Category: E-Commerce >> Online Business

Difference between e-business and e-commerce


The business community has realized that in order to maintain the edge in competition, they must establish themselves as an e-business. The question that perplexes one is what the Difference between e business and e commerce is. There are three possibilities that one has to decide what s/he is running. The three possible categories that you might find yourself in are: e-commerce sites, e-business or just a plain simple business.


In this article, we will help you understand the difference between an e business and an e-commerce. A plain simple business is pretty simple. A plain and simple business is one that does not participate in online trading. This business is the conventional way that business of done.

E-commerce or Electronic Commerce encompasses those businesses offering products or services to either consumers or other businesses over the internet.


E-commerce can be broken up into two main categories:


  • Online Purchasing: This business presents the customer with those technologies that make it easier for them to find data and buy commodities. The businesses encompassed in this category serve the customer by giving them the option of order placement, purchase order submission or requisition of quotes.
  • Online Shopping: This involves businesses giving information to customers so that they can make a decision and buy a certain commodity from you.
To explain these two concepts lets say you go to XYZ.com and you are reviewing ABC product. When you are doing this, you are participating in Online Shopping. You then decide whether the commodity ABC is the right choice, you then add it to the shopping cart. After you have chosen whatever products you want, you then click the purchase button. As soon as you click the purchase button, you then participate in an online Purchase. This process involves all those secured pages that ask you for details such as credit card information, shipping details and other particulars.

E-business or Electronic Business on the other hand, are those businesses that run the traditional way but also cater to the needs of online requests. An e-business status is received when you can handle the calls, mail orders and the online activities.

Having said this, you will find that many sites although are related to e-commerce but are not e-businesses. E-commerce website only caters to selling of a commodity. Whereas an e-business has the companies activities amalgamated with the website. This means the marketing, accounting system, manufacturing, operations and other functions of the business is in contrast with the website activities.