E-Commerce VS. E-Business?

Electronic commerce (also known as e-commerce) is often easily confused with electronic business (or e-business). However, there are vast differences between these two concepts. Electronic commerce is a business to business (B2B) initiative aimed at communicating business transaction documents on a real time or near real time basis between known trading partners, such as suppliers, customers and increasingly, between a suppliers’ supplier or a customers’ customer. Use of electronic representations of business transaction documents can reduce processing and handling, thereby reducing processing costs, data entry errors and cycle times. A web site is largely unnecessary in the electronic commerce environment as electronic commerce is based on background, system to system communication and document processing.

Electronic business (also known as e-business or e-biz) represents the Internet based marketing channel that has emerged, first slowly, then explosively, since the mid 1990’s. Electronic business is aimed at selling products or services via the Internet. Electronic business initiatives often provide both pre-sales and post-sales support, directly to customers on a “self-service” basis. Both business to business (B2B) and business to consumer (B2C) examples of electronic business models have emerged. In many instances, direct sales of end products to consumers are supported through electronic business, largely through electronic catalogues, shopping carts and online credit card payment mechanisms. Unlike electronic commerce, an interactive web site is fundamental in conducting any form of electronic business. Note that there are other applications of electronic business, such as to administratively support other organizational stakeholders, including employee, shareholder and supplier audiences.

VIRADIX provides complete support for both electronic commerce and electronic business initiatives.