Categories: Business

Electronic business and e-commerce: analysis of their differences

Digitalization has been a trend in recent years in trade and services. The number of companies that are operating exclusively offline is rapidly decreasing because online format of work has more opportunities to gather a target audience, make the brand famous, and increase sales. Custom ecommerce development services are also becoming popular. Business owners do not want to waste their time and money to study all new trends of promotion and marketing, so they prefer to give this task to professionals in the sphere. But remember, that you must understand how digital commerce works and how it differs from digital business. This knowledge will help you to evaluate the work of digital agencies and be sure in the success of your business. 

What does the e-commerce term include?

«Electronic commerce» refers to a type of trade whose main properties are purchases via the Internet. It does not require direct contact to exchange goods and money.

Vivid examples of digital commerce are the following:

  • services with which you can book;
  • virtual trading platforms;
  • online stores.

The exclusive requirement to qualify for digital commerce is to complete an entire online buying and selling cycle. And you don’t need to have a website for this. Trading is carried out through different tools: social networks, various virtual trading platforms, and much more.

E-business concept

Doing business using the potential of the Internet is called e-business. This term has fairly broad boundaries, so it includes many types, including e-commerce. A digital business does not need online sales; its purpose can be solely the presentation of goods, promotion, or interaction with customers after a purchase or order.

Let’s look at the illustrations of such a business model:

  • various services for scheduling clients or, for example, patients with a doctor;
  • virtual directories;
  • tools for running and managing multiple types of businesses.

The main feature of digital business is complete digitalization, where all processes are carried out, which generally ensures an increase in the efficiency and capabilities of the business and its profits.

What are the key differences?

Now, itt is clear that these two terms are not the same thing, so it is worth understanding the main differences. There are several of them at once:

  • type of business model. For e-business, there are four options, in which the main objects in different variations are the consumer and the business. E-commerce, on the other hand, provides utterly different business models: shopping in an online store, managing relationships with clients, products and services;
  • the scope of processes that are included in each of the concepts. For e-commerce, this is only the sale of goods or the provision of services. E-business also involves the exchange of information, conducting marketing research, and distribution of products, including their delivery;
  • goal since both concepts have different results. For digital commerce, the priority is purchasing by the consumer, and for e-business, it is vital to track all the processes that take place even before the purchase.

The concepts should be distinct, although they have several standard features. It is essential for the proper digitalization of the business.


Ethan is the founder, owner, and CEO of EntrepreneursBreak, a leading online resource for entrepreneurs and small business owners. With over a decade of experience in business and entrepreneurship, Ethan is passionate about helping others achieve their goals and reach their full potential.

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