Electronic business (e-business) refers to the use of the Web, Internet, intranets, extranets

or some combination thereof to conduct business. E-business is similar to e-commerce, but

it goes beyond the simple buying and selling of products and services online. E-business
includes a much wider range of businesses processes, such as supply chain management,
electronic order processing and customer relationship management. E-business processes,
therefore, can help companies to operate more effectively and efficiently.

Online Business or e-business is a term which can be used for any kind of business or
commercial transaction that includes sharing information across the
internet. Commerce constitutes the exchange of products and services between businesses,
groups and individuals and can be seen as one of the essential activities of any business.
Electronic commerce focuses on the use of ICT to enable the external activities and relationships
of the business with individuals, groups and other businesses or e business refers to business
with help of internet i.e. doing business with the help of internet network.[1] The term "e-business"
was coined by IBM's marketing and Internet team in 1996

The Advantages of E-Business

by Kristie Lorette

Related Articles
 1Advantages & Disadvantages of E-Business
 2What Are the Benefits of E-Business Technology?
 3Importance of E-Business in the Hypermarket Industry
 4The Definition of eCommerce and E-Business

The Internet has been a door to a myriad new business opportunities. Business owners of e-businesses and
their customers find advantages in Internet transactions as opposed to brick-and-mortar operations. If
you’re thinking about starting an e-business or adding an online component to your existing business,
discover some of the advantages an e-business offers.
Cost-Effective Marketing

With an e-business, all of your marketing efforts end with one goal—to drive target traffic to your business
website. With one central place to send customers—your e-business website—it allows you to use many
online marketing tactics including email marketing, article marketing, social media networking and e-
newsletters. Most of these online marketing efforts are very low cost or free, so an e-business allows for
highly cost-effective marketing strategies.

Flexible Business Hours

E-business breaks down the time barriers that location-based businesses encounter, according to
eCommerce Education. Because the Internet is available 24 hours a day, seven days a week, your business
never closes. An e-business can literally be making money while you are fast asleep.

Eliminates Geographic Boundaries

An e-business also allows you to broaden your reach. An online business can reach customers in the four
corners of the Earth. As long as someone has an Internet connection, you may be able to reach and sell
your product or service to these visitors to your business website.

Reduces Transaction Cost

Running an online business reduces the cost per transaction because it takes less manpower to complete an
online transaction. Once you get your website up and running, the customer places the order online, which
removes the need for a salesperson. The customer payment goes through your online payment processing
software or system—again eliminating the need for a store clerk. Someone has to download the order and
ship it, which is probably you, but an e-business transaction has less burden of cost on the business,
making each transaction more cost effective than a brick-and-mortar business.

Low Overhead Costs

Running an e-business cut back or out most of the costs involved in running a physical location. E-
businesses have less expensive phone, rent and utility bills than businesses with physical locations. An e-
business also reduces the cost of paying employees because you do not need someone to “man” your
website during business hours. Some e-businesses do not require any additional space and can be run out
of your home, which you are already paying rent for or your mortgage payment. Even housing inventory
may not be an issue because you may be able to establish a drop-shipping situation, where your wholesaler
ships orders for you on behalf of your business.

Examples of E-Businesses
by Gregory Hamel
 Related Articles
 1The Definition of eCommerce and E-Business
 2The Advantages of E-Business
 3What Is the Difference Between E-Business & E-Commerce?
 4Advantages & Disadvantages of E-Business

The Internet is a powerful tool for communication and research, but it also provides businesses with a
means of connecting with consumers and generating income. Businesses that generate revenue primarily
using the Internet are sometimes called e-businesses. E-businesses can vary greatly in terms of how they
provide value to and earn income from consumers.
Online Retailers

Online retailers are e-businesses that use the Internet as a means to advertise and sell physical merchandise
of one kind or another. Examples of well-known online retailers include Amazon.com, Newegg.com and
Tigerdirect.com. Online retailers allow consumers to order merchandise and have goods shipped to them.
Online retailers have several advantages over traditional brick and mortar retail stores, including the ability
to sell goods at any time of the day, to remain open on holidays and to sell goods without incurring the cost
of renting retail store space.

