eCommerce and eBusiness are terms that are often used interchangeably. The reason is they are closely interconnected. But there's a fair amount of difference between them which is important for every business to understand. So, let's understand and go through each term in detail.
What is eCommerce?
eCommerce stands for electronic commerce. It is a process of buying and selling of goods or services over the internet. Some real examples of eCommerce include online shopping, online banking, online ticket booking, etc. eCommerce basically requires a website where a seller communicates and sells goods to the buyer without interacting in person. Through the website, the seller can advertise, market, sell and conduct transactions with the help of electronic media. There are numerous platforms available in the market that help businesses create eCommerce websites. One of the best options is Magento web development.
What is eBusiness?
eBusiness, meaning electronic business, is an online presence of a business. A business conducted with the help of the internet or electronic data interchange can be termed as eBusiness. However, it is not confined to only buying and selling of goods online. It includes several other activities that form a part of business providing services to customers, employees, clients, partners, etc. All the basic business operations are done through the electronic media. And, eCommerce is one of the components of eBusiness.
Major Differences Between eCommerce and eBusiness:
1. eCommerce includes processes that are outward facing. It caters to customers, suppliers, partners, and covers sales, marketing, order tracking, customer service, delivery, purchasing raw materials or supplies for production.
eBusiness, on the other hand, includes eCommerce along with other internal processes like production, product development, inventory management, risk management, knowledge management, finance and human resource. It mainly focuses on internal processes with the aim of improving efficiency, productivity and cost savings.
2. eCommerce involves three types of integration such as:
- Vertical integration of front-end web apps to the existing transaction platforms,
- Cross-business integration of a company with web-based marketplaces (websites of customers, suppliers or intermediaries), and
- Integration of technology with the redesigned processes for order management, purchasing or customer service.
Whereas eBusiness involves four types of integration:
- Vertical integration between web front and back-end systems
- Lateral integration between a company and its customers, suppliers, business partners, or intermediaries
- Horizontal integration among e-commerce, customer relationship management (CRM), enterprise resource planning (ERP), supply chain management, and knowledge management systems, and
- Downward through the enterprise for integrating new technologies with radically redesigned business processes.
3. eCommerce connects to the world with the help of internet while eBusiness uses internet, intranet, and extranet to connect with the parties.
The internet and electronic mediums are too vital to any business in today's economy. Thus, understanding the difference between these terms is crucial. Since eCommerce is the subset of eBusiness, it can be termed as eBusiness website, but eBusiness is not necessarily eCommerce. Most of the companies are doing eBusiness today to capture the major part of the market and streamline internal processes. While many other companies have emerged to be eCommerce businesses taking the conventional form of commercial business online.
Which category does your business belong to - eCommerce or eBusiness? Drop your answers in the comment box below.