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What is the difference between e-Commerce and e-Business concepts?

The business sector has taken a resounding turn with the arrival of digital transformation. The Internet has given way to new business models that have become essential in our daily lives.

More and more subscribers are on Netflix and Spotify, students who learn through e-Learning platforms, buyers on Amazon, or those who check their bank account through a mobile application – online banking.

However, we must be careful when we talk about e-Business since they tend to put their concept as a synonym for e-Commerce. We are talking about businesses that have to do with the Internet in both cases, but their characteristics depend on the type of operations.

If you want to create a company on the Internet, you should be clear about the differences between electronic business (e-Business) and electronic commerce (e-Commerce).

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What is e-commerce?

E-commerce, also known as e-commerce, is an online business model that involves buying and selling products or services over the Internet. For example, websites (online stores, e-commerce pages), social networks, and mobile applications.

Our professor of Matthew Lepre reviews from the online e-commerce course: online store management, comments on the following about the development of e-commerce in recent years:

The growth of e-commerce has been unstoppable, reaching more than 10% of retail trade in countries like the United States. What makes e-commerce more interesting are its prospects for the future. Consumption habits change rapidly where convenience and personalization are increasingly important in digital and not so digital businesses.

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What is e-Business?

When we talk about e-Business, Electronic Business, electronic business-, we refer to those business processes carried out through electronic means, be it a website, an App, a social network, or an instant message.

Therefore, all departments of a company can incorporate e-Business into their essential processes.

Thus, e-Business is not limited only to the purchase and sale of goods but includes other activities that are also part of the business. Very significantly, it is not limited to relationships with external agents. It also provides services to internal agents as now employees or shareholders.

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Differences between e-commerce and e-business

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Before telling you the differences between e-commerce and e-business, we will explain the concept of Electronic Business or electronic business and the 8 basic mistakes you should avoid when creating your online site.

The e-business processes cover business conducted through electronic means production, administration and finance, product development, and strategies.

E-business commercial strategies include:

  • Total business redesign seeking to improve the use of network technology.
  • Opportunities to make a profit, but with costs and efficiency in operations as the primary focus.
  • Integration of operations with ERP or CRM applications.
  • Therefore, these are the main differences between e-commerce and an e-business:
  • E-business includes e-commerce, but also the internal processes of the company.
  • E-commerce includes monetary transactions and e-business and consists of these activities and manages everything related to suppliers and customers.
  • While e-commerce platforms only need the Internet to connect.
  • e-business needs the Internet, intranet, and extranet to communicate with everyone involved.
  • You must understand these differences to see how they affect, among other things, your sales budget.

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E-commerce or marketplace?

First of all, let’s define what a marketplace or digital market is.

It is an online market that brings together a large number of stores of any type. A marketplace, in general, serves for other businesses to promote their products or services.

Now yes, open your e-commerce or enter a marketplace? This is the question you need to answer first before creating your virtual store.

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What do e-commerce platform experts say?

The digital marketing expert Juan Merodio recommends first opening your online store.

Then, in a second phase, entering a marketplace to increase your diffusion. You are probably wondering why.

For Merodio, having your e-commerce platform means having control of the core of your business, that is, the income generation mechanism. Something that a marketplace does not allow you to do.

“An online store is like having a physical store, and the marketplace is like the shopping center that houses that and other physical stores,” he explains.

Starting to sell your products or services through a marketplace is a decision that can be pretty comfortable.

Since you will not have to go through all the stages involved in creating web pages with e-commerce.

However, remember that your sales will depend on the decisions that the website makes.
Marketplace examples: Amazon and AliExpress, among others.

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In conclusion:

If you want to start selling online, it is best to create your e-commerce website.

If you already have an online store and want your business to have more reach and a more significant number of potential customers, start selling on a marketplace.

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