How Do E-commerce And E-business Differ

How Do E-Commerce And E-Business Differ?

Shifting to the digital space has opened up a world of opportunities for us. Almost every aspect of our lives has been seemingly integrated into the online world, and this has brought about new levels of convenience in every activity we perform. Right from groceries to shopping for Christmas, digital stores come to our aid for the slightest of tasks.

E-commerce Vs. E-business: What Is The Difference?

However, since a large number of activities are conducted online, there is a need to categorize them based on the purpose that they serve. E-commerce and E-business are two such types of categories, albeit they are used interchangeably to a large extent. So, here is a comprehensive guide to help you understand where exactly the two concepts are diverse and what their uses are. 

E-commerce And E-business

What Does E-commerce Entail?

Ecommerce is essentially the act of conducting a commercial transaction through the usage of an online medium. This means that any monetary transaction that happens with the motive of some commercialization, such as online shopping, or buying tickets to a concert through an online platform, would be considered as e-commerce. 

Understanding E-business 

E-business covers a much wider spectrum when compared to e-commerce, and the latter simply happens to be a small subset of it. Through e-business, any type of activity that is conducted online (with the endpoint being profit motive of course), falls under the category. This means that transactions like the buying and selling of raw materials, supply chain management, are all characteristics of e-business since their role starts much ahead in the product cycle. 

Key Differences Between The Two

While it is not wrong to use them interchangeably, in some cases, e-commerce may not cover the entire catalog of e-business, in which case, understanding the key differences between the two can help you make use of the appropriate terms. 

In the case of eCommerce, the endpoint of the cycle of a product/service offered by a firm, wherein it exchanges hands falls under its purview, but the mere act of the firm existing in a digital space is known as e-business. E-commerce generally comes into play when the transaction takes place between a business firm and a consumer, but E-business is more appropriate when two or more business firms enter into an online transaction. The former requires the use of only one website to conduct the transactions, whereas e-business can be used through a range of digital platforms such as CRMs and ERPs. E-commerce also commands the usage of the internet only, whereas e-business can be conducted via the internet, extranet, or even the intranet. As a result, it can be said that e-business is the superset and e-commerce, which has a limited scope, is the subset of it. 


Even though e-commerce and e-business might appear to have some common characteristics, there are some major differences between the two, and it becomes important to know them so that the correct classification of online activities can be made. It helps to simply understand that e-business encompasses a larger set of things, and therefore has a wider scope when compared to e-commerce, which is fairly restricted to online commercial transactions only. 

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