Difference between E Commerce and E Business

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Difference Between E Commerce and E Business

The world of information and communication technology is evolving at a higher pace. From schools to the banking sector to online shopping, the internet has become a major necessity of the day. Emerging digital technologies have transformed the way we learn and communicate as well as carry out commercial and industrial activities. Moreover, the internet has brought efficiency and a faster pace in our lives. Especially in the arena of business, anyone can now open up their own online business with fewer costs and reach out to a global audience as well. Through the advent of E-commerce, the commercial sector arena is booming with small businesses and online businesses. In this blog, we will help you understand the difference between E-commerce & E-Business. Let’s get started!

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What is E-commerce?

An abbreviated term for Electronic Commerce, E-Commerce mainly corresponds to commercial activities carried out through electronic mode and digital platforms. It is an expansive field and encompasses the exchange of goods and services with the help of online platforms. Since the physical interaction is minimal, the buying and selling take place online. Amazon is the perfect example of E-commerce activities where buying and selling take place throughout the globe. Apart from online shopping, social networking is a premier example of e-commerce. Moreover, E-commerce is an umbrella term which includes different commercial transactions while e-business only corresponds to business activities.

Types

B2B: Referred to as Business to Business, the B2B is a process where the exchange of goods and service takes place between business to business modes. Oracle, Alibaba, Qualcomm are examples of B2B business.

B2C: This type takes place directly between a business and customers. Intel, Dell are the examples of B2B model

C2C: It involves commercial transactions between an e-commerce enterprise and its customer. It is purely a commercial transaction. OLX, Quickr are examples of C2C transactions.

C2B: In this type for online commerce platforms, a customer makes their products or services available for businesses to buy. For instance, customer reviews, focus groups, etc. can be the perfect examples for C2B model.

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What is E-business?

More of a general branch of e-commerce, E-business refers to carrying out business activities through digital platforms. This is one of the emerging modes of doing business which is gaining momentum and popularity in the digital age. Further, Intranet, internet and extranet networks are used in this e-business.

Types

  • Pure-Play: It refers to those e-businesses that have a complete electronic and digital existence. Hotels.com, Amazon are examples of Pureplay. 
  • Brick and Click: This type of e-businesses include encompass an electronic as well as physical businesses. Chain of stores that conduct their business online and offline are the best examples for this e-business model. 

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Difference Between E-Commerce & E-Business

Now that you are familiarized with their basic definitions and types, let’s move ahead with exploring the difference between E-Commerce and E-Business. 

Types of Activities

E-Commerce mainly focuses on the exchange of goods and services through online platforms while E-Business refers to any business activity carried out using online platforms. While the use of digital platforms is the common base for these two, the major difference between E Commerce and E Business is that the former essentially concentrates on commercial transactions while the latter corresponds to any business activity incorporating the use of online platforms thus facilitating a complete online presence of a business.

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Approach

E-commerce incorporates an extroverted approach that comprises suppliers, distributors, retailers and customers while an online business takes an ambivert approach by including external as well as internal processes for operating its activities through online platforms. 

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Structure

The structure of an E-Commerce enterprise is more extensive than E-Business since the former essentially requires an integrative website to sell their goods and services. On the other hand, an online business not only needs an online website but also has to set up customer relationship management, enterprise resource planning, sales and marketing departments amongst others.

Use of the Internet

Another chief point of difference between E Commerce and E Business is that an e-commerce website only utilises the internet for its transcations while online businesses make use of the internet, intranet as well as extranet to establish a stronger connection with their parties.

Business Models

While in simple terms, both e-commerce and e-business formulate an online and digital approach, they also differ as per their approach in terms of their business models if we go into their specifications. To establish an e-commerce website, one will need a new or additional business model to carry out online sales and services. Whereas an e-business can potentially reinvent a traditionally run offline business into an online one without relatively working on a new business model.

Take a look at the table below which summarizes the key points of difference between E Commerce and E Business:

Criteria E-commerce  E-business 
Meaning It is a trading activity taking place through electronic devices.  When we run the business through the internet is known as E-business. 
Transactions It carries out commercial transactions.  It carries out business transactions
Approach It has an extroverted approach . It has an ambivert approach.
Key Operational Component It requires a website to run.  It requires a website, CRM, ERP to run. 
Use of the Internet Mainly Internet is used for e commercing activities  Here intranet, extranet as well as the internet is used.
Monetary Transactions Money related transactions Allied, as well as monetary activities. 

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Here is a list of popular courses in these two domains for those wanting to explore these two emerging fields:

E-commerce Courses  E-Business Courses 
Bachelor of Business Administration – Information Systems and E-Commerce BSc (Hons) Business Management (e-Business) with a Foundation Year
BSc (E-Commerce in Retailing) Level 8 BSc (Hons) Business Management (e-Business)
Certificate in Computer Information Systems – E-Commerce BSc (Hons) Business Management (e-Business) With a Year In Industry
Master of Science in E-Commerce Technology E-Business and Innovation MSc
Master of Information Technology – e-Commerce Systems MSc e-Business Management
Master of Science in E-Commerce E-Business (E-Marketing) MSc

For pursuing the aforementioned courses, here are the major universities you can consider:

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Hopefully, this blog helped you understand the integral points of difference between E Commerce and E Business. Planning to study a course in E-Commerce and E-Business? Take the assistance of our experts at Leverage Edu by signing up for an e-meeting with us and we will guide you in selecting the right programme and university that aligns with your interests and career goals!

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