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What Are The Key Differences Between eCommerce and eBusiness?

By Mahmuda Akter Isha Last Updated -- Wednesday, 2021-06-16
Difference between eCommerce and eBuisness

Know the key difference between eCommerce and eBusiness? There is a little bit of confusion between eCommerce and eBusiness, and sometimes people think that eCommerce and eBusiness are synonymous, but it's not at all; rather, eCommerce and eBusiness are interchangeable. Moreover, all eCommerce business is a part of eBusiness, and it is included in the eBusiness process. So, if eBusiness is considered as a superset, then eCommerce will be the subset of eBusiness.

Now, I will try to illustrate the key differences between eCommerce and eBusiness in this article. Hence, I do not want to waste any more time, so let's turn around the nucleus of this article.        

What is eCommerce?

What is eCommerce?

eCommerce, it's a very common word in the present era, but the most precious question is how many people know the proper definition of eCommerce. Do you know? If you know, then it's okay, but if you don't, then you can check this content that will help you to explore some new branches in the field of eCommerce.

eCommerce is a term that reflects mainly electronic commerce; therefore, eCommerce refers to the process of ordering, buying, selling, dealing, and paying for any goods or services over the internet. 

In the process of eCommerce, the sellers can communicate with the buyers through the internet, and it is free from face-to-face interaction between the buyers and the sellers. As a customer or buyer, you just need to place the order, and after a certain period, you will get your product via a delivery man. 

Moreover, the eCommerce business process allows you to complete the payment process online because it can support multiple payment gateways. Also, you can complete your payment via cash in the delivery time. So, eCommerce is a more convenient business process for the sellers and the buyers as well. 

Types of eCommerce

Types of eCommerce

The world is more digitized day by day, and eCommerce is one of the significant examples of such a kind of digitalization. However, there are numerous applications of eCommerce in several fields such as:

Thus, the basic requirement for performing an eCommerce business activity is to need a complete eCommerce website. In this case, you have to know the types of eCommerce to start your desired business. So, let's see. 

1. B2B (Business-to-Business)

B2B eCommerce business is the process when the entire buying and selling process is conducted between two businesses or two companies. In this business model, the buyers may not be the end-user of these goods or services because they can resell these items. For example, Alibaba, Amazon Business, and more!      

2. B2C (Business-to-Consumer)

B2C (Business-to-Consumer) is the most common and well-known business form among the eCommerce business types. This process can allow you to conduct the buying and selling process between a business and a consumer. Thus, the buyers will be the end-user of these goods or services. For example, Amazon, Google, Facebook, Walmart, eBay, Flipkart, Daraz, and so on!         

3. C2C (Consumer-to-Consumer)

This business model allows the buying and selling process to be completed between two consumers. In the C2C business model, all electronic transactions are conducted between two consumers, and to complete these transactions, and you may need a third party that will provide the online platform to complete the transactional process. For example, Amazon, eBay, OLX, Uber, and more!    

4. C2B (Consumer-to-Business)

C2B (Consumer-to-Business) refers to the process where the electronic transaction is conducted between the consumers and business. In this business model, the consumers can sell their goods or services to a business—for example, Google Adsense, Commission Junction, Fotolia, Amazon, etc.      

5. B2A (Business-to-Administration)

B2A (Business-to-Administration) business process is conducted between business and public administrations or government agencies. This one is a large field that can allow you to deal with huge amounts of goods and services. So, this business model can allow you to create a bridge with the government by providing the services—for example, Accela, TurboTax, H&R Block, etc.     

6. C2A (Consumer-to-Administration)

The C2A business concept is similar to the concept of B2A business, but the major difference is, here the consumer can deal with the government. In this business model, the consumer can provide goods and services to the government. So, the consumer can create a direct relationship with the government through this eCommerce business type. For example, Income tax, Online appointment service, Tuition Fees, and more!

7. F-Commerce (Facebook Commerce)

F-Commerce is one of the most popular business platforms all over the world because around 53.6% of the population are connected with the social platform. This business operation, like the buying and selling processes, is conducted through Facebook. Moreover, consumers can easily interact with the F-Commerce business model as well as sellers can operate the entire business activities smoothly. So, it is an easy and comfortable business model for not only the buyers but also the consumers.    

8. M-Commerce (Mobile Commerce)

This one is another significant type of eCommerce business. When you conduct your business operation through a mobile device, then it will be counted as mobile commerce (M-Commerce). Also, if you provide any kinds of services through the mobile, this will be included in the M-Commerce. The most well-known example of the M-Commerce business is bKash (Mobile Financial Service), Apple Pay, Google Pay, Amazon mobile app, and more!    

