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E-Commerce and E-Business – The Differences & Benefits


E-commerce stands for electronic commerce, which happens when a customer buys a product or a service on the internet. Years back, it would have sounded odd, but here we are buying vegetables and meat online. E-commerce has evolved a lot over the years. You can buy anything and everything on the internet now, even a house or a pet.

E-commerce has changed the way people shop. Online shopping has become the new normal. You crave a midnight snack or dessert, take your phone, open your favorite food delivery app, choose your favorite restaurant, order food, pay money, and wait for the door-step delivery.

E-commerce has made things easy and smart. You can have your daily essential with a few clicks. You don’t have to step out in the sun or rain either. The pandemic was a good time for e-commerce. Their growth was exponential in the past year.

Types of E-commerce Business Models

The three prominent roles in E-commerce are played by, the business, the administration, and the consumers. The combination of these participants make different e-commerce business models:

1. Business to Business (B2B)

As the name suggests here, the selling and buying happen between two businesses. It occurs mainly between the wholesaler and the retailer. Both these parties are involved in the business side. In this model, the orders are of very high value, and there is a scope of recurring purchases.

2. Business to Consumer (B2C)

It is this business model that comes into everyone’s mind when people hear e-commerce. Thanks to the e-commerce giant Amazon, also the best example of this model. So here, the selling is done by business, and customers do the buying.

3. Consumer to Consumer (C2C)

Here the seller and the buyer are both consumers. Take the example of eBay; here, the website allows customers to sell their products to other customers. It is yet another e-commerce business model 

4. Consumer to Business (C2B)

It is a reverse scenario where the consumer sells to the business. It is the kind of empowerment that e-commerce brought. Here the customer can offer their product or service in a portal, and the companies can bid for it. The highest bidder gets the offer.

5. Business to Administration (B2A)

Here administration means the Government entities or public administration. They need c-commerce services in many ways. It can be document management or human resource. 

6. Consumer to Administration (C2A)

It happens rarely, but still, sometimes the Government takes service from individuals. It can be to file tax returns or any other services.


E-Business, also known as electronic business, happens when the internet, intranet, or an extranet is used to conduct business. It is similar to e-commerce, but it is more than that. E-commerce, as we have seen, is the act of buying and selling products or services online. E-business, on the other hand, involves a broader range of activities. 

E-business can include supply chain management, customer relationship management, and so on. E-commerce is also a part of e-business. As we see, e-business is not just limited to money transactions; it involves business transactions. 

Types of E-business Business Models

1. Pure-Play

It is the kind of business that exists only online. There is no physical store, only an electronic presence. It is highly used for small-scale businesses as they don’t require spending money on infrastructure and other rents. Even the number of employees needed will be lesser here.

2. Brick and Click

It is a kind of business that exists online as well as offline. That is, this model businesses have a physical store and the online version available. Most of the big brands now have this service. They offer their products and services both online and in brick-and-mortar stores.

The Critical Differences Between E-Commerce and E-Business

E-Commerce and E-Business have some similarities and differences as well. The e-business includes e-commerce, but it is a larger platform, and e-commerce is only a part. Let us look into five of the main differences between e-commerce and e-business.

  1. E-commerce is limited to buying and selling products or services online. At the same time, all the business activities that happen online is termed e-business. Information and computing technologies is an example of e-business. 
  1. While e-commerce is limited to monetary transactions, e-business does more than that. E-commerce is the subset of e-business. But e-commerce is the central part of e-business. 
  1. E-commerce can take place only with the help of the internet, while for e-business, you can take advantage of intranet, extranet to connect to the required parties.
  1. E-commerce follows an extrovert approach while dealing with customers, suppliers, or other people. At the same time, e-business follows an ambivert approach in external and external affairs.
  1. E-business requires a website, human relationship management, supply chain management, enterprise resource planning to run the business. E-commerce requires only a website or maybe a mobile application to run the business.

Advantage of Having E-commerce & E-business

The advent of e-commerce and e-business has made a significant impact in the commercial sector. It has made people go digital and cashless. You can have daily vegetables and your favorite food on your door-step with the help of e-commerce. Let us look into some of the benefits of these:

Less time consuming and more cost-effective

A physical store means the owner has to pay for the rent and the rest of the amenities. An online store does not necessarily require a physical store. So you can reduce the cost of your products. The cost to develop an e-commerce app is lesser compared to having a store. Online shopping is less time consuming, as you don’t have to get out of your house or office. You can purchase it during your work break or while having coffee.

Reach the customer faster

With e-commerce and e-business, you can reach customers quickly and also vice-versa. With e-mail and chatbots’ help, the customers can easily share the company’s feedback and complaints. It will also help in improving the service.

Flexible business hours

As the internet is available 24/7, you don’t have time constraints. The business can make money even when you are sleeping. You no longer have to spend sleepless nights in your shop.

No location restrictions

Another highlight of e-commerce or e-business is its availability everywhere. Your service is not restricted to any one area. You can easily have access to the whole world. So there are no location constraints; you can ship the products to anywhere in the world.

In a Nutshell

In the blog, we have seen the critical differences between e-commerce and e-business. No matter what, a mobile app will not harm both of them; creating a mobile app will help both grow. There are only slight differences between both. E-business acts as the superset of e-commerce. The former has a more extensive playground, while e-commerce is limited to online selling and buying.

E-commerce became a lifeline to many people in the past year. People started purchasing daily essentials over the internet as going out was not a wise choice. So, the last year has witnessed a massive spike in demand for e-commerce. Online shopping became the new normal. 

The twenty-first century saw revolutionary changes in many sectors. E-business is one such thing. Who would have thought sitting in a garage, a human could run business all around the world. The electronic platform will give us even more incredible opportunities in the future.

Nihal PS is a certified SEO strategist who is certified from Semrush, Moz, Yandex and Google. He works as a digital marketer at Mindster which is a mobile app development company and UI UX Design agency in India. He has the credibility of bringing up rankings of websites with his continuous efforts and tactics.

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