Do you know the difference between e-business and e-commerce? Have you been using these terms are synonymous and wonder if you are actually using them correctly? In order to have a better understanding of these two terms, let’s define each of them individually.
E-commerce or electronic commerce covers activities carried out via the Internet or other electronic systems. In e-commerce, products and services are bought and sold through the Internet and the transactions are completed automatically. E-commerce websites have the ability to take orders online through a stop feature that is provided by the e-commerce or shopping cart software. E-commerce is based on the use of technology, such as electronic funds transfer, online marketing, supply chain management, data collection systems, inventory management systems, and electronic data interchange.
E-commerce software solutions using all before the above technologies to create a fully functional e-commerce websites. E-commerce websites are also called virtual storefronts or virtual malls, because they are known to be the product catalogs. Stores that sell products like services may offer tangible products and intangible ones like digital downloads of music, software or books. To put this in simple terms, e-commerce is the online transaction. All business transactions are made entirely through the Internet.
e-business or e-business, on the other hand, is considered the integration of e-commerce activities in the business flow of the company. For example, you have a business, and you decide to start accepting purchases made online, your company has transitioned from a traditional business to e-business. When e-commerce activities will be an integral part of the overall business, which is when you can make your e-business. Companies that integrate standard activities in their sites are called e-business because their website will be sales tool to generate even more profits.
E-business is more difficult to keep the traders have to control both the website and the other internal business functions, such as the production of goods or services, product development, finance, human resources, etc. Most traditional businesses transition to e-business because they can capture more customers through the World Wide Web. It also makes their business more professional-looking and legitimate because customers can easily contact them through the website or look up their business to learn more about the company.
concepts of e-business and e-commerce are usually used interchangeably, but it should be used correctly so that people will know the true nature of each. Now that you have a good idea of what between the two, which do you want your business to move to? Hide it in your business plan so you have the right goal to aim for.