What is E-Business

A business also called a company an enterprise or a firm is a legally recognized organization designed to provide goods or services to consumers. E- Business means electronic business it refers to the conduct of business on the internet that is using the Internet to connect with customers partners and suppliers.

E-Business means not only buying and selling but also servicing customers and collaborating with business partners.

What E-Business Includes

It includes research and development marketing manufacturing and inbound and outbound logistics E-Business implies the transformation of existing business processes to make them more efficient to engage in a business companies must be intelligent to unbolt data in their back-end IT systems so that they can divide information and carry out electronic transactions with customers’ partners and suppliers through the internet for some companies engaging in a business means adopting new web enabled business models auctioning off surplice codes selling products directly to consumers or joining in online purchasing cooperatives with their competitors.

for example one of the earliest businesses that aimed to serve a broad market was amazon.com the amazon.com of 1994 was very different than the amazon.com of today even if you could compare their homepage in 1994 to their current home page you’d be shocked at how much technology has changed but you would also notice that in 1994amazon.com was a specialty book store today while it still sells books it also sells nearly every other product you can think of clothes electronics toys household goods music movies and even food Amazon – is a service available in many large US cities where you can order fresh vegetables fruit and other food on Amazon and it is delivered the same dayamazon.com also includes the Amazon marketplace which is where third-party vendors can sell on Amazon much like eBay but Amazon marketplace doesn’t use bidding as the e part of e-business has changed Amazon is a great example of a company that has changed with it.

4 Major Constituents of E-Business

  • B2B Commerce

Here’s my take what is b2b marketing:  b2bmarketing is the process of planning and executing strategies and campaigns that position your brand in the chosen category or categories with the businesses most likely to buy and then creates demand for a well aligned sales force to do that you need to agree with sales what problem you’re best equipped resolving in to agree the target market.

A few benefits of B2B commerce are reduction in certain costs such as search costs reduction in the costs of processing, transactions, online processing, improves inventory management and logistics through B 2 B II markets suppliers are able to interact and transact directly with buyers there by eliminating intermediaries and distributors among the more evident benefits of a market is the boost in cost transparency which has the result of reducing price differentials in the marketplace, the combination of a significant number of reserves and sellers demand side economies of scale on network effects the more commonb2b examples and best practice models are IBM Hewlett Packard or HP Cisco and Dell.

  • B2C Commerce

B2C marketing or business to consumer marketing involves the techniques and strategies used to attract consumers to a product service or brand that individuals use in everyday life with the evolvement of the digital age B2C marketing has dramatically shifted the way consumers receive information engage in and interact with businesses and purchase products and services it used to be that the companies themselves would be the marketing approach as far as the who what where when how and why the goal here was to feed the masses per se and hope that consumers would take the bait now consumers are the driving force behind the content they see and with who they choose to interact so the goal of B2C companies is to be found.

B2C e-commerce reduces transaction costs by increasing consumer access to information market entry barriers since the cost of putting up and maintaining a website is much cheaper the more common B2C business models are the online retailing companies such as amazon.comdrugstore.com beyond.com Barnes & Noble and Toys.

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  • C2B

Consumer to business c2b is a business model in which consumers create value and companies that value, for example when they review consumer rights  review or when a consumer gives a useful idea for new product development then the consumer is creating value for the business if the business adopts the input accepted concepts our crowd sourcing and co-creation c2b replica also called a reverse auction or order collection replica enables buyers to name or demand their possess price which is often required for a exact good or service the website collects the organize bids after that offers the bids to participating sellers one more form of c2b is the electronic trade business model in which clients can present products and services to companies and the companies salaried the consumers. This trade model is a whole turnaround of the conventional business model in which companies present goods and services to customers business.

Consumer equals BtoC we can see the CtoB model at work in blogs or internet forums in which the author offers a link back to an online business thereby facilitating the purchase of a product like a book onamazon.com for which the author might receive affiliate revenues from a successful sale ellen’s was the first CtoB model ecommerce site CtoB is a kind of economic relationship that is qualified as an inverted business type the accent of the CtoB scheme is due to one the internet connecting large groups of people to a bi-directional system the large conventional media outlets are one directional affairs while the internet is bi-directional to declining price of Technology those now have right to use two technologies that were previously only available to big companies digital printing and gaining technology high-performance computers and powerful software.

  • Consumer2Consumer

customer to customer c2c markets offer an original way to permit clients to interrelate with each other conventional markets need business to customer dealings in which the client goes to the business in order to buy a goods or service in customer to customer markets the business facilitate an atmosphere where clients can sell goods or services to each other  types of markets include business-to-business b2b and business to customer b2c consumer to consumer or citizen to citizen electronic trade involves the electronically facilitated dealings between consumers through third party a common case is the online sale in which a customer posts an article for sale and other customers bid to buy it.

The third party usually charges a level fee or Commission the sites are only mediators just there to match clients they do not have to ensure quality of the goods being offered consumer to consumer c2c marketing is the formation of a product or service with the detailed promotional plan being for consumers to share that product or service with others as product advocates based on the value of the product the investment into concepting and developing a top-of-the-line product or service that clients are keenly looking for is reasonable to a trade pre-launch product alertness promotion there are many unlike classifications of marketing from government to business g2b business-to-business b2b business to consumer b2c to customer to customer C2C.

