While the two might sound like one and the same, there are some rather significant differences between ecommerce and ebusiness. Still, it’s perfectly understandable how the two could be confused.

One of them is inextricably linked to the other. Ecommerce could not exist without the support of ebusiness. So, with all of that said; what is the difference between ecommerce and ebusiness?

Fortunately, isn’t as complicated as it might seem.

What Is Ecommerce?

Connoisseurs of fine brandies will tell anyone who’ll listen all cognac is brandy, but not all brandy is cognac. Similarly, all ecommerce is ebusiness, but ebusiness is not always ecommerce.

Simply put, the buying and selling of products and services over the internet constitute ecommerce. To illustrate this, consider the following examples of ecommerceas listed on SmallBusiness.Chron.com.

• Online Retailers: Sellers of physical goods such as Amazon and every traditional brick-and-mortar store with a website.
• Digital Goods: Merchants offering virtual counterparts of real-world items such as ebooks, software, game additions and other virtual goods.
• Online Services: Freelancers of all types, educators, therapists, coaches and even physical fitness trainers whose services can be accessed via the internet.

As you will see below, while all of the above functions require the internet to be conducted, ebusiness does not.

However, it does support them.

What Is Ebusiness?

Techopedia defines business as the use of the web, internet, intranets, extranets or some combination thereof to conduct business. Supply chain management, electronic order processing and customer relationship management are some of the most common examples of ebusiness processes.

Basically, ebusiness helps companies operate more effectively and efficiently.

The Balance cites the following examples of ebusiness:

• Email marketing to existing and/or prospective customers is an ebusiness activity, as it electronically conducts a business process—in this case, marketing.
• An online system that tracks inventory and triggers alerts at specific levels is also ebusiness. Inventory management is a business process, and when facilitated electronically, it too becomes part of ebusiness.
• A content management system tasked with overseeing the workflow between a content developer, editor, manager and publisher is another example of an ebusiness. Without an electronic workflow, the process would require the physical movement of paper files. Electronically enabling these functions makes it ebusiness.
• Online tools for human resources ranging from job listings and application processes to collecting and maintaining relative data about employees constitutes ebusiness.

In other words, ebusiness examples include activities such as online customer support, email marketing and supply chain management. This can include inventory management, product development, risk management and finance.

As stated previously, it’s important to note that while ecommerce is strictly internet-based, these processes can be conducted over the internet, an intranet, or an extranet.

Ebusiness Supports Ecommerce

Thus, ecommerce is dependent upon ebusiness, but not vice versa.

In fact, ecommerce as we know it would be practically impossible without the underpinnings ebusiness processes provide. After all, most of the key aspects of ecommerce, such as transmitting marketing emails to customers, payment gateways, order confirmations and shipping confirmations are wholly dependent upon ebusiness to work.

So, there you have it;  the difference between ecommerce and ebusiness.

When you think about it, it really is easy to understand how someone could get the two confused. Ecommerce most assuredly would not be feasible in its current form without ebusiness—the two are connected. However, ecommerce is just one of the many industries ebusiness supports.