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What Is the Difference Between E-Commerce and E-Business?

a computer generated picture of people shopping online

a computer generated picture of people shopping online

Due to the rapid growth and recent developments in the tech industry, people are likely to encounter new terms or even confuse their differences. One of the most commonly confused critical terms in the tech business is how e-commerce is different from e-business.

To clearly define them, we have provided a brief description of each one and how they differ for you to understand how unique these two concepts are to each other. 

After reading this article, you can easily predict the distinction between them and accurately label whether a business belongs to e-commerce or e-business.

What is E-Business?

The best way to understand a concept is by defining them most straightforwardly. Understanding E-Business is as simple as any business that includes any use of electronics in their business activity. This means even if they primarily operate physically through a store, having a website would automatically make them an E-Business.

Using different types of online work in conducting business practices is a characteristic that every E-Business shares. 

E-Business is also mainly classified into two categories which are “Pure Play” and “Click and Mortar.” Pure Play is a form of E-Business that uses the Internet solely for business operations. On the other hand, Click and Mortar integrate using the Internet while still operating physically.

What is E-Commerce?

E-Commerce is a form of business that includes buying, selling, and shipment of goods or services through the Internet. This is one of the most popular models as they are convenient for both the customers and business owners. 

However, e-commerce stores don’t only include the B2C (Business to Consumer) model; it also encompasses B2B (Business to Business), C2C (Consumer To Consumer), and C2B (Consumer To Business).

Key Differences

Understanding both E-Commerce and E-Business in a sole lens helps you define them more profoundly and avoid confusing them from one another. This allows you to interpret these vague definitions more practically and efficiently categorize different business organizations and their respective classification.

Now that we’ve both defined each term separately, let’s now discuss how they could be different by understanding some key factoring distinctions.

Understanding the descriptions above, we can now conclude that E-Commerce is a form of E-Business. This means all E-Commerce is part of E-Business, but not all E-Business is E-Commerce.

E-Business is taking advantage of the Internet and using Information Technology to increase the speed and efficiency of business processes. On the other hand, E-Commerce solely relies on the Internet to operate their business.

E-Commerce requires and needs a website to sell products. In comparison, E-Business doesn’t necessarily need an online presence to sell its products.

E-Commerce only uses the Internet for business activities, while E-Business could be utilizing both the Internet, Intranet, and Extranet.

Benefits of Using E-Commerce & E-Business Models

The world of business, marketing, and the whole economic system has been changing dramatically in front of our very own eyes as the Internet arises.

It has come from being a convenient utility for business purposes to technically being a primary cause of driving business growth.

Let’s tackle some of the most significant benefits of using E-Commerce & E-Business models today.

Reduce Business Costs

Integrating electronic processes into your business activities is that it strips off unnecessary menial workloads, which then lets you invest your money for more effective business improvements.

More chances for Scalability

The ability to scale as vast as even global is a notion that none of us could have imagined if we were somehow born in the past, where only physical stores could operate a business. The Internet has made it possible for companies to work globally, which means more turnover and endless opportunities.

Business Operations even when you’re asleep.

Yes, operating 24 hours is a superpower of every e-commerce and e-business today. This adds convenience for consumers as they could order or communicate with your business at any hour of the day, while at the same time convenient for firms for not having time restrictions for business operations.

Leverage Data for business improvements

Data is a strong indication for trends, effectiveness and provides overall business parameters that can gradually improve business operations. Electronics have come a long way, and many business tools have been developed to conduct business activities as smoothly and as efficiently as possible.

No more location restriction

A person from Canada could now operate and form their own business in the US via E-Commerce or E-Business. This is an example of how powerful the Internet could be and its unlimited business opportunities for everyone. 

Understanding how to take advantage of them allows you to stay afloat or even thrive in this ever-changing world that we are in.

 

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    What Is the Difference Between E-Commerce and E-Business?