E-commerce vs. E-business: Differentiating Business Models

30 November 2023 - E-Commerce

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E-commerce vs. E-business: Differentiating Business Models

E-commerce and E-business are two terms that are often used interchangeably, but they have different meanings. Understanding the difference between these two terms is crucial for businesses looking to establish a strong online presence¹ ² ³ ⁴.

E-commerce

E-commerce refers to the performing online commercial activities, transactions over the internet¹. It includes activities like buying and selling products, making monetary transactions, etc., over the internet¹. Examples of E-commerce are online retailers like Amazon, Flipkart, Myntra, Paytm mall, seller of digital goods like ebooks, online service, etc¹.

E-business

On the other hand, E-business refers to performing all types of business activities through the internet¹. It includes activities like procurement of raw materials/goods, customer education, supply activities buying and selling products, making monetary transactions, etc., over the internet¹. Examples of E-business are e-commerce companies and their various internal business activities, auction site, classified site, software and hardware developer site, etc¹.

Key Differences

E-commerce is a narrow concept and it is considered as a subset of E-business¹. While E-commerce operates only on the internet, E-businesses often use an intranet and extranet in addition to the internet⁴. E-commerce is more appropriate in Business to Customer (B2C) context, while E-business is more appropriate in Business to Business (B2B) context¹.

Relevant SaaS Products

To effectively leverage E-commerce and E-business, businesses can use various SaaS (Software as a Service) products. Here are some examples:

Shopify⁵: A comprehensive e-commerce platform that allows businesses to create online stores, manage products, and handle payments.
BigCommerce⁶: Offers a variety of tools for managing an online store, including inventory management, payment collection, and unlimited product options.
Magento (now Adobe Commerce)⁷: A flexible and scalable commerce platform that allows businesses to create personalized B2B and B2C experiences.
Volusion (now Shift4Shop)⁸: Provides a range of e-commerce features, including inventory management, payment processing, and a variety of product options.
3dcart (now Shift4Shop)⁹: Offers a range of features for building and managing an online store.

Conclusion

While E-commerce and E-business may seem similar, they have distinct differences that businesses need to understand. E-commerce is a subset of E-business and is mainly concerned with online commercial transactions. On the other hand, E-business encompasses all types of business activities conducted online. By leveraging SaaS products like Shopify, BigCommerce, Magento, Volusion, and 3dcart, businesses can effectively navigate the E-commerce and E-business landscape.

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