What is the difference between eBusiness and eCommerce? — Explain to me as if I’m 5
Summary: eCommerce typically refers to the transaction aspect of online business (think of an online store and all its operations are made online). eBusiness encompasses a wider range of activities that are conducted using digital technologies (online banking is one example).
My morning started a little different today. Instead of a link to a funny meme or to the world’s latest tragedy, my friend asked me if I was up; Having the confirmation that I was awake, but not up yet, she proceed to confidently say that I, as a former eCommerce director, would be able to help with her homework.
That for some reason made me insecure — what if I couldn’t help her? Not caring for my unspoken feelings, she presented the questions: “How does e-commerce differ from e-business?” and “Where does it intersect with e-business?”.
After eight years of leading an eCommerce department, running my own businesses, and thinking I could (partially) nail any eCommerce-related question I’d ever be questioned, for about 10 seconds all I could feel was an embarrassment for struggling with my answer — Isn’t this an obvious answer? Why did she need my help? Why couldn’t I find simple but good words to explain what I thought the difference was? So, for all students, new entrepreneurs, and entrepreneurs-to-be, here’s a summary of what the internet has to say about it.
What is eCommerce?
The most common definition of eCommerce might be Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions. (Shopify)
In my words, eCommerce is an “online store”.
Think of any store that sells products or services (yes, it can be tangible or intangible*) — you can think of your favorite store growing up, or that small shop around the corner — if everything that store does is online (they have a website, they have photos and descriptions of their products, receive payments via their website, they do customer service, etc) they are an eCommerce business.
*Something you cannot touch/does not have a physical existence
What is eBusiness?
eBusiness, on the other hand, refers to the use of the internet to conduct any business activity. This can include eCommerce, but it can also refer to things like online banking, online bill payment, and other activities that involve the exchange of information or the conduct of business online. In other words, eCommerce is a type of eBusiness, but eBusiness encompasses a wider range of activities beyond just buying and selling products and services.
**My friend asked me if paying a bill online was eCommerce. No, that is a task you are executing online for what’s likely to be an eBusiness.
Paying credit card bill = Task
Online banking = eBusiness
An online store that sells credit card wallets = eCommerce
Are all eCommerce an eBusiness?
Yes, eCommerce is an eBusiness. Not all eBusiness are eCommerce, though.
Keep in mind a company might have brick-and-mortar but also online stores (eCommerce).
Where do they intersect?
eCommerce and eBusiness are often used interchangeably. eBusiness encompasses a wider range of activities than eCommerce, including those related to marketing, supply chain management, and customer service.
Both eCommerce and eBusiness rely on digital technologies to facilitate online transactions and communication between businesses and customers. They also involve the use of websites and other online platforms to market, sell, and deliver products or services.
In short, eCommerce is a subcategory of eBusiness that focuses on the buying and selling of goods and services over the internet, while eBusiness encompasses a wider range of activities that are conducted using digital technologies.
I hope this is simple enough to give you a basic idea of the difference between the two! I’ll be happy to answer any questions you might have about the topic 🙂
