E-Business Vs E-Commerce - What's The Difference?

Fun fact: China holds the greatest market share for e-commerce.

But what is e-business then? 

Let’s clear this confusion by understanding the difference between e-business and e-commerce.

Both are often used interchangeably, but they refer to different aspects of conducting business online. 

In this article, we will explore the difference between e-commerce and e-business, and how they are being used by companies to stay competitive in today's digital landscape. 

We will also examine how these concepts have varying types and benefits and then continue to list some of their examples. 

But first, let’s start by looking at what is e-business.

Read more: How to stand out in a competitive market

What Is E-Business?

E-business, also known as electronic business, refers to the conduct of business over the internet. 

This includes buying and selling products or services, as well as the transfer of money and data to facilitate these transactions. 

It encompasses a wide range of activities, including e-commerce, digital marketing, online banking, and electronic data interchange (EDI). 

It can be conducted through a variety of channels, such as websites, mobile apps, and social media platforms.

Fun fact: Optimizing checkouts can increase conversion rates by 35.26 percent.

Benefits

Out of the numerous benefits, we have listed a few:

• It allows businesses to reach a global audience, increase efficiency and productivity, and reduce costs. 
• It allows customers to shop and conduct transactions at any time, from any location. 
• It enables the growth of e-commerce and the development of new business models such as online marketplaces, digital platforms, and subscription-based services.

Types

Businesses can use one or a combination of the following models to sell their products and services online. 

Choosing the right model depends on the type of products or services offered, the target market, and the business's overall goals and objectives.

There are several types of e-business models, including:

1. Business-To-Consumer (B2C): 

This model involves businesses selling products or services directly to consumers. 

Examples include online retailers, travel websites, and online marketplaces.

2. Business-To-Business (B2B): 

This model involves businesses selling products or services to other businesses. 

Examples include manufacturers selling products to distributors, and wholesalers selling products to retailers.

3. Consumer-To-Consumer (C2C): 

This model involves consumers selling products or services to other consumers. Examples include online marketplaces such as eBay and Etsy.

4. Business-To-Government (B2G): 

This model involves businesses selling products or services to government organizations. 

Examples include businesses selling products to government agencies, or providing services such as IT consulting to government organizations.

5. Mobile Commerce (M-Commerce): 

This model involves conducting e-business transactions via mobile devices such as smartphones and tablets. 

Examples include mobile apps for online shopping and mobile payments.

6. Subscription-Based: 

This model involves customers paying a recurring fee to access a product or service, such as streaming services, meal kits, and software as a service (SaaS).

7. Social Commerce: 

This model involves conducting e-commerce activities through social media platforms such as Instagram, Facebook, and TikTok. 

Examples include businesses selling products directly on social media platforms, like Markaz, and influencer marketing.

8. Platform-Based:

This model involves a business creating a platform that allows other businesses or individuals to conduct e-commerce activities, such as Amazon and Alibaba.

Fun fact: Retail mobile shopping sales increased by 15.2% from 2020 to $359.32 billion in 2021.

Examples

These e-businesses have been successful by providing customers with a convenient and personalized experience, leveraging technology to improve efficiencies, and disrupting traditional business models. 

They have also focused on building a strong brand identity and providing value to their customers.

1. Markaz

Markaz is a social commerce platform that allows individuals to resell with zero investment by connecting with customers on social media platforms. 

On a monthly basis, users are earning up to Rs 45,000 from the comfort of their homes.

Markaz is ideal for three groups of people:

1. Students who are looking to upskill themselves while studying.
2. Housewives looking to make some money while managing their chores and staying at home.
3. Corporate professionals with some time to spare outside of their 9-to-5 jobs.

It has used technology and data to provide the best experience to our users, creating over a million micro entrepreneurs in Pakistan. 

What makes Markaz so great is the features that it offers such as inventory management, order tracking, payment processing, and integration with social media platforms like Facebook. 

Additionally, since the users are busy with many things, Markaz handles all things like delivery, payment, and returns and refunds for them.

This is why it is a great option for businesses that want to leverage social media to reach new customers and grow their sales.

2. Amazon: 

Amazon is one of the largest e-businesses in the world, offering a wide range of products and services including books, electronics, clothing, and groceries, as well as streaming music and video, and cloud storage. 

It has revolutionized the e-commerce industry with its efficient logistics, easy-to-use website, and its ability to deliver a personalized shopping experience to customers.

Amazon has 37.8% of the US e-commerce market and is one of the largest online retailer companies in the country. 

Additionally, during the second quarter of 2022, the company's total net revenues came to about $121.2 billion.

3. Uber and Lyft: 

Uber and Lyft are examples of e-businesses that have disrupted the traditional taxi and transportation industry by using technology to connect riders with drivers through a mobile app. 

They have made it easy for people to hail a ride, track the driver's location, and make payments all through the app.

4. Expedia, Travelocity, and TripAdvisor: 

These travel sites have made it easy for people to search and book travel arrangements, including flights, hotels, and rental cars. 

They have also provided an easy way for customers to read reviews and compare prices, making it easier for them to find the best deals. 

Such travel sites have also expanded their services to include vacation rentals, activities, and vacation packages.

