Difference Between Similar Terms and Objects

Difference Between e-business and e-commerce

business-Shopping_cart-pde-business vs e-commerce

Internet has made business interactions multi-faceted. People can now do business such as buy things, transact, and carry out business functions over the internet. Consumers and business owners/managers nowadays can now get and do what they want without leaving the confines of their rooms as long as they are connected to the internet.

The terms e-business and e-commerce are now often seen and used interchangeably. However, though related, they have different meanings. The “e” prefix means “electronic” which connotes any activity or transaction done without any physical exchanges or contact. The dealings are done electronically or digitally, a thing made possible with the leaps and bounds development of digital communications.

E-commerce implies business transactions over the internet where the parties involve are either selling or buying. The transactions conducted in e-commerce basically involve the transfer or handing over ownership and rights to products or services.

Technically, e-commerce is only a part of e-business because, by definition, e-business refers to all online business transactions including selling directly to consumers (e-commerce), dealing with manufacturers and suppliers, and conducting interactions with partners. Information exchange via centralized database is also done in e-commerce. Business functions are only limited to the companies’ technological resources.

E-commerce principally involves money exchanges in the transactions. In e-business, as it is broader, it is not limited to monetary transactions. All aspects in business are included like marketing, product design, supply management, etc.

E-business is more about making great products, brainstorming and giving quality service, planning about product exposure and executing it. Well, of course, e-commerce is an integral part of the e-business process but in strict terms, it is the activity of selling and buying.


1. E-business is broader in scope and e-commerce is just an aspect or a subset of it.

2. E-commerce only covers business transactions such as buying and selling of goods and services over the internet.

3. E-commerce essentially involves monetary trade while in e-business, money transactions are not necessary.

4. E-business involves marketing, product design, consumer service evaluation, and more.

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  1. Hi Ian,

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  6. Thank u it is very helpful for me

  7. The taste of your article is good. In one case, the extinction is very wide (eBusiness) We can also say that in this way. … “e-business is a term which can be used for any kind of business or commercial transaction that includes sharing information across the internet”, The other one is a specific service provider (eCommerce).

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