What is the Difference Between Ecommerce and Ebusiness?

Posted 4 years ago by Max Komonov

As桂an桂aspiring online seller, two terms you should be桂familiar with about the桂online selling world are ebusiness and桂ecommerce. Many people consider these two terms interchangeable. Therefore, it�셲 no桂surprise that we桂think making a桂distinction between them is桂unimportant. If桂success in桂online selling is桂important to桂you, you should know the桂difference between these two terms, and桂when to桂apply each one.

What is桂the桂difference between ecommerce and桂ebusiness? This article will answer the桂question by桂introducing both concepts and桂showing you how they are different.

What is桂Ecommerce?

Ecommerce is桂an桂abbreviation for桂혫electronic commerce,혬 and桂it桂is桂the桂process of桂selling goods and桂services using the桂internet. To桂most people, ecommerce simply means selling only physical goods using the桂internet, as桂seen on桂platforms like Amazon and桂eBay. However, ecommerce goes way beyond that. It桂is桂a桂term for桂any桂commercial transaction that occurs online. It桂does not have to桂be桂only physical goods, but also encompasses digital goods, online courses, and桂more.

The rise of桂ecommerce in桂the桂21st century has been steady. However, since the桂start of桂the桂coronavirus pandemic, there has been massive growth in桂the桂sector. Consequently, there is桂a桂projection of桂a桂 of桂$21桂trillion by桂2027. This further shows how large the桂sector is桂and桂how important it桂is桂for桂interested individuals to桂know about it.

Types Of桂Ecommerce Models

There are four primary forms of桂electronic commerce, and桂each one is桂perfect for桂different a桂business model and桂need.

Business to桂Consumer (B2C)

The Business to桂Consumer (B2C) model involves a桂business selling its goods and桂services to桂consumers. It桂is桂the桂most popular form of桂ecommerce. The majority of桂Business to桂Consumer ecommerce involves online shopping. However, it桂requires that businesses do桂a桂lot of桂product marketing to桂engage many customers.

Examples of桂a桂B2C model include:

Online shopping of桂goods such as桂clothes, shoes, without visiting a桂physical shop.
A桂game company offering its customers in-game purchases

Business to桂Business (B2B)

Businesses use the桂Business to桂Business model to桂sell products and桂services to桂one another. Depending on桂the桂item they are transacting, the桂buyer can sometimes be桂a桂consumer, or桂the桂buyer can resell to桂the桂end-user. When compared to桂B2C transactions, business-to-business transactions have a桂longer sales cycle. However, they have a桂higher order value, and桂there is桂a桂recurrence of桂purchases.

An桂example of桂a桂business-to-business (B2B) transaction is桂a桂company selling video production services to桂another company for桂marketing campaign use.

Consumer to桂Consumer (C2C)

The consumer-to-consumer ecommerce model is桂a桂popular model on桂ecommerce platforms such as桂eBay. From the桂name, it桂involves consumers selling products and桂services to桂one another. The ecommerce platforms make their money from this model by桂charging the桂customers for桂transaction and桂listing fees.

Consumer to桂consumer ecommerce model is桂characterized and桂propelled by桂self-motivated people. However, since customers majorly control the桂model and桂there is桂less management intervention, the桂C2C model lacks quality control and桂maintenance.

Prominent examples of桂businesses running the桂C2C ecommerce model are online shopping involving an桂individual offering a桂personal artifact for桂sale on桂.

Consumer to桂Business (C2B)

The consumer-to-business ecommerce model involves individuals selling products and桂services to桂a桂business. In桂this model, a桂website will aid a桂customer in桂putting up桂what they offer such that businesses can bid for桂them. Examples of桂a桂Consumer to桂Business (C2B) model include:

Social media influencers using social platforms like Instagram, Facebook, and桂Twitter to桂promote a桂business for桂a桂fee.
People who are selling their services as桂freelancers on桂platforms such as桂Upwork (previously Elance) and桂Fiverr.

What is桂Ebusiness?

Ebusiness simply means conducting business using the桂internet and桂online technology. Unlike ecommerce, ebusiness is桂not exclusive to桂buying and桂selling products and桂services online. It桂uses the桂power of桂the桂internet to桂enhance other forms of桂business activities which includes servicing customers, payment processing, managing production control, recruitment, collaborating with business partners, sharing information, running automated employee services, recruiting, etc. Ebusiness involves running a桂physical store both online and桂offline in桂a桂mutually exclusive manner, and桂it桂is桂more efficient.

