E-business and e-commerce are terms used to refer to a business that uses the Internet in an effort to achieve more profitability and success. Most people assume they are the exact same things, however there are slight differences that makes it a little easier to differentiate between the two. The difference is not between goods and services. Check out the meanings of both e-business and e-commerce and decide which one represents your business.
At present, many traditional businesses have transitioned themselves to become e-businesses so that they can expand their business scope in terms of expanding their market. Lets use retail clothing companies as an example. The way that most of them have transitioned to e-businesses is by offering customers the option of buying clothing either online through their ecommerce website or going to their physical store to try the clothing on before making a purchase. Some businesses use the Internet more for better branding themselves than actually selling products. For instance companies such as Coca Cola do not necessarily need to sell their products over the Internet, yet they make their presence known on major social media sites such as YouTube and Facebook.
E-commerce, on the other hand, specifically uses the Internet as a platform to buy and sell products or services. When most people think of e-commerce, their first thought is a business that exclusively exists on the Internet such as Amazon. These types of businesses have no retail locations and only focus on what to sell online. All the transactions are made online, and customers only have the option to purchase from the company through their e-commerce website. The only physical locations needed will be warehouses for ecommerce fulfillment of orders. For small retail businesses that do not have that kind of scale, their goods can just be stored in the home or office. Whether you have a retail establishment and want to take advantage of opportunities online or you want to base your entire business on the Internet, it’s important to completely understand both e-business and e-commerce best practices.