Understanding E-business and E-commerce and their differences
We all know how the Covid-19 pandemic changed the world. The world of business turned topsy-turvy. When the pandemic came all of a sudden, businesses were in shock with no immediate solution foreseen. But, soon, the adoption of innovative practices and a few adjustments led to a ‘new normal’.
This new normal is Digital. Online. E-business. E-commerce.
E-businesses were in existence from the time internet came into being. But, the way the pandemic led to its growth, that’s incomparable. It is not only the big companies but also the small and medium-sized entities that caught up with the trend.
Also, lockdowns and social distancing resulted in the purchase of goods and services online. Shoppers shifted from visiting supermarkets or malls to scrolling online portals to buy any type of product. And, so the e-commerce business is at an all-time high.
Now, you might be confused with the use of both the terms ‘e-business’ and ‘e-commerce’. Although these terms sound similar and people consider them the same, they are different in meaning. There are some similarities between the two, but many differences.
Let us understand what each is and try to identify the key differences between the two:
What it is?
E-commerce means conducting commercial activities online. It means buying and selling products and services on the internet. Amazon, Flipkart, eBay, Walmart, Alibaba, etc. are prime examples of e-commerce.
E-business means conducting business operations over the web. It includes all types of business activities that you can conduct online through an online presence. Examples include companies that carry out trade, commerce, and industry operations using IT and telecommunication.
What does it include?
E-commerce activities include purchasing and selling items online, online payments, online ticketing, online customer support, online banking, and many more.
E-business activities include supply chain management, procurement of raw materials, online training of customers, monetary transactions, buying and selling items, online marketing, and many more.
What is the approach used?
E-commerce business takes an external approach since it includes customers, suppliers, etc.
E-business activities take an ambivert approach because it includes managing internal as well as external processes to conduct the business successfully.
What is the limit of transactions?
Transactions are limited in e-commerce. And, it is a subset of e-business.
In e-business, there is no limitation on the number of transactions. It is a superset of e-commerce.
What does each require?
You need only the internet for e-commerce transactions. And, you can do e-commerce activities through a website.
To conduct e-business operations, you need to have the internet, extranet, and intranet. Unlike e-commerce, you need to have multiple websites, Enterprise Resource Planning systems, Customer Relationship Management software, sales department, business intelligence, and many such software and systems.
What are the types of each?
E-commerce has four types:
Transactions happen from one business to another business. Example: Alibaba
Transactions happen from a business to a customer. Example: Dell
Transactions happen from one customer to another customer. Example: OLX
Transactions happen from a customer to a business. Example: online influencer
Transactions happen from a customer to Administration. Example: payment of taxes, public health services, etc.
Transactions happen from a business to Administration.
E-business is of two types:
It is self-explanatory. It means the business operations are conducted both offline and online, which means physical store and online website. Example: Westside
Such a business exists only in electronic format. Example: Hotels.com
What is the role of money?
Since e-commerce involves only the trading of items, it includes only monetary transactions.
On the contrary, e-business is all about running business operations, and so there is much more than just monetary transactions in e-business.
Both are important for any country and economy. But, it is important to understand their differences for ensuring the selection of the right business model and hassle-free operations. If you intend to engage in e-commerce activities or would like to start an e-business, you must be aware of these concepts to move ahead. Ask yourself these questions to know the role of technology in your business operations.
For any help or guidance, you can always ask the experts at Digiwagon Technologies. We can help you develop e-business and help you run it smoothly. We can also develop your e-commerce website to give your online sales a push.
Digiwagon is a leading provider of digital solutions to clients in different industries in India. We use digital technologies to solve your organizational problems, make your operations efficient, and improve your reach to your customers. We have clients in industries such as real estate, education, healthcare, automotive, banking, and many more.
Our expertise lies in scaling your business to new heights through social media marketing, web development and designing, search engine optimization, and many other strategies. Whether it is website development, cloud services, or mobile app development, we have made our clients happy in every service. Our experts focus on adding value to your business by using the latest technologies and aligning them with your goals.