Since the unfortunate emergence of the 'Coronavirus' or 'Covid-19' pandemic and the ensuing global lockdown, online shopping has grown in popularity. As a result, most people must conduct their shopping or business online using computers or smartphones with an Internet connection no matter where they are. Thankfully, two popular networks known as E-Commerce and E-Business had also made this possible.
Most people believe that these two terms mean the same thing. They are not, but they are related to one another.
E-Commerce is defined as
E-Commerce is an acronym that stands for "Electronic 'Commerce," and it refers to the process of selling and purchasing products through an online store. In comparison to a "bricks-and-mortar" store, there is no face-to-face interaction here between the supplier and the consumer for the transaction to take place.
The Following are Examples of E-Commerce Models:
1. Business to Business (B2B) refers to any type of electronic product or service transaction that occurs between two companies.
2. Business to Consumer (B2C) refers to any type of electronic product or service transaction that occurs between the seller and the customer. It thus is perhaps the most common type of E-Commerce.
This type of E-Commerce is generally more dynamic and simple to carry out. Due to the lockdown, the establishment of many online stores has resulted in a significant increase in B2C over the last few months. Over the Internet, you can now easily find almost any type of online store and in any niche you want. They sell physical products such as books, gadgets, clothing, tools, and accessories, as well as digital products such as e-books, information, and online courses.
Many people prefer online shopping to physical shopping because it is more convenient, and the prices are usually lower, even with shipping costs. Another advantage is that most online stores will offer free shipping on orders over a certain amount.
3. Customer to Customer (C2C)
This refers to any electronic transaction of products or services between two customers. In general, this can be accomplished with the assistance of a third party, such as Amazon, eBay, or Etsy as an online marketplace for selling and buying.
4. Business to Consumer (C2B)
Consumer to business is a type of business model in which a customer or user creates a product or provides a service that a business or company uses to supplement its business setup, improve its business image, or gain a competitive advantage.
For example, websites such as Fiverr, Upwork, and others where freelancers offer services such as website or logo creation, and any business can use their services if they so desire.
5. Business to Administration (B2A) refers to any type of transaction that takes place between businesses and governments via the Internet. It encompasses a wide range of services, including fiscal, social security, employment, legal documents, and so on.
6. Consumer to Administration (C2A) This refers to any type of transaction between a consumer and the government. For instance, taxes, education, health care, social security, and so on.
E-Business Definition
E-Business is an acronym that stands for "Electronic Business," and it conducts its operations through the use of the Internet, Extranet, Intranet, and website. In this regard, E-Business is similar to E-Commerce, but it entails more than just selling and purchasing goods and services online.
E-Business, in general, refers to a broader range of business processes, such as electronic ordering and processing, customer relationship management, supply chain management, and so on. In general, E-Commerce can be considered a subset of E-Business.
What Is the Difference Between E-Commerce and E-Business?
E-Commerce refers to the process of selling and purchasing products over the Internet. E-Business, on the other hand, is not limited to the selling and buying processes. E-Business is defined as any business conducted over the Internet. For example, consider the information and communication technologies used to improve one's business. E-Commerce, in essence, becomes a subset of E-Business.
Any E-Business does not need to be physically present in the business world. E-Commerce is defined as a company that has an office in addition to a physical presence and conducts its business activities over the Internet.
E-Commerce refers to any type of business transaction involving money, whereas E-Business includes both money and supporting activities.
To conduct business globally, E-Commerce requires the use of the Internet, whereas E-Business can use more than the Internet. For example, the use of the Intranet and Extranet to connect with business partners.
Advantages of E-Commerce and E-Business
E-Commerce and E-Business have both transformed the way people shop. Customers would have most likely taken advantage of some of their benefits. Similarly, business owners have benefited in the following ways:
1. Cost-cutting and time-saving measures for their company
With a retail outlet, you will have to pay some type of overhead cost on a monthly basis, such as rent, utility bills, phone bills, staff salaries, and so on.
When you take your business online, you can reduce or even eliminate some of these expenses. Converting your company to E-Business can also help to simplify certain tasks. For example, emailing bulk discount coupons is far more convenient than printing hundreds of coupons and mailing them.
2. E-commerce is available 24 hours a day, seven days a week.
Because of the Internet, any E-Business can literally operate 24 hours a day, seven days a week.
3. Removes the location constraint
The Internet can also cross all time zones and connect people all over the world. Customers will be constrained by the proximity of a retail outlet to where they live as well as the hours of operation.
Furthermore, with E-Commerce, your online store is accessible via smartphones and other mobile devices. This means that people can buy your products while on the go from anywhere.
4. It is simple to track business growth and goals.
There are now numerous tools and amazon like app available to help you easily track your business's growth and goals, as well as understand your customers' purchasing behaviors. For example, the most popular products in the last few months, the number of returning customers, the number of cart abandonment, and so on.
It will be difficult to track and generate such data in a retail outlet unless you perform an additional record-keeping task.
5. Improve customer service.
The faster you respond to your customers' questions, the better for your business. Having an online chat feature on your company's website makes it much easier for your E-Business to meet that need.
You, as the business owner, and your customers can both benefit from E-Commerce and E-Business.
As food for thought, E-Commerce is a big part of E-Business, and E-Commerce is E-Business, but E-Business is not always E-Commerce.