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Ecommerce Shopping Cart Software

What is eBusiness?

What is eBusiness?

eBusiness is the vast field of modern business industries. But most of the entrepreneurs are not familiar with the eBusiness concept because they think it is very hazardous to operate. Moreover, there are huge misconceptions about the eBusiness concept. So, you need to know the exact definition of eBusiness at first. 

eBusiness means an electronic business which refers to manage the entire business operation through the internet, web, intranet, and extranet. When you conduct your overall business process over the internet, like collecting information, then communication, and finally complete transactions, then this business process is considered as eBusiness.

If you have a physical existence in your business and you operate your business activities through the internet, then it will also be encountered as eBusiness. eBusiness can allow you to maintain your business operation via the internet if you have physical existence or not.

There are lots of visual examples that will help you to realize the activities of eBusiness. For instance, this business process can allow you to collect your employee's information or to manage other activities by using HRMS software

Also, you can conduct email marketing to connect your customers through the eBusiness process as well as it can allow you to make a smooth transaction system.

So, the eBusiness concept allows you to manage the overall process of your business easily and automatically.     

5 Basic Components of eBusiness

There are mainly two types of eBusiness, but before knowing the types of eBusiness, you need to require a clear concept about the components of eBusiness. There are mainly five basic areas of eBusiness, these are: 

1. E-Procurement

This process can allow you to manage the products and services electronically that will help to reduce the cost and enhance the profitability of your business. Moreover, this process can use several types of business organizations such as B2B, B2C, and B2A.   

2. Online Stores

This one is one of the well-known areas of this field. This area can allow you to complete your selling process over the internet. So, you can conduct the buying and selling of products and services through the internet in this area, such as online shopping stores. This business process can use various e-shop, web-store, m-commerce, virtual-store, and so on.    

3. Online Marketplace

There is various online marketplace that can allow you to deal with the products and services through the internet. So, it can assist you to create a digital network all over the world. In this business process, you need to require an inventory system as well as it can ensure to complete the payment process over the internet.

4. Online Communities

There are several online communities that can communicate with each other to share any kind of knowledge and data. This business process is mainly used to make any transaction decisions between individuals and organizations. 

5. Online Companies

It is another effective area that mainly works on the concept of eBusiness. Online companies allow you to connect with individual companies to form a virtual business, and they can offer a common transaction process. 

Types of eBusiness Model

In the previous section, I have already said that the eBusiness model is mainly of two types. Here, I will explain these. 

1. Pure-Play

Pure-play is an eBusiness model that can allow to complete the entire business activities over the internet and which have only virtual existence and no physical structure; that business model is considered as pure-play. For example, Dunkin' Brands Group, Netflix, and more. 

2. Brick and Click

This one is another eBusiness model that can allow to complete the entire business operation through the internet as well as to need a physical existence. So, the brick-and-click business model can provide the facility to manage your business activities both online and offline. For example, Amazon.in, Pizza Hut, Walmart, and more.  

Comparison Chart between eCommerce & eBusiness

Comparison Chart between eCommerce & eBusiness

Now, I will provide a summarized chart that will help you to observe a clear differentiation between eCommerce and eBusiness.  So, take your eyes to the center of attention in this article. 

Aspect 

eCommerce 

eBusiness

Definition 

Buying and selling process over the internet 

Manage the entire business activities through electronically or using the internet, intranet, or so on.

Types 

There are 8 types of eCommerce business available 

This business model is mainly 2 types

Structure 

Subset 

Superset 

Business Context 

B2C 

B2B

Requires 

Website  

Website, HRM, ERP, CRM, and more

Network 

Internet 

Internet, Intranet, Extranet, and so on

Approach  

Extroverted

Ambivert approach   

Carry Out 

Commercial Transaction 

Business Transaction 

Application 

Online shopping, Online banking, Retail & Wholesale

E-Procurement, E-Communication or E-Promotion 

Monetary Transaction  

This business process is limited to the monetary transaction 

It is not only limited to the monetary transaction but also included allied activities  

Here, you can check this video that will help you to easily understand the difference between eCommerce and eBusiness.

Video Courtesy: geoflypagesitservice

Final Words

Clear to Know the Difference between eCommerce & eBusiness? Absolutely, it has been clear to you. When you want to start an eCommerce business, then you need to operate your business activities, and in this circumstance, you may apply the concept of eBusiness. But when you organize an eBusiness, it's not necessary to build an eCommerce platform. 

So, I have tried to provide a comprehensive differentiation between eCommerce and eBusiness in this article, and it will be very convenient for you to start your business. 

Ecommerce Shopping Cart Software

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