Everybody likes me who uses the internet to hear two familiar words: eCommerce and eBusiness. These are the most familiar words among young to old. But what are these?
Is there any relation between them? What is the difference between eCommerce and ebusiness? Most common questions. We often mistake to clarify their identity and purposes.
Though, they are almost the same in manner. But, there are some differences between these two words. In this lesson, we will try to find out what eCommerce and eBusiness are? Also, what is the difference between eCommerce and ebusiness?
Let’s move on our today’s topics.
Table of Contents
What is eCommerce?
In short, eCommerce is like selling any product or service using the internet. However, it is trendy among of all ages people.
Why?
Due to lots of working pressure, lack of time, and making life easier, today people prefer to buy many things online. eCommerce platforms allow both consumer and seller to buy and sell goods & services.
Selling terms may involve in multi ways. For example, they can sell products taking advance payment or cash on delivery. It doesn’t matter. From taking an order to deliver the product to the customer, every process includes eCommerce terms.
An eCommerce business can be operated on an online and offline basis. For example, Amazon the largest eCommerce platform in the global have their physical store also. Therefore, people can easily collect their ordered products from the store.
So, we can say buying products or services and making payments for this order around the web are eCommerce businesses.
Types of eCommerce
eCommerce is the most prominent business idea around the world. Anyone from any place worldwide can quickly start this business and make sales from the first day of business. Due to its nature, we can see four types of eCommerce globally.
B2B :
when an eCommerce sells products or services for another eCommerce or businesses. It is known as business to business. In these cases, business owners buy or sell their services or goods from another company.
Why they purchase from other businesses? Well, in maximum cases, companies prefer to buy goods or services to reduce their production cost.
Almost every business depends on other companies by hook or crook. Businesses work like a chain.
B2C:
In these cases, consumers are buyers of the goods or services. It means business to consumer or retail sales from business to individual customers. For example, a unique customer purchases the latest iPhone from an online store for personal use.
C2C :
it refers the consumer to consumer buying and selling process. A person can sell anything online using a third-party eCommerce platform like Amazon, OLX, and more.
They don’t need to set up a website and other costs for maintaining the business. It also becomes popular day by day.
C2B:
an individual person when sells goods or services to other businesses, it is called C2B eCommerce. Any skilled persons can sell their skills to other companies.
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What is eBusiness?
eBusiness is commonly known as the online business also. Whenever online business comes to mind, we first think about eCommerce. Yes, eCommerce is involved in eBusiness also.
But, it doesn’t only deal with eCommerce. However, the area of ebusiness is wider than e-commerce. In short, any business or business-related transaction (includes information also) sharing with the help of internet is ebusiness.
What is a business-related transaction?
Okay, in eCommerce, transactions are limited to buying and selling. But, after receiving an order, the seller needs to process this order, manage the supply chain, logistics, customer service, manufacturing or sourcing the product, and finally deliver this product.
All these activities are unknown to the customer. They only receive the product which has been ordered.
But managing order ideally, the seller needs to do these activities. These are the part of ebusiness. In simple, ebusiness model helps the business to grow more doing business process activities.
Types of eBusiness
Ebusiness includes all business operations, including selling goods or services, not confined to eCommerce. There are two types ebusiness.
1. Pureplay:
It is a business model. In this model, all efforts and resources are invested in one product. Not all operations need to be maintained online
For example, Hubspot, a CRM software. Today, we see a new business model print on demand. It is an excellent example of ebusiness.
2. Bricks and Clicks- another business model. In this model, the business generates sales both online and offline. For example, a store that has both an offline store and an online website.
Customers can easily place an order on their website. Also, if they wish, they can collect their product from the physical store.
Both of these models include eCommerce, but ebusiness is more than eCommerce. In below, we discuss who the participants of ebusiness are?
Participants of eBusiness
The participants of ebusiness model are very more extensive. It can be between individual participants, businesses, public administrations, consumers, or other organizations like NGOs. If we want to divide it, we find three significant participants in ebusiness.
Business (B)
Consumer ©
Administration (A)
B2B and B2C business relations are common in the e-Commerce sector, and A2B & A2C business relations are common in the e-government sector.
What is the difference between ecommerce and eBusiness?
We previously discussed the definition of eCommerce and ebusiness. From this definition, we see there is a major difference between e-commerce and ebusiness.
First, however, we will try to find out more issues to understand the difference between them quickly.
Let’s try to go deep more.
1. Ecommerce is trading merchandise like selling goods and services using the internet. But, eBusiness is running an online business. Though It may include trading merchandise, it is not limited to the point.
2. Ecommerce is limited to monetary transactions, but ebusiness is not limited to that point.
3. Ecommerce mainly focus on a commercial transaction, but ebusiness focus on business transactions.
For running an eCommerce business, you need just a website. In cases of ebusiness, you may need a website, CRM, ERP, and more business processing tools.
Key differences between eCommerce and eBusiness
I hope you’re now clear about eCommerce and ebusiness. For opening minds, we try to go long deep about both of these business models. Now, below we will discuss some key differences between eCommerce and ebusiness.
So, what is the key difference between them? First of all, we again remember you of their definitions; it will give you a clear idea.
eCommerce is nothing but buying and selling goods or services. But, ebsuiness is the online presence of any business. It involves all business activities using the internet.
eCommerce is part of ebusiness. In short, without ebusiness you can’t run a successful eCommerce business. But, without ecommerce section, anyone can quickly run a successful eBusiness.
For example; Hubspot, they are a customer relationship management (CRM) software, the seller. Their main goal to help other businesses to manage their customer relationship more smoothly.
Without selling any goods or services, they easily build their online business. And, eCommerce takes help from them for managing their customer relationship.
Ecommerce always focus on transaction related to money. Ebusiness also focuses on money with all ailed activities.
Ecommerce always have an external approach like selling goods, customer service, deliver products or service.
But, eBusiness have both external and internal approach. These activities also focus on supply chain management, customer relationship management, documents management, bookkeeping management etc.
With a website, you can run an eCommerce business from today. But, for managing eCommerce, you must need ebusiness activities like customer relationship management software etc.
Both of this business model depends on the internet. Ecommerce use internet to connect the whole world. But, ebusiness use the internet for connecting third-parties, like their supplier.
Conclusion:
Now, you can see eCommerce and ebusiness are not competitors. Rather than, we can say eCommerce is a significant part of eBusiness.
Without ebusiness, it is impossible to run a successful eCommerce business. Ebusiness is just the online presence of all business processing activities.
So, do you need both for running eCommerce?
Well, the answer may be a little bit tricky. But, at the starting point, when your capital is limited, and customers are very few, you may run your eCommerce store efficiently without taking the help of business.
You can keep a record by yourself and source products offline from your local market. But, when your business will grow up, you must need this.
Because it will be tough for you to maintain it, but you can do it using technology.
Big eCommerce platforms like Amazon, Target, Alibaba dominates eCommerce markets over the decades. These companies are moving them all business activities online. eBusiness makes their business more smooth and comfortable
But, don’t overthink about it. want to run an eCommerce store? you can do it just by publishing a website.
In this lesson, we try to show what is the difference between eCommerce and ebusinesss? Clearing business nature, model, and specification will help you to understand both of these.
I hope you’re now clear about this. If you have any queries, let us know below the comment.
Thanks.
