Difference between e-commerce and e-business

Unfortunately, e-business and e-commerce are sometimes used interchangeably; however, they are completely two different terms. The confusion lies in the word commerce which is often considered as business. In English language, commerce can be considered as business, however, when these words are attached with the letter e, it brings separate meanings. This article will highlight some of the difference between e-commerce and e-business. Amongst various differences between e-commerce and e-business, some of the major differences are described here:

  • E-business can be considered as an umbrella term and e-commerce is a small part of the broader term. In other words, e-commerce is just a subset of e-business.
  • The term e-commerce usually refers to monetary transactions that mainly include the buying or selling or products or services. However, other business functions like marketing, customer education, customer support, getting raw materials etc come under the term of e-business as they all are business functions.
  • If you are successfully selling something, that is considered as an e-commerce activity. However, brining customers to your website by efficiently marketing your product and maintaining the standard of your website is an e-business activity. Moreover, educating your customers about the website and about the products or services is also an e-business activity. To order to have a successful e-business, you need to get the appreciation of the customers and you need to use tools and techniques that can help you in bringing healthy amount of customers towards your website. Moreover, your website needs to have a better search engine rating which is an e-business activity.
  • Let us look at a real-life example. We all know that Dell sell its computers, laptops, computer accessories, printer, monitors etc online. How it can relate to e-business? The first thing that happens is that the visitor visits the website of Dell and navigates it using the navigational tools. As the website is quite user friendly, the visitor doesn’t feel any difficult in finding the particular computer or laptop he/she is looking for. He/she finds all information related to that product. This information includes the pricing information as well as technical information about the product. The information should be precise, clear and should be able to clear most of the doubts of the visitor. Note that there hasn’t been any monetary transaction done yet, what all going so far comes under the term of e-business.
  • The term e-commerce is often described as outward process as it involves processes like reaching the customers, any external partner, external suppliers etc. On the other hand, e-business covers various internal processes like content management, risk management, inventory management, production management, finance management and other internal business processes.

If you are willing to start your e-business, you must think about all business processes while outsourcing the e-commerce services using various web development companies or freelancers like those that are available in London. E-commerce can be considered as an online way of transaction while e-business can be described as the management of various business functions that enable successful transactions and growth of the business.Rich Text AreaToolbarBold (Ctrl + B)Italic (Ctrl + I)Strikethrough (Alt + Shift + D)Unordered list (Alt + Shift + U)Ordered list (Alt + Shift + O)Blockquote (Alt + Shift + Q)Align Left (Alt + Shift + L)Align Center (Alt + Shift + C)Align Right (Alt + Shift + R)Insert/edit link (Alt + Shift + A)Unlink (Alt + Shift + S)Insert More Tag (Alt + Shift + T)Toggle spellchecker (Alt + Shift + N)▼
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Unfortunately, e-business and e-commerce are sometimes used interchangeably; however, they are completely two different terms. The confusion lies in the word commerce which is often considered as business. In English language, commerce can be considered as business, however, when these words are attached with the letter e, it brings separate meanings. This article will highlight some of the difference between e-commerce and e-business. Amongst various differences between e-commerce and e-business, some of the major differences are described here:
E-business can be considered as an umbrella term and e-commerce is a small part of the broader term. In other words, e-commerce is just a subset of e-business.
The term e-commerce usually refers to monetary transactions that mainly include the buying or selling or products or services. However, other business functions like marketing, customer education, customer support, getting raw materials etc come under the term of e-business as they all are business functions.
If you are successfully selling something, that is considered as an e-commerce activity. However, brining customers to your website by efficiently marketing your product and maintaining the standard of your website is an e-business activity. Moreover, educating your customers about the website and about the products or services is also an e-business activity. To order to have a successful e-business, you need to get the appreciation of the customers and you need to use tools and techniques that can help you in bringing healthy amount of customers towards your website. Moreover, your website needs to have a better search engine rating which is an e-business activity.
Let us look at a real-life example. We all know that Dell sell its computers, laptops, computer accessories, printer, monitors etc online. How it can relate to e-business? The first thing that happens is that the visitor visits the website of Dell and navigates it using the navigational tools. As the website is quite user friendly, the visitor doesn’t feel any difficult in finding the particular computer or laptop he/she is looking for. He/she finds all information related to that product. This information includes the pricing information as well as technical information about the product. The information should be precise, clear and should be able to clear most of the doubts of the visitor. Note that there hasn’t been any monetary transaction done yet, what all going so far comes under the term of e-business.
The term e-commerce is often described as outward process as it involves processes like reaching the customers, any external partner, external suppliers etc. On the other hand, e-business covers various internal processes like content management, risk management, inventory management, production management, finance management and other internal business processes.
If you are willing to start your e-business, you must think about all business processes while outsourcing the e-commerce services using various web development companies or freelancers like those that are available in London. E-commerce can be considered as an online way of transaction while e-business can be described as the management of various business functions that enable successful transactions and growth of the business.
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14 Comments

  1. brad
    16th August 2009

    Wow, that’s a precise analysis between e-business and e-commerce, it help me to clarify the difference between the two words, thank you.

    Reply
  2. Sparsh
    16th August 2009

    Gr8 Comparison

    Reply
  3. alpee
    16th August 2009

    nice…
    thanks as it help me to knw abt d diff b/w ecommerce and ebusiness……
    thanks again

    Reply
  4. Catz
    16th August 2009

    Thanks! That was really simple yet insightful.

    Reply
  5. blessed
    16th August 2009

    it is great it help me in my exam thanks

    Reply
  6. Apurba
    16th August 2009

    good job done buddy…. quite a help for my exams…

    Reply
  7. jude peiris
    16th August 2009

    thanks

    Reply
  8. jeba
    16th August 2009

    thanks to give such a wonderfull difference

    Reply
  9. Inusah
    16th August 2009

    great pierce.it really help me in understanding the core of e- business and e-commerce.

    Reply
  10. elahe khakpour
    16th August 2009

    i think it is just the contrary, ecommerce is a huge concept than ebusiness

    Reply
  11. Laxmi
    16th August 2009

    That was nice, precise and really very helpful

    Reply
  12. felix
    16th August 2009

    very simple and explanetry

    Reply
  13. fisayo
    16th August 2009

    This is a good work. I am writing my dissertation on e-commerce. This has really helped. Thnx

    Reply
  14. x
    16th August 2009

    nice….

    Reply

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