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

Do you know the difference between e-business and e-commerce? Have you been using these terms synonymously and surprise if you are really using them correctly? In order to have a better understanding of these two terms, let us define each of them separately.

E-commerce or electronic commerce covers business activities that are conducted by the Internet or other electronic systems. In e-commerce, products and sets are bought and sold over the Internet and transactions are completed automatically. E-commerce websites have the ability to accept orders online by a checkout characterize that is provided by e-commerce or shopping cart software. E-commerce is grounded in the usage of technologies such as electronic funds move, online marketing, supply chain management, data collection systems, inventory management systems, and electronic data interchange.

E-commerce software solutions uses all before mentioned technologies to create fully functional e-commerce websites. E-commerce websites are also called virtual storefronts or virtual malls, because they are known to be product catalogs. The stores selling products as opposed to sets may offer tangible products in addition as intangible ones such as digital downloads of music, software or books. To put this into simple terms, e-commerce is online trading. All business transactions are exclusively done by the Internet.

E-business or electronic business, however, is considered the integration of e-commerce activities into your company’s business flow. For example, you have a business, and you decide to start accepting purchases made online, then your company has transitioned from being a traditional business to an e-business. When the e-commerce activities become an integral part of your overall business that is when you can call your business an e-business. Businesses that integrate standard activities in their websites are called e-businesses because their website becomes a sales tool to generate already more profits.

An e-business is harder to continue because merchants have to manage both the website and its other internal business roles such as the production of goods or sets, product development, finance, human resources, etc. Most traditional businesses change to e-businesses because they can capture more customers by the World Wide Web. It also makes their company more specialized-looking and authentic because customers can easily contact them by the website or look up their company profile to learn more about the business.

The terms e-business and e-commerce are usually used interchangeably, but it should be used correctly so that people will know the true character of each. Now that you have a good idea of what differentiates the two, which direction do you want your business to move towards? Include it into your business plan so you have the right goal to aim for.

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