What is the Difference Between Ecommerce and Ebusiness?

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E-commerce and e-business are related but distinct concepts in the world of online transactions and business activities. Here are the main differences between them:

  1. Scope: E-commerce refers to performing online commercial transactions and activities over the internet, such as buying and selling products, making monetary transactions, and online ticketing. E-business, on the other hand, encompasses all business activities and processes conducted through the internet or other electronic channels, including procurement of raw materials, customer education, supply activities, and more.
  2. Transactions: E-commerce is limited to commercial transactions, while e-business includes both internal and external business processes and activities. E-business is considered a superset of e-commerce, as it involves a broader range of activities beyond just commercial transactions.
  3. Internet Usage: E-commerce is conducted exclusively on the internet, while e-business can be conducted on the internet, intranet, or extranet. E-business incorporates online technologies into the business model, which could include using social media marketing for a physical store or employing online tools for internal processes.
  4. Stakeholders: In e-commerce, the main stakeholders involved are customers and businesses, while e-business affects customers, business partners, suppliers, and other parties involved in the business process.

Examples of e-commerce include online retailers like Amazon and Flipkart, while examples of e-business include companies that incorporate online technologies into their business model or internal processes.

Comparative Table: Ecommerce vs Ebusiness

Here is a table comparing the differences between e-commerce and e-business:

Feature E-commerce E-business
Definition E-commerce refers to the transaction of goods and services online, focusing on online monetary transactions and the sale of physical goods. E-business refers to any business that incorporates online technologies into its business model, including online transactions, but also other aspects such as online marketing, customer relationship management, and enterprise resource planning.
Focus Online transactions and sales of physical goods. A wider range of activities, including online transactions, offline transactions, business partners, suppliers, customers, and other stakeholders.
Types of transactions E-commerce transactions are purely internet-based. E-business transactions can be conducted on the internet, intranet, or extranet, and can include online and offline transactions, as well as transactions with business partners, suppliers, and other stakeholders.
Sources of revenue and income E-commerce businesses are completely reliant on online sales. E-businesses have different sources of revenue and income, in addition to e-commerce transactions.
Customer interaction E-commerce businesses focus on customers who are transacting online. E-businesses include interactions with business partners, suppliers, customers, the government, and other stakeholders, in addition to online transactions.

In summary, e-commerce is a component of e-business, focusing specifically on online transactions and the sale of physical goods. E-business, on the other hand, is a broader concept that encompasses the use of online platforms and technologies in various aspects of a business, including online and offline transactions, marketing, customer relationship management, and enterprise resource planning.