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What is the difference between e-business and e-commerce

Nestor Bills by Nestor Bills
July 14, 2020
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Do you know the difference between e-business and e-commerce? Do you use these terms synonymously and wonder if you really use it correctly? To have a better understanding of these two terms, let’s define each separately.

E-commerce or electronic trading includes business activities carried out through the internet or other electronic systems. In e-commerce, products and services are purchased and sold via the internet and transactions are complete automatically. The e-commerce website has the ability to accept orders online through the checkout feature provided by e-commerce software or shopping basket. E-commerce is based on the use of technology such as electronic fund transfers, online marketing, supply chain management, data collection systems, inventory management systems, and electronic data exchange.

E-commerce software solutions use all the technology mentioned earlier to create a fully functional e-commerce website. The e-commerce website is also called a virtual storefront or virtual mall, because they are known as product catalogs. Products that sell products that are contrary to services can offer real and intangible products such as digital music downloads, software or books. To enter this into simple terms, e-commerce is online trading. All business transactions are carried out exclusively through the internet.

E-business or electronic business, on the other hand, is considered an integration of e-commerce activities into the flow of your company’s business. For example, you have a business, and you decide to start receiving purchases made online, then your company has switched from becoming a traditional business for e-business. When e-commerce activities become an integral part of your business as a whole, which is when you can contact your e-business business. Businesses that integrate standard activities on their websites are called e-business because their website becomes a sales tool to produce more profits.

E-business is more difficult to maintain because traders must manage both websites and other internal business functions such as production of goods or services, product development, finance, human resources, etc. Most traditional business transitions to e-business because they can capture more customers through the World Wide Web. It also makes their company more handsome and legitimate because customers can easily contact them through the website or look for their company’s profile to learn more about business.

The term e-business and e-commerce are usually used alternately, but must be used correctly so that people will know the true nature of each. Now you have a great idea about what distinguishes the two, where do you want your business to move? Enter into your business plan so you have the right purpose for aiming.

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