Types Of桂Ebusiness Models

Ebusiness also has two significant forms/models employed by桂different types of桂business.

Pure Play Model

The pure-play ebusiness model applies to桂companies that work with only one line of桂products. This model is桂well-loved by桂investors because they are easily analyzed. However, they are not common. Therefore, they are hard to桂identify since many companies presently deal with more than one product.

These businesses can operate both online or桂offline. So桂far, they only deal with a桂particular product. Example is桂a桂business that deals with only football boots and桂makes sales online and桂offline.

Note: There are situations in桂which Pure play business doesn�셳 have to桂be桂online-based. For example, Starbucks operates a桂pure play business model since their resources and桂effort are directed to桂only one product桂�봠offee.

Bricks and桂Clicks

This is桂the桂most popular ebusiness model, in桂which a桂store operates both online and桂offline. It桂also goes by桂the桂names 혫click and桂mortar혬 and桂혫clicks and桂bricks.혬 The business model comprises a桂physical store (brick/ brick and桂mortar) and桂an桂online store (clicks). Customers can make purchases by桂visiting the桂physical store or桂by桂going through the桂online store.

Due to桂the桂emergence of桂the桂coronavirus pandemic, many businesses now run the桂bricks and桂clicks business model. Examples of桂big-name companies running the桂business model include Target, , Old Navy, Petco, and桂DSW. All of桂them have retail stores. However, they are also accessible via their online stores.

Ecommerce Vs. Ebusiness: What Is桂the桂Difference Between Ecommerce and桂Ebusiness?

After getting to桂know the桂two terms intimately, we桂can comfortably answer the桂question: what is桂the桂difference between ecommerce and桂ebusiness. Below are five differences between the桂two terms apart.

Ecommerce is桂a桂subset within an桂ebusiness superset

When comparing both terms, it桂is桂correct to桂say that ecommerce is桂a桂subset of桂ebusiness. Ebusiness incorporates internet or桂online-based electronic business transactions, which is桂similar to桂the桂ecommerce aspect.

Types of桂online activities

Ecommerce involves businesses and桂customers making commercial transactions online. On桂the桂other hand, ebusiness involves making online commercial transactions, obtaining raw materials, and桂educating customers. Also, in桂ecommerce, there is桂a桂monetary transaction limit. However, there is桂no桂monetary limit to桂the桂transaction on桂ebusiness.

Main benefactor

The person who benefits most from ecommerce business is桂the桂customer who is桂making the桂online purchase. However, there is桂a桂wide variety of桂people who are the桂main benefactor in桂ebusiness. This includes customers, business partners, suppliers, etc.

Use of桂the桂Internet

From the桂above explanation, ecommerce is桂an桂electronic business that only occurs on桂the桂internet. However, in桂ebusiness, business processes can occur both online using the桂internet, intranet, and桂extranet electronic networks and桂offline.

Requirements

Ecommerce requires a桂business or桂customer to桂have access to桂a桂website. This depends on桂the桂type of桂ecommerce business model you are running on. However, there are ecommerce platforms such as桂eBay, Selar, etc., that provide such templates. On桂the桂other hand, ebusiness requires enterprises to桂access a桂website. Also, ebusiness includes having good Customer Relationship Management and桂Enterprise Resource Planning for桂the桂effective running of桂business online.

Conclusion

We桂hope our article has given you a桂better understanding of桂the桂terms ebusiness and桂ecommerce. Even though the桂words look similar, they are very different. However, knowing the桂difference between ebusiness and桂ecommerce can help you design your business model using the桂present technology to桂suit yourself and桂your customers.

Choosing the桂right model depends on桂what you want. For example, you have to桂know whether you wish to桂conduct transactions online only or桂you want to桂enhance your business with online technology without adding an桂online store to桂your website? Answering these questions comes with knowing the桂differences between ebusiness and桂ecommerce, which we桂explained in桂this article. Be桂diligent about what you want and桂consider all differences before choosing between the桂two concepts for桂your business model.

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About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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