Read more: The top 5 online business advantages that the Markaz app offers resellers

What Is E-Commerce?

E-commerce, short for electronic commerce, refers to the buying and selling of goods or services over the internet. 

This includes the exchange of money, data, and information to facilitate these transactions. 

E-commerce can take place through a variety of channels, such as online marketplaces, digital platforms, and company-owned websites.

Benefits

E-commerce has revolutionized the way businesses operate and consumers shop. Here are some of its advantages:

• It allows businesses to reach a global audience, increase efficiency, and reduce costs. 
• It also allows consumers to shop and make purchases at any time, from any location, and compare prices and products easily. 
• E-commerce has enabled the growth of online marketplaces, digital platforms, and subscription-based services.

Types

There are several types of e-commerce business models, including:

1. Business-To-Consumer (B2C): 

E-commerce transactions between a business and a consumer, such as online retail sales.

2. Consumer-To-Consumer (C2C): 

E-commerce transactions between two consumers, such as online marketplaces like eBay or Amazon.

3. Business-To-Business (B2B): 

E-commerce transactions between two businesses, such as electronic data interchange (EDI) and electronic procurement.

4. Consumer-To-Business (C2B): 

E-commerce transactions in which a consumer provides a service to a business, such as online freelance platforms.

Read more: The Top 3 E Commerce Strategies To Grow Sales

Examples of E-Commerce

These are just a few examples of successful e-commerce businesses that have disrupted their respective industries with innovative business models and strong brand identities. 

They have been successful in creating a unique and convenient shopping experience for their customers and building a loyal customer base.

1. Warby Parker: 

Warby Parker is an online eyewear retailer that offers fashionable and affordable eyewear. 

The company also has a "Buy a Pair, Give a Pair" program, where for every pair of glasses purchased, a pair is donated to someone in need. 

Warby Parker has been successful in creating a strong brand identity and offering a unique and socially responsible shopping experience.

2. Toms: 

Toms is an online shoe and accessories retailer that operates on a one-for-one business model. For every product purchased, Toms donates a product to someone in need. 

The company has expanded its product line to include eyewear, coffee, and bags, and has been successful in building a strong brand identity based on its social mission.

3. Birchbox: 

Birchbox is an online subscription service that delivers personalized beauty and grooming products to subscribers on a monthly basis. 

The company has been successful in creating a personalized and convenient shopping experience for its customers and has expanded its offerings to include men's grooming products and a virtual store.

Read more: The 4 Key Traits Of A Successful E Commerce Manager

What Is The Difference Between E-Commerce and E-Business?

E-commerce and e-business are related but distinct terms. 

E-commerce is a subset of e-business, it is a commercial transaction that is carried out electronically.

Differentiating Elements

Here are some key differentiating elements between e-commerce and e-business:

1. Scope: 

E-commerce is specifically focused on buying and selling goods and services over the internet, while e-business is a broader term that encompasses a wide range of activities that involve the use of the internet to conduct business.

2. Transactions: 

E-commerce is mainly focused on commercial transactions, such as buying and selling products and services, while e-business also includes other types of transactions such as data and information exchange and collaboration between businesses.

3. Channels: 

E-commerce typically takes place through online marketplaces, digital platforms, and company-owned websites, while e-business can take place through a variety of channels, such as websites, mobile apps, and social media platforms.

4. Business Models: 

E-commerce business models can include a wide range of business models such as online marketplaces, digital platforms, and subscription-based services.

On the other hand, e-business can include traditional business models as well as new models that are enabled by the internet, such as digital platforms, peer-to-peer marketplaces, and on-demand services.

5. Purpose: 

The main purpose of e-commerce is to facilitate transactions and generate revenue, while the main purpose of e-business is to conduct business over the internet.

6. Audience: 

E-commerce is mainly focused on the consumer audience, while e-business can also include transactions between businesses.

Read more: How to do Zero Investment Businesses Work?

Final Thoughts

In conclusion, e-business and e-commerce are closely related concepts that are increasingly being used by companies to conduct business online. 

E-business refers to all the activities a company conducts online, including online transactions, electronic data interchange, and digital marketing, while e-commerce specifically refers to buying and selling goods and services over the internet. 

It's important for companies to understand the difference between e-business and e-commerce and how to utilize their strategies to reach their target audience more effectively and increase their revenue.

FAQs

Is WhatsApp an ecommerce?

Yes. Comparing WhatsApp for Ecommerce to emails and SMS, you can increase your sales by up to 5 times. WhatsApp is the most effective medium for marketing your e-commerce business, with an industry-high message open rate of 98% and a click-through rate of 45–60%.

What is the similarity between e-business and e-commerce?

There are many key parallels between e-business and e-commerce. For instance, in order to function, both e-commerce and e-business depend on customer contacts (Qteishat, Alshibly, & Alzub, 2015). The customer must enter the online platform, select the desired goods or services, and place their order.

Is social media a ecommerce?

Social media and e-commerce have combined to form social commerce. Social media platforms are used by brands that engage in social commerce to advertise and sell goods and services. You probably already engage in social commerce if your company relies on online sales.