Difference between eBusiness and eCommerce – Complete Guide

With many e-businesses now on the scene and a growing number of e-commerce websites becoming successful, a question often asked is what the difference is between e-business and e-commerce. In this article, we analyze the two to find an answer.

What is an e-Business? 

Online Business also known as e-business is any kind of business that includes sharing information across the world wide web.

E-business may be understood in a better way as an online system that keeps its vigil electronically on inventory management.

E-business is also considered as a content management system (CMS) that drives the workflow between the content developer, editor, manager, and publisher.

Components of an e-Business

E-businesses have various components comprising of Business Intelligence, CRM, ERP, Supply Chain Management, Collaboration, online activities, and electronic transactions inside the company. You must have an eCommerce website to handle online sales. Besides these, there are some other key aspects that further clarify what exactly an e-business is as listed below:

E-Procurement

E-Procurement is the system adopted by online firms to reduce the costs and efforts by sourcing products or services electronically.

Online Stores

Online Store is a website or application for products or services like online shopping stores. It aims to save valuable time and money.

Online Marketplace

Electronic commerce connects the buyers with the suppliers of a product and service online. An online marketplace operator only gives the inventory of other people and allows the transaction facility.

Online Communities

Online Communities or Web Communities are groups, comprising people having the same interests to communicate online with each other. Here transaction decisions are made between the individual and the organization.

Online Companies

Online companies are electronic business cooperation, connecting individual companies to form virtual businesses with a common transaction offer.

E-business Concept

The E-business concept depicts how a business will earn revenue. Besides this, corporate strategies are also embedded in the e-business concept and explain how to implement and modernize the business concept to raise business performance. Business concepts and market research play a vital role to understand the market. After the market research is done, then comes the pricing.

Value Proposition

Value Proposition is the value given by the e-business to its customers. It comprises of:

• Reduced price
• Improved services with user-friendliness
• Delivery with pace and improved assistance
• Products or services with greater efficiency by increasing income
• Easy to reach for available inventory with different choices for the buyers

Revenue Sources

Revenue sources can be:

• Advertisement
• Agent
• Licensing
• Sales commissions
• Sponsorship
• Usage Fees

Required Activities, Resources, and Capabilities of an e-Business

Activities

Activities are the group of processes needed to implement the e-business concept. The output of each activity can be identified by the operational business model.

Resources

Resources are needed to perform activities effectively.  Resources can be human, tangible, intangible, and supportive.

Capabilities

Like for any other business, capabilities are also required for e-business. Online presence and broader audiences turn the first wages into the highest cost for the e-business with no all-time presence of the capable worker.

The e-Business Supply Chain

With a supply chain serving both B2B and B2C, of which B2C comprises of three classes which are:

• To deliver unlimited products under a single business brand
• Make a new market channel
• To eliminate the middlemen

What is e-Commerce?  

Online commerce or electronic commerce (e-commerce) involves the exchange of products and services online between businesses, groups, and individuals through business processes of online stores or other internet-based companies.

E-commerce generates revenue for businesses using the internet as their market, which is mainly e-businesses. Every online business uses computers and technology, inventory for online sales, and needs e-commerce for its business.

Difference Between eBusiness and eCommerce

An e-Business is not limited to just buying and selling products or services. On the other hand, E-Commerce deals with buying and selling products or services online. Therefore, e-commerce helps any kind of business transaction related to money and allied activities and can be considered an important part of any e-business.

An e-Business uses the internet, intranet, and extranet to connect with parties, whereas e-commerce relies solely on the internet to be used by online customers.

So, an electronic business does not only deal with online transactions of selling and buying of a product and/or service like e-commerce, but also enables business processes such as logistics, manufacturing, marketing, and customer service through internal or external networks.

Final Verdict

It is very clear that an e-Business has many more dimensions than e-commerce and is much more complex. Whether you are considering moving into e-commerce or an e-business you should carefully analyze what it is you want to do and what is required for it. It appears that e-commerce is a much simpler starting point than an online business, but you can learn much more about what it takes in the extensive digital entrepreneurship guide and the start an online business guide to determine what is the best option for you.