Definition of e-commerce
e-commerce is an abbreviation used for electronic commerce. It is the process through which the buying, selling, dealing, ordering and paying for the goods and services are done over the internet is known as e-commerce. In this type of online commercial transaction, the seller can communicate with the buyer without having a face to face interaction.
Some examples of real world application of e-commerce are online banking, online shopping, online ticket booking, social networking, etc.
The basic requirement of e-commerce is a website. The marketing, advertising, selling and conducting transaction are done with the help of internet. Any monetary transaction, which is done with the help of electronic media is e-commerce. The following are the types of e-commerce:
Electronic Business, shortly known as e-business, is the online presence of business. It can also be defined as the business which is done with the help of internet or electronic data interchange i.e. is known as E-business. E-commerce is one of the important components of e-business, but it is not an essential part.
e-business is not confined to buying and selling of goods only, but it includes other activities that also form part of business like providing services to the customers, communicating with employees, client or business partners can contact the company in case if they want to have a word with the company, or they have any issue regarding the services, etc. All the basic business operations are done using electronic media. There are two types of e-business, which are:
The points presented below are substantial so far as the difference between e-commerce and e-business is concerned:
|BASIS FOR COMPARISON||E-COMMERCE||E-BUSINESS|
|Meaning||Trading of merchandise, over the internet is known as E-commerce.||Running business using the internet is known as E-business.|
|What is it?||Subset||Superset|
|Is it limited to monetary transactions?||Yes||No|
|What they carry out?||Commercial transactions||Business transactions|
|Requires||Website||Website, CRM, ERP, etc.|
|Which network is used?||Internet||Internet, Intranet and Extranet.|
e-commerce is the major part of e-business. It can also be said that e-commerce is e-business websites, but e-business is not necessarily e-commerce. The former is just the online presence of the conventional commerce and the same is the case with the latter.
At present most of the companies are doing e-business just to capture the maximum part of the market. Some e-commerce websites have emerged since last few years who are vanishing the market traditional commercial business, like Flipkart, Amazon, eBay, etc.