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Difference between E-Commerce and E-Business

E-Commerce Vs E-Business

While most believe that E-Commerce and E-Business can be used interchangeably, it is not so. While E-Commerce may refer to conducting online transactions, E-Business encompasses all the business activities and services conducted using the web. Here, in this article, we have attempted to explain the definitions and compare both these terms to understand their differences.

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The terms discussed in this article are:

  • E-Commerce
  • E-Business

What is E-Commerce?

E-Commerce is about conducting commercial transactions via the web or getting involved in selling and buying items over the internet. It also covers monetary transactions. Some other online e-commerce activities include:

  • Ticketing over internet
  • Paying different taxes
  • Online payments
  • Products purchased or sold online
  • Online Accounting Software
  • Online Customer Support

Meanwhile, also find examples of E-Commerce sites. They include Flipkart, Paytm Mall, Amazon, Myntra and more.

What is E-Business?

E-Business encompasses executing all types of business transactions and services via the web. This includes procuring raw materials, online education, commercial transactions, monetary transactions on the internet and more. This indicates an online presence of all types of businesses and services.

Examples are E-Commerce companies and their additional internal business activities such as classifieds, auction sites, software or hardware developer sites, etc. The E-Business online activities, in the meantime, include:

  • Setting up an online store
  • Supply chain management
  • Online commercial transactions (buying and selling products)
  • Customer Education
  • Monetary Business Transactions
  • E-Mail Marketing

Difference between E-Commerce and E-Business

E-Commerce E-Business
Carrying out commercial transactions online Conducts all kinds of business activities and services over the internet
Buying/ selling, monetary transactions online Online presence of the business
A sub-set of E-Business, it is also a narrow concept A super-set of E-Commerce. Business transactions are supported in E-Business
Limited transactions Transactions are not limited
Involves use of only one website Multiple websites and CRMs, ERPs that connect different business processes are used
Mandatory use of internet Internet, Intranet or Extranet are used
It is more relevant in B2C, Business to customer context This is more appropriate to B2B or Business to Business context
Also cover external or outward business processes Covers internal as well as external business activities or processes

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