Online shopping is a dominant force for buying and selling items worldwide. Customers no longer have to personally visit brick and mortar locations and can purchase anything they need with the click of a button. The convenience, simplicity, and speed of online shopping are responsible for its popularity. Shopping online is made possible by two electronic networks, eCommerce and eBusiness. The two terms are often used interchangeably, but actually, have separate definitions. Understanding the similarities and differences between eCommerce and eBusiness are very important, so in this article, we explain what each means.
What is eCommerce?
eCommerce is shorthand for electronic commerce and is only describes the process of buying and selling over the internet. eCommerce is all of the outward-facing processes that touch suppliers, customers, and external partners. eCommerce is easy to implement overall, as it only requires vertical integration, cross-business integration, and integration of technology. Because eCommerce only refers to buying and selling, it is limited to monetary, commercial transactions. A website is the only basic requirement for eCommerce, and buyers and sellers can communicate without ever meeting face-to-face. All advertising, marketing, selling, and transactions are done through the internet. Examples of eCommerce include:
- Online banking
- Online retail shopping
- Online ticket booking
- Social networking
There may be different types of eCommerce depending on who the target audience is, and it is possible for a business to fall under multiple categories. The types of eCommerce and examples include:
- B2B: Buying and selling of goods between businesses. Some examples include Oracle, GE, Qualcomm.
- B2C: The business sells goods directly to customers. Examples include Dell, Apple, HP.
- C2C: In this category, commercial transactions occur between customers. OLX and Quickr are two examples.
- C2B: The process of commercial transactions from customers to business.
What is eBusiness?
eBusiness, or Electronic Business, is a superset of eCommerce and is the total electronic presence of a business. eCommerce is actually a component of eBusiness, but eBusiness is not limited to buying and selling goods. The internet, extranet, web, and intranet are used to conduct eBusiness, and eBusiness includes more business processes. eBusiness has four directions of integration include vertically, laterally, horizontally, and downward. Some of the business processes included in eBusiness are:
- Electronic order processing
- Supply chain management
- Customer relationship management
- Customer service
- Employee communication
There are also two different types of eBusiness which are:
- Pure play: This kind of company focuses on a single product or service instead of multiple ones at a time.
- Brick and click: these kinds of businesses run both online and offline. For example, they have a portion of their business in a physical store, but also sell on their website. Many retail stores operate this way, including Nike, Hollister, Apple, etc.
Difference Between eCommerce and eBusiness
eCommerce is the buying and selling of things using the internet, but eBusiness is not just limited to buying and selling. Here are some primary differences between the two:
- eCommerce is a component of eBusiness
- eCommerce is limited to the internet, but eBusiness can use intranet and extranet to connect.
- eCommerce uses an extroverted approach that includes customers, supplies, and distributors, but eBusiness has an ambivalent approach of internal and external processes.
- The basic requirement for eCommerce is a website, whereas eBusiness needs a website, CRM, and ERP to run business over the internet.
- eBusiness has more directions of integrations.
- eBusiness has greater potential benefits like more efficient processes and greater profit potential.
Moving to eBusiness
An eBusiness strategy is more complex, and therefore more complicated to execute than eCommerce. While all companies really should have an eCommerce strategy, many are looking to move to an eBusiness strategy. Developing an eBusiness strategy is a large challenge that involves great organization change and consolidation of eCommerce, ERP, CRM, and supply-chain systems. In order to successfully run an eBusiness, you need one platform that does it all.
That’s where we come in. MobilityeCommerce is the only platform you will ever need for your eCommerce or eBusiness. We offer unparalleled integration for all of your ERPs, workflows, and marketplaces. Manage your entire business, including ERPs, CRMs, and other enterprise solutions from one easy-to-use platform. We are the enterprise-level solution for all your business needs and can help you transform into a powerful eBusiness. Learn more about how we can help you manage your eCommerce or eBusiness by contacting us or starting your free demo today.