What Is the Difference Between E-Business & E-Commerce?

Although the terms are often used interchangeably, there are distinct differences between e-business and e-commerce. The E stands for electronic networks, which refers to harnessing the power of tech to improve or modify established business approaches electronically.

Simply put, e-commerce is outward-facing and involves customer or client interaction – usually buying and selling. E-business is the behind-the-scenes digital machinations of making a company run smoothly and all business conducted online. It can involve e-commerce.

E-Business Examples

Strategizing a successful e-business is complex. The focus is on healthy internal standards and procedures, balancing output and overhead, efficiency and attention to detail, all to grow a thriving company. Examples of e-businesses include:

• Auction sites and classified sites. Facilitating other people’s abilities to sell merchandise is a solid e-business example, such as companies like eBay and Etsy.
• Software and hardware developers. These companies develop new ways to network businesses together, like Microsoft or Adobe.
• Digital marketing. This e-business is based on selling products or receiving commission through promoting products on the internet. For example, if a YouTube personality talks about a product and offers a discount or referral code, that is one aspect of a digital marketing business. Many vloggers and bloggers have been able to parlay this aspect into a profitable career.
• Setting up online storefronts. Owning a website that supports other e-businesses is an e-business. Companies like Wix and Squarespace make starting an online company “plug and play,” meaning they offer templates to register a domain name, craft a website, choose colors, generate marketing reports, accept payments, and keep track of inventory. All sorts of add-ons can increase how much this type of e-business makes.

E-Commerce Types

E-commerce is the buying and selling of products and services via the internet. There are three main e-commerce types: business-to-consumer, business-to-business and business-to-government. Online shopping allows customers to research products, place orders or submit requests for information, or to customize their orders.

Examples of Ways to Conduct E-commerce

• Online Services. Freelancers of all types, educators, therapists, coaches and even physical fitness trainers can all be accessed without ever leaving your home.
• Online retailers. These sites offer physical goods. Amazon and every traditional brick-and-mortar store with a website are examples of e-commerce.
• Sellers of digital goods. These companies sell the virtual counterparts of many real-world items such as ebooks, software, game additions and other virtual goods. Buying items in a video game is an example of purchasing digital products.

The U.S. Commerce Department reported Americans spent nearly $454 billion online in 2017. Up until now, there has been a division between e-business and regular business, e-commerce and traditional commerce, yet every year that division fades as conducting business online becomes as regular as ordering food delivery. What has never changed is that founding a business of any kind involves nurturing it into a thriving empire.