How are E-Business and E-commerce Different?
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How are E-Business and E-commerce Different?

By CIOReview | Wednesday, July 14, 2021

E-commerce vs. electronic business is not a competition but knowing the differences can significantly impact how companies design their business model.

FREMONT, CA: Even though the gap between e-commerce and electronic business (e-business) may appear insignificant, it is critical to understand the differences because many aspects of the retail market depend on it.

Despite a recent downturn in the growth pace of the business, total e-commerce revenues (retail and digital services) are expected to reach $765 billion by 2021. E-commerce comes in various forms and can be used to cover a wide range of company strategies.

What is e-business?

The use of the internet and online technology to facilitate business is known as e-business or electronic business. E-business is not primarily performed online but exploits the internet's capabilities to improve a company that is also carried out offline, such as a brick-and-mortar store. 

Electronic business, like e-commerce, exists in different formats that make it applicable to a wide range of industries.

What are the essential differences between e-commerce vs. e-business?

  • An e-commerce business provides an online monetary transaction service, whereas an electronic business incorporates online technology into its business strategy in some way.

  • E-commerce is a type of business that takes place entirely on the internet. But electronic business can take place over the internet, intranet, or extranet. The fundamental distinction is that an organization can be classified as an e-business even if it internally employs online technology.

  • One aspect of an e-business that can be leveraged is e-commerce. Any company that uses internet technologies as part of its business model is considered an electronic business. It can be as essential as a physical store utilizing social media marketing to increase customer traffic. Even when no transactions are taking place, the utilization of online technology for business reasons qualifies it as an electronic business.

  • The customer, who is given the ability to make purchases online, is the primary beneficiary of e-commerce. But the main beneficiary of an electronic business can be the consumers, business partners, suppliers, and others.

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