Difference Between E-Commerce and E-Business

In this lesson we’ll learn the Difference Between E-Commerce and E-Business. E-Commerce and E-Business are two completely different terms but they are always used interchangeably by many of us. E-Commerce is the subset of E-business. An E-Commerce can be described as the use of the Internet and the web enable commercial transactions between and among organizations and individuals. An E-business enterprise uses the Internet, intra-net, extra-net, and other network to support every step of the commercial process. This might include everything from advertising, sales, and customer support on the World Wide Web, to Internet security and payment mechanisms that ensure completion of delivery and payment process.

Difference Between E-Commerce & E-Business

Difference Between E-Commerce and E-Business:

E-Commerce can be defined as: the use of the Internet and the Web to conduct business transaction.  E- Commerce is also known as (EC or Electronic Commerce), and it is a transaction conducted between business partners. EC is a narrow term; is also the process of buying and selling or exchange of products, service and information over variety of computer network

E-Business is also known as (EB), and it is a broader term. EB means buying and selling, servicing customer, and collaborating business partner and conducting electronic transactions with an organization. We can also say that E-business is all about cycle time, speed, globalization, enhance productivity, reaching new customer and sharing knowledge across institution for competitive advantage. Here we use the term electronic commerce in its broadest scope, which is basically equivalent to e-business.

Types of E-Commerce

There are three main types of E-Commerce;

  • B2B
  • B2C
  • C2C
  1. Business –to–Business E-Commerce (B2B)

It is the type of e commerce where both the buyers and the seller are organizations using computer networks. For example AB Book shop wants to purchase certain computer books from XY publication on Internet It is called (B2B Commerce).

  1. Business–to–Consumer E-Commerce (B2C)

It is the type E-Commerce where business is selling on line to an individual consumer. These are retailing transaction with individual shopper using computer networks. In this types of the E-Commerce business can occur between a business and consumer. For example Commerce College wants to purchase some computer books from AB bookshop. Through Internet then it is called business to consumer E-commerce.

  1. Consumer–to–Consumer E-Commerce (C2C)

It is the type E-commerce where consumer sells directly to consumer. When a business takes place between two consumers on line then it is called as the consumer-to-consumer E-Commerce. Examples are individual selling in classified ads and selling residential property, cars and so on. Several auction sites allow individual to put item up for auction. Many individual are using internet and other organization network to advertise item for sale or service.

Business Model

A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction is part of business strategy.

E-Business Model

The E-Business model, like any business model, describes how a company functions; how it provides a product or service, how it generates revenue, and how it will create and adapt to new markets and technologies. It has four traditional components as shown in the figure, The E-Business Model. These are the E-Business concepts, value proposition, sources of revenue, and the required activities, resources, and capabilities. In a successful business, all of its business model components work together in a cooperative and supportive fashion.

  1. Business –to–Business

A website following the B2B business model sells its products to an intermediate buyer who then sells the product to the final customer. As an example, a wholesaler places an order from a company’s website and after receiving the consignment, sells the end product to the final customer who comes to buy the product at one of its retail outlets.

  1. Business–to–Consumer

A website following the B2C business model sells its products directly to a customer. A customer can view the products shown on the website. The customer can choose a product and order the same the website will then send a notification to the business organization via email and the organization will dispatch the product/goods to the customer.

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