterprises to enhance the availability and accessibility of their products and services. Conducting business over the internet also allows companies to overcome geographical barriers and reach a wide market.

The term “e-business” was first used in the 1990s following the launch of the first web browser. The 1990s were characterized by the emergence of the internet, which led to the emergence of e-commerce platforms such as eBay and Amazon. These two companies are excellent examples of e-businesses.

E-Commerce Business Definition

The best e-commerce definition states this business model is conducted through the internet. E-commerce (electronic commerce) businesses transfer money, sell goods, buy products and share information through the internet and social media platforms. It is important to note the similarity between e-commerce and e-business as both are executed online. Electronic commerce is part of the larger e-business industry. However, e-commerce business focuses more on buying and selling goods and services while e-business deals with all activities of running an online enterprise.

Also known as internet commerce, this business model can be conducted through smart devices such as smartphones and computers. Over the years, e-commerce has expanded exponentially. As such, the modern consumer can buy virtually everything through the internet, including electronics, cars, tickets, books, food, and music. The business model has expanded into the financial sector. Today, online banking and stock investing are also transacted via internet platforms.

E-commerce is an efficient substitute for traditional physical stores. These physical stores, also known as brick-and-mortar stores, are geographically limited. However, some businesses maintain both business models. One of the biggest advantages associated with internet commerce is increased distribution efficiency. Essentially, the business model supports four primary market segments, namely, Business to Business (B2B), Business to Consumer (B2C), Consumer to Consumer (C2C), and Consumer to Business (C2B). The market segments are categorized according to the seller and the buyer.