Although the terms e-commerce and e-business are often used
interchangeably, there are differences. E-commerce is the buying and
selling of goods and services on the Internet or other computer network.
Any brick and mortar store can become an e-commerce business by adding a
virtual storefront with an online catalog. In most cases, e-business
refers exclusively to Internet businesses, but it may also refer to any
business that uses Internet technology to improve productivity and
profitability.
Facts
Business transactions that involve the exchange of money are
covered by the term e-commerce. E-business includes all aspects of
running a business that sells goods and services, including marketing,
earning and retaining customers, procurement, developing business
partners and customer education. In order to be successful, e-commerce
and e-businesses must have quality storefronts that are simple to
navigate and peruse, with accurate and thorough catalog information.
E-business became an extension of e-commerce to encompass all aspects of
businesses that function online. E-business involves e-commerce, but
e-commerce does not cover all aspects of e-business.
History
E-commerce, in its initial form of commercial transactions, came
about in the late 1970s. At this point, businesses began to send
commercial documentation electronically to other businesses. The general
public was introduced to the Internet in 1994, but it took an
additional four years to create the security protocols necessary for a
ready Internet connection. By 2000, businesses in America and western
Europe were presenting their goods and services online. This is when
e-commerce became online buying and selling, and e-business was born.
Amazon and eBay were two of the first e-businesses to allow electronic
transactions.
Related Reading: Pros & Cons of Starting an eCommerce Business
Advantages to Vendors
E-businesses have distinct advantages over brick and mortar
stores. First, they can be found with search engines without the use of
pricey advertising campaigns. Beyond this, e-business allows vendors to
track purchases and preferences of customers, leading to marketing
catered to each individual. Advantages for e-commerce, which also extend
to e-business, are great monetary savings (because of fewer employees
and low overhead) and the ability to reach consumers across the globe.
Advantages to Consumers
Consumers can access e-commerce and e-businesses at any time of
the day or night, from their workplace or in their pajamas. Consumers
can search through countless products and services using online
databases. Prices are quickly compared online to find the business that
offers the best products at the best prices. Consumers are quickly
exposed to e-business because it uses more targeted marketing and offers
more in-depth education compared to traditional businesses.
Features
E-commerce and e-businesses offer online storefronts, complete
with virtual shopping carts and wish lists that can be emailed to
friends and family. Along with this, e-businesses often have an
electronic chat function that is used for technical and customer
support. Virtual computer systems allow businesses to remotely access
their customers’ computers to correct problems or navigate software and
hardware specifications. E-business extends from these features to work
with internal processes like product development, risk management,
production and inventory management, among other things.
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