When the Internet became available for commercial use in 1991, e-business and e-commerce companies started to pop up. Thirty years later, global retail e-commerce sales reached 4.891 trillion US dollars. In 2021, 2.14 billion people worldwide will buy goods or order services online.
The spread of the Internet triggers the rapid growth of e-business vs. e-commerce models. Another factor is the changing buying patterns of consumers who are more likely to buy something online.
Since e-business and e-commerce are extremely powerful today, it’s important to differentiate them. Even though e-business vs. e-commerce has much in common, the differences are significant. That’s why below, we will compare and contrast e-business vs. e-commerce companies and what they do.
What is E-business?
An e-business is any company that operates online. Its website promotes products and services, uses a CRM to communicate with customers, and integrates other digital solutions to run business operations.
To better differentiate between e-business vs. e-commerce, consider the main characteristics of e-businesses.
- Online niche as a medium. The online niche is what turns an ordinary business into an e-business. All e-businesses rely on the Internet and its web resources to offer their products or services. They also use web resources to promote their brand and engage more customers who can later order online or buy the promoted products in an offline store.
- Online communication. E-businesses communicate with customers through multiple web channels. They place contact information on the website and provide support via social media profiles, emails, website charts, and other online touchpoints.
E-business Examples
A real estate agency that conducts business offline but allows customers to view and book different properties on their website is an e-business company. People can leave a request, communicate with a real estate agent, and then decide to view the booked property. Real estate agents use a CRM to view the received requests, filter them, and respond to customers. They may also use other software solutions to track free properties, demand, finances, and other metrics.
What is E-commerce?
E-commerce is a business model for selling products and services on the web. Customers can place an order, pay, and arrange the shipment through a website. Only order pickup or delivery happens offline. When e-commerce businesses offer services, they are also highly digitized.
E-commerce businesses fall into several types: B2B, B2C, C2C, and C2B. Whereas B2B e-commerce companies conduct online transactions and communication between two businesses, B2C e-commerce connects businesses to the final customer. C2C ensures digital transactions between two customers (e.g., eBay web auction marketplace). Consumer to Business (C2B) enables consumers to create products that businesses may be interested in (e.g., logos).
This way, e-commerce companies share the following characteristics:
- All the processes happen online. Customers can find products, order, complete the payment, and follow the shipment through the website.
- They usually have no offline branches. Although some e-commerce companies combine online sales with offline sales, the majority don’t have brick-and-mortar stores.
- 24/7 online support. E-commerce companies enable consumers to get support at any time.
Ecommerce Business Examples
E-commerce encompasses all kinds of online stores, marketplaces, platforms, and applications. Here are the most famous of them:
eBay
An e-commerce corporation that sells electronics, cars, collectibles, health and beauty products, and other products. It offers B2C and C2C services.
Apple
It’s a B2C store of a renowned American technology company that is an official place to buy original Apple products.
Alibaba
A Chinese company unites three web stores: Taobao, Tmall, and Alibaba.com. Through its B2B platform, it directly connects suppliers and buyers worldwide.
Amazon
A digital platform enables businesses, individual sellers, and manufacturers to sell products to Amazon at a wholesale rate. Later, Amazon markets the products and offers them to buyers.
Walmart
A US multinational retail corporation that owns a chain of discount department stores, grocery stores, hypermarkets, and an online marketplace selling basic goods.
Key Differences Between E-business and E-commerce
Now, let’s discuss the main differences between e-business and e-commerce companies. E-business refers to any business activity carried out online, while e-commerce is mainly about providing services and products through web marketplaces.
ModelAmbivertExtroverted
| E-Business | E-Commerce | |
| Definition | Running business operations using the Internet | Trading of products and services online |
| Level | Broader concept | Subset |
| Structure | More complex and extensive | Simpler |
| Software required | Website, CRM, ERP, etc. | Website, application |
| Offline/Online balance | May involve both offline and online interactions with customers | Focus on online customer interactions |
| Internet use | Internet, intranet, and extranet | Only Internet |
| ICT use | Uses information and communication technology to make its business processes faster and more efficient | Uses information and communication technology to enable business relationships between consumers and suppliers |
The Advantages of E-business vs. E-commerce
These two models prevail in the modern business world. Web resources allow companies to reach a broader target audience and make their services more convenient. E-business and e-commerce also have some other valid advantages for each model.
Advantages of E-business
First, e-business allows companies to interact with potential and existing customers through multiple channels. The focus shifts from offline touchpoints to more effective online interactions. Companies become less dependent on a physical location and can offer their products and solutions worldwide.
Another tangible advantage of transforming a company to an e-business is the high level of business process automation. To operate online, a business needs to adopt multiple software solutions, including a website, CRM, and ERP. Despite being expensive to implement, these solutions quickly pay off and make the company more profitable.
Advantages of E-commerce
E-commerce is one of the cheapest methods to start a business. Build a basic website with a builder and start selling products or services. An offline store would require more investment and effort to open. However, you remain more flexible and agile since you conduct your business digitally.
In e-commerce, you can better tailor the offer to your target audience, simplifying customer engagement and retention. In addition, big data collected about buyers on the launched web store allows for learning their preferences and purchasing habits.
FAQ: E-Business and E-Commerce Differenct
What is E-Commerce?
Electronic commerce, or just e-commerce, is the term for online product and service transactions. Its main emphasis is on internet platform-based interactions between customers and enterprises.
What is E-Business?
E-business, or electronic business, includes integrated procedures a corporation uses to perform business online in addition to online transactions. This covers inside operations like risk management, customer relationship management, and inventory control.
Which distinctions exist between e-business and e-commerce?
Although E-Commerce is restricted to the online purchase and sale of products and services, E-corporate entails a more extensive digital integration of all corporate activities. One component of E-Business is E-Commerce.
Can a company participate in e-business without actually doing it?
Indeed, a company can do e-business without explicitly selling products or services online by using digital tools to manage partnerships or automate internal procedures.
Why is E-Commerce seen to be less complete than E-Business?
Since e-business includes backend operations like digital marketing, supply chain management, and online order processing that support e-commerce’s direct trading activities, it is seen as more extensive.
Which advantages does e-business have over conventional business?
When compared to traditional company models, e-business provides greater customer service, increased data utilization for strategic decision-making, and possibly reduced operating expenses.
Conclusion
E-commerce is a subset of e-business. E-business signifies a company that runs operations online, but e-commerce is solely associated with online stores. To make your company truly e-business, you will need to implement more profound changes.
