Today, with an internet connection and Smartphone people are empowered to buy anything from anywhere around the world. It is because of two networks called E-business and E-commerce. People make use of both these terms interchangeably. Nevertheless, their meanings differ but in general they are related closely to one another.
You can read and learn more about the in-depth difference between e-commerce and e-business on Metapress, an online content resource.
E-commerce – Definition
Electronic Commerce or E-commerce is a process to buy and sell through internet. The sellers and the buyers don’t physically meet to complete the buying and selling process.
Several kinds of E-commerce
- B2B [Business to Business] – Each type of electronic transactions happened between two companies.
- B2C [Business to Consumer] – It is an e-business relationship between seller and final consumer.
- C2C [Consumer to Consumer] – All electronic transactions related to products and services between customer A with customer B. [e.g. third party helps – like Amazon]
- C2B [Consumer to Business] – Customers create product/service company uses in their business process. [e.g. freelancer graphic designer offering their creation service]
- B2A [Business to Administration] – Transactions carried online between a business and government.
- C2A [Consumer to Administration] – Transactions occurring between consumer and government. [e.g. education, health, taxes]
E-business – Definition
Electronic Business or E-business is just like e-commerce but there is more than selling and buying on the internet. Wide business processes are included like supply chain management, electronic order processing, customer relationship management, and more. Generally, it can said that e-commerce is a fragment of e-business. You will find e-businesses that concentrate only on a single specific product or service instead of various kinds. There are businesses that operate both online and offline. It means they have a website from where products or services get sold and simultaneously they even own a physical store.
E-commerce versus E-business
- E-commerce needs internet for connection but e-business can take advantage of intranet and extranet besides internet.
- E-commerce is subgroup of e-business because the former does only online buying and selling, while latter performs all kind of business activities conducted on the internet.
- E-commerce includes monetarily transactions, whereas e-business involves fiscal and associated activities.
Advantages of e-business and e-commerce
Both have revolutionized the way people shop. People just take pleasure in the benefits offered like convenience, options, and even affordability. Even businesses have gained a lot like –
- Reduce the time and money spent on business. [overhead cost]
- Flexible business hours [24/7]
- Remove boundary restrictions [spans time zone and worldwide reach]
- Easily monitor business development [analytic tools help]
- Reach target consumer quickly [chat and email features]
E-commerce is a huge fragment of e-business but e-business is not inevitably e-commerce.