What is the difference between e-commerce and e-business?

Today we are in a world where ICT is evolving rapidly. From banking to schools to online shopping, the Internet has become the need of the hour. Digital technologies have transformed how we learn and communicate in society and business. 

Now we can do anything with just a click of the mouse by sitting anywhere in the world. Especially in online business, things have become more transparent, accessible, and cheaper. 

Due to the advent of e-commerce, there is a boom in small and online businesses. People often get confused about these two terms, i.e., e-business and e-commerce. However, there is a lot of difference between the two terms. 

This blog will help you understand the critical difference between e-commerce and e-business.

What Is E-commerce?

In simple words, e-commerce refers to the transaction of goods and services on the Internet or the web. It is also called electronic Commerce and usually covers monetary transactions online. Several e-commerce retailers exist in India, like Amazon, Flipkart, Myntra, etc.

The total sales of e-commerce are estimated to amount to almost $765 billion.

Benefits Of E-commerce

• Expansion of markets
• Low cost of operations
• Small firms can co-exist with large firms
• Competitive advantage

Limitations Of E-commerce

• Flexible
• More operations available
• Quick
• Cost-effective
• Wider reach
• Employment potential

E-commerce Models

There are several e-commerce models which are used in business-

1. Business to Consumer (B2C)

The e-commerce business sells goods or services to an individual consumer. For example, when an individual consumer purchases products online.

2. Business to Business (B2B) 

In the B2B e-commerce model, a business sells its goods or services to another business. For example, an online business selling video editing services for other businesses.

3. Consumer to Consumer (C2C) 

In this e-commerce business model, individual consumer sells their goods or services to other consumers. For example, a person selling their items through an online platform like OLX.

4. Consumer to Business (C2B) 

An individual consumer sells their goods or services to a business. For example, Influencers these days are promoting a business to their audience on Social Media. 

5. Intra B Commerce

Here, both parties involved in the electronic business are from within a business organization.

What Is E-business?

It refers to a type of business where business activities are conducted through the Internet.  It includes several activities like procuring raw materials, customer education, supply activities, etc., over the Internet.

Websites, applications, Customer Relationship Management, etc., are required for e-business. 

Several activities are conducted in E-Business:

• Setting up of Online store 
• Customer education
• Buying and selling of products online
• Monetary business transaction
• Supply Chain Management
• Email marketing

Advantages Of E-business

• Cost-effective – e-Business helps do things faster, cheaper, and more efficiently. It helps you do more with less. It implies that you can save time, money, and effort.
• Instantaneous Medium – The most significant advantage of e-business is that it speeds up work and communication. It relies on electronic communication, which in turn allows timely decision-making and faster exchange of information.
• A better way for marketing – One of the benefits of e-business is its ability to help companies market their products more cheaply. It allows for lower consumer prices, which drives more sales. The other benefit that internet marketing offers is more control over their brand. Companies can control how their company is portrayed on various websites through social media, which has increased positive consumer reviews and positive word-of-mouth advertising.
• Easy Formation – e-business is easier to set up than a traditional business. The Internet makes setting up your small or big business very easy. Many restaurants that do not have a physical space run their business online by representing their menu online.
• Convenience – e-business is very convenient and can be accessed 24×7 and 365 days. Even the personnel can work wherever they are and whenever they may want to.
• Global Access – e-business has a global reach and allows the seller to access the global market. Also, the buyer is free to choose products from anywhere in the world.

Limitations of E-business

Every business has certain risks and disadvantages as doing e-business is not easy. It is always better to be aware of the limitations as well.

• Low/No Personal Touch – e-business lacks the warmth of personal interactions. This business may not be suitable for products requiring a high personal touch.
• Increased Risk – Well, every business comes with certain risks. However, in e-business, there may be cyber security and identity issues. It becomes difficult to establish the identity and location of the parties. There may be issues like hacking.
• Resistance – many people still have not adjusted to the new technology and are resistant to conducting business online.

Difference between e-commerce and e-business

These two terms are used interchangeably, yet a more precise definition would help distinguish between the two. Business is a broader term compared to Commerce and comprises various transactions and functions conducted electronically, including the transactions of e-commerce.

Let us now look at the difference between e-commerce and e-business.

S.noE-CommerceE-Business1.It refers to conduct commercial activities through the internet.It refers to conduct all types of business activities through the internet.2.It is a narrow conceptIt is a much wider concept3.Commercial transactions are carried outBusiness activities are conducted4.Limited TransactionsTransactions are not limited5.It requires using only one websiteIt uses multiple websites, CRMs, ERPs6.Mandatory use of the internetUses internet, intranet, and extranet7.Appropriate in a B2C contextAppropriate in B2B context8.Covers the external business processCovers internal as well as external business process

Conclusion

Hopefully, this blog has helped you understand the concept and significant points of difference between E-Commerce and E-Business. For assistance on any e-commerce or e-business automated marketing-related work, you can schedule a demo with NotifyVisitors.

FAQs

1. What are the challenges of E-Commerce?

Security issues, Competition, Order Fulfillment, and Return and Refund Policies can significantly challenge E-Commerce.

2. What is the impact of E-Business on a firm?

E-Business enables a firm to improve its services and have access to customers outside the local and regional market. It also increases customer visibility and reduces marketing and transaction costs compared to a traditional business.

3. Which is better- ECommerce or E-Business?

Well, E-Commerce and E-Business are two separate terms and have their advantages and limitations. E-Commerce is a subset of E-Business.