Online Services

Some e-businesses generate revenue by providing consumers with useful services rather than selling
goods. Examples of online services include Ebay, which allows users to sell merchandise via online
auctions, PayPal, which enables users to send and receive money online and Orbitz and Expedia, which
assist users with making travel arrangements. Some e-businesses operate by providing content on a
subscription basis; for example, Neflix offers online streaming video for a monthly fee.

Online Advertising

Advertising is the primary source of revenue for many e-businesses. Website owners can sign up for
services that allow them to post advertisements on their websites and earn income based on how many
users view or click on advertisements. Websites that primarily deliver information and other content like
videos to users often earn income through online advertising. Examples of businesses that earn income
through online advertising include Google and Yahoo.

Considerations

Many businesses generate income from a variety of sources, both online and offline. For example, major
retailers like Best Buy, Target and Walmart sell goods at physical locations as well as on the Internet.
Similarly, many websites generate income using a variety of methods. For example, a popular blogger
might generate most of his revenue based on advertisements, but he might also earn some income by
selling T-shirts or other merchandise.

e-commerce is nothing but buying and selling of goods around the web. On
the contrary, e-business is a little different as it is not limited to, commercial
transactions, but it also provides other services. These are the two emerging
modes of doing business, which are gaining importance with the passage of
time.

Gone are the days, when you have to go to the market to buy a single item.
Nowadays you just have to place an order online, and that item will come to
you within few minutes. Online shopping is getting popular, just because of its
simplicity and convenience. This is possible only because of two electronic
networks, namely, as e-commerce and e-business.

e-commerce is concerned with the firm’s dealings with its customers, clients or
suppliers. Conversely, e-business refers to undertaking industry, trade, and
commerce, with the help of information technology and communication. The
article presented to you explains the difference between e-commerce and e-
business.

Content: e-commerce Vs e-business

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion

Comparison Chart
 BASIS FOR
E-COMMERCE E-BUSINESS
COMPARISON

Meaning Trading of merchandise, Running business using

over the internet is known as the internet is known as
E-commerce. E-business.

What is it? Subset Superset

Is it limited to Yes No
monetary
transactions?

What they carry out? Commercial transactions Business transactions

Approach Extroverted Ambiverted

Requires Website Website, CRM, ERP, etc.

Which network is Internet Internet, Intranet and

used? Extranet.

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:

 B2B – The process where buying and selling of goods and services
between businesses is known as Business to Business. Example:
Oracle, Alibaba, Qualcomm, etc.
  B2C – The process whereby the goods are sold by the business to
customer. Example: Intel, Dell etc.
 C2C – The commercial transaction between customer to
customer. Example: OLX, Quickr etc.
 C2B – The commercial transaction between customer to the business.

Definition of e-business

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:

 Pure-Play: The business which is having an electronic existence

only. Example: Hotels.com
 Brick and Click: The business model, in which the business exists
both in online i.e. electronic and offline i.e. physical mode.

Key Differences Between e-commerce and e-business

The points presented below are substantial so far as the difference between e-
commerce and e-business is concerned:

1. Buying and Selling of goods and services through the internet is known
as e-commerce. Unlike e-business, which is an electronic presence of
business, by which all the business activities are conducted through the
internet.
2. e-commerce is a major component of e-business.
3. e-commerce includes transactions which are related to money, but e-
business includes monetary as well as allied activities.
4. e-commerce has an extroverted approach that covers customers,
suppliers, distributors, etc. On the other hand, e-business has an
ambivert approach that covers internal as well as external processes.
5. e-commerce requires a website that can represent the business.
Conversely, e-business requires a website, Customer Relationship
 Management and Enterprise Resource Planning for running the
business over the internet.
6. e-commerce uses the internet to connect with the rest of the world. In
contrast to e-business, the internet, intranet and extranet are used for
connecting with the parties.

Conclusion

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.