As a lot of companies typically function in one or more of these areas customer to customer businesses function only inside that specific area client marketing has become more accepted recently with the advent of the internet companies such as Craigslist eBay and other classified and auction-based sites have permissible for greater contact between consumers facilitating the customer to customer model also as it becomes more economical for persons to network on the Internet via social websites and individual contented creation this marketing model has been very much leveraged.

Difference between E-Business and E-Commerce Explained Thoroughly

Talking about the difference between the two terms e-Business and e-Commerce most of the people use these two terms electronic commerce and electronic business, interchangeably. Actually each of them got two distinctive features. Before that let’s talk about the history of electronic businesses an electronic commerce.

In the early 60sthe beginning of 60s there was a technique called as EDI, which means electronic data interchange. EDIs allowed companies to process routin e-business transactions such like orders and invoices, more rapidly more accurately and more efficiently than they could do through conventional methods of transactions.

And for decades banks have being using something called EFT’s electronic fund transfers also known as wire transfers so this EFT is the term used for EDI that involves the transfer of funds between financial institutions over the private communication networks. And that’s how the concepts of a e-business and ecommerce have started up.

Here you can see EDIs have a relationship with the e-business concept and EFT have a relationship with the e-commerce concept but when even internet has entered into the scene everything was changed and that’s what we are going to discuss all through this article. Internet began to advance in popularity among the general public in the early nineties but it took some more years to develop the rapid accessibility and the persistent connection to the internet and also the security layout now we have seen as HTTPS and SSL.


But anyway after the infrastructure was well established it make a huge impact to the businesses and their commercial transactions ok now let’s go back to our original question what is the difference between e-business and e-commerce.

If someone asked you the difference between these two terms you can show this venn diagram here you can see e-commerce is just a subset of e-business. E-business have many components and e-commerce is just a one just a one as well as a special one if ecommerce is not existed in the e-business most probably the e-business will not be existed in there.

To understand this difference perfectly we have to list down all the distinctive features of both e-commerce and e-business so in this table the left side column displays all the distinctive features in e-commerce and in the right side column it present all the distinctive and related features of the e-business now let’s take the first one it says ecommerce involves commercial transactions done over the internet so here the Ecommerce is doing commercial transactions now let’s take the e-business one it’s says e-business is conduct of business processes on the internet even though both are using the internet the things they are doing is different e-commerce is involved in commercial transactions and a e-business is conducting business processes so this commercial transactions might be included in the business processes.

Now the second feature e-commerce is use of electronic transmission medium that caters for buying and selling of products and services so , ecommerce is directly handling buying and selling activities in addition e-business also includes the exchange of information directly related to the buying and selling of products so e-business cover up the information exchange part of buying and selling activities in the third feature it say thus those activities which essentially involved monetary transactions are termed as ecommerce , so we got the point buying and selling activities means the activities that involves monetary transactions in the other side you can see the information exchange activities procurement of raw materials or goods customer education that means the interaction and communication with the customer and looking for suppliers that means the supplier handling now look at the fourth feature.

E-Commerce usually requires the use of our website and that is because if you are performing buying and selling activities you have to open the door for the public and the easiest way to do that is using a website now let’s see what kind of a thing e-business are using. E-business involves the use of the CRMS customer relationship management systems ERP enterprise resource planning system that connects different business processes so e-business are using large and complex systems because they need to handle different business processes and the next one says ecommerce involves the mandatory use of internet. definitely e-Commerce need internet and e-Business can involve the use of internet, intranet and extranet. Internet is publicly accessible because it is a public network and intranet is an internal network only the people who are authorized within an organization can access it an extranet is external Network which connects external parties only the people who are authorized in external parties can access it and why e-businesses are having these two additional networks.

Internet and extra net that is because the e-businesses may handle internal business processes and business processes that connects another business party if the interaction is happening with an employee of the organization it is using the intranet and if the interaction is happening with the external party for example suppliers it is using extranet and if the interaction is happening with a potential customer we have to use a public network and that is the internet now let’s look at the next feature.

E-commerce covers outward-facing processes that touch customers suppliers and external partners so these processors doesn’t include the activities which are happening inside the organization and what are the processes cover-up by the e-businesses so e-businesses cover up the production inventory management risk management finance and suchlike internal processes the next feature says ecommerce is narrower concept and restricted to buying and selling when compared to that e-business is a broader concept and that involves market survey supply chain and logistics management and using data mining so it includes several tasks when compared with the e-commerce.


Now the last feature we have listed down here says e-commerce just involves buying and selling of products and services and that is the part where the monetary transactions are involving that is the part where the profits are earned. And that’s why ecommerce is directly connected with the buying and selling and if you look at the e-business statement, it says e-business includes all kind of presale and post sale efforts so what are the presale and post sale activities purchasing raw materials things happening in the production and manufacturing process can be taken as presale activities and the delivery and responding to a customer inquiry for a purchased product can be taken as post sale activities so hope you got understanding why we are saying e-business and e-commerce are distinctively different two concepts in our comparison we said e-business have a much wider scope than the e-commerce and it is not just buying and selling of products and services but also communicating with the customers and collaborating with other business partners.


When showing the venn diagram of e-business and ecommerce I said ecommerce is just a component a required component of e-business so what are the other components so here it displays the few of other components collaboration, collaboration with all the stakeholders of the business.



SFA sales force automation BI – business intelligences CRM customer relationship management SCM supply chain management ERP – enterprise resource planning b2b business to business hope you go to understanding how much broader and how much complex it goes this is not the time to discuss about each and every component and we will do later.