What is eCommerce and eBusiness?

what is ecommerce

This is one of the most vague topic used interchangeably, sometimes it is used to differentiate one product from other. But as a whole these terms are very different and it affects todays internet business scenario vastly.

Being an owner of web design agency, I have been asked many times by my clients about the basic difference between eCommerce and eBusiness. This is a very obvious question comes into the mind of those who are into internet business or related to internet by any means.

Without knowing the basic difference between the two and eCommerce entrepreneur would not be able to take right decisions for his venture.

In both the cases “e” stands for electronic network and depicts the application of electronic network technology which comprises of internet and electronic data interchange (EDI) for the betterment of business process. Let us discuss these two separately.

What is eCommerce?

what is ecommerceeCommerce can be abbreviated as “Electronic Commerce” is actually a form of business carried over internet or other network computers.This is a kind of outward facing business model in which most of the activities are customer centric.These activities include marketing,sales,order,delivery and customer service,procurement etc.

eCommerce actually a kind of outward facing electronic business model which is done on internet in which customer can buy anything from the internet by placing an order directly to the online store (which is a non physical store actually in the form of a website or virtual store). Products are listed in the website and customer can select the product he wants to buy and add to his shopping cart and checkout by paying his bill. Subsequently his order which has been placed would be forwarded to the supplier by generating invoice for the same and then the actual product will be shipped to the customers address. This concludes the very simplest method of eCommerce but it is very vast in nature working in three dimensions:

1. Vertical Integration: This is actually the face of the store which interacts with the customer.
All the products are listed in it for selection and this interface also handles purchase transaction.

2. Cross Business Integration: This is the integration of a companies website or store website  with web sites of customers, suppliers or intermediaries such as Web-based marketplaces.

3. Horizontal Integration: This is  a basic technology integration deals with the order handling, purchasing and customer service.

So, as a customer the actual business we do on internet by purchasing from an online store is an eCommerce business model as a whole.

What is eBusiness?

what is ebusinesseBusiness which can also be termed as “Electronic Business” also covers eCommerce and also deals with the vast array of activities internally. eBusiness includes internal processes such as production, product development, inventory management and risk assessment, also covers finance, knowledge management and human resource management.

Unlike eCommerce this is more internally biased business activity which is actually governed by the management theory. It ensures smooth running of online store.
eBusiness deals with the productivity and cost effective implementation of production of goods and services. It ensures the best practice of business management to be followed for enhance profitability and customer service. CRMs and ERPs are the effective tools of eBusiness to integrate with business for various management within  the companyl.

So, we can conclude that eBusiness is the backbone of internet business model and also supports eCommerce as a whole for doing  business activity over internet and other computer networks.

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