What is the Difference Between eCommerce and eBusiness

What is the Difference Between eCommerce and eBusiness

People often think the terms eCommerce and eBusiness are one and the same. This is probably because they both include the process of conducting business online or electronically i.e. over the internet. Some people also consider eCommerce to be a subcategory of eBusiness.
This is true in some ways as the biggest different between the two terminologies is that eCommerce has a narrower scope. eBusiness is about all the business processes directed online while eCommerce is only related to online buying and selling.

What Is an eBusiness?

A few examples would help further elaborate on the concept of eBusiness. Email marketing is a type of eBusiness activity which a business uses to create awareness about their products and store with existing and future customers. Online systems for tracking inventory and send alerts to the specific levels is also eBusiness since inventory management is a process related to the business and facilitating that process electronically makes it eBusiness.

Content management systems are also eBusiness as they manage the flow of work between the developers, editors, managers and publishers. The entire business operations rely on the electronic system and without it companies would have to resort to physically transporting the paper files. Online programs to allow employees to post their work online are also part of eBusiness.

In short as long as the process is related to the smooth running of the business and is conducted via electronic networks it is called an eBusiness process.

Then What Is eCommerce?

eCommerce has a clear-cut definition unlike eBusiness. It involves the placing of orders and making of payments online. There is business to consumer eCommerce where the website sells goods on one end and the buyer receives those goods at the other end. one of the best ecommerce platform is Shopify, they offer a large variety of services that allow you to grow your online business in many ways!

Differences Between eCommerce and eBusiness

The daily routine activities of a business conducted through electronic medium are eBusiness while the commercial transactions over an electronic network are known as eCommerce.

eBusiness is a broader term which involves the business organization’s use of electronic medium to perform specialized tasks and manage overall activities of the business. Information and the computing technologies are employed in boosting the business and optimizing operations. It includes any and all processes a business organization may conduct over the electronic and computer networks.

eBusiness also manages the recruitment, training and sharing of internal information with employees to improve business processes. While in eCommerce the computer technology and information is used to facilitate inter-business an intra-business dealings and transactions between a business and its consumers.

Businesses that are completely operated through electronic medium are referred to as an eBusiness and there is no physical presence of the company in the marker. When the business has a physical office and also conducts business transactions over the internet along with their physical presence, the company is then referred to as an eCommerce business.

Amazon and eBay are two examples of eBusiness which are the biggest online stores in the world. However, a store which had a physical presence at first such as Target and later created a website for selling can be referred to as eCommerce.

eBusiness and eCommerce are both related to business processes and make the use of technology with their infrastructure of databases, security tools, application servers, legacy systems and systems management.

eBusiness includes eCommerce as well as many other internal processes such as inventory management, product development, production, finance, risk management, human resources and knowledge management. eBusiness strategies are more complex and only focus on the internal processes within a business. They are created to save costs and improve the efficiency and productivity of a business.

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