The common mistake of companies starting out in e-commerce is to confuse e-commerce and e-business. Both are complementary, but respond to different realities and do not necessarily relate to the same problem. It is therefore important to understand what these notions refer to and to analyze how they relate to 21st century business policy.
What is the current panorama of online commerce? In the medium term, we are likely to experience an expansion of e-business and e-commerce. The majority of companies must be on the Internet to increase sales. If we add to this that the Internet still has a long way to go to get in touch with some emerging economies, there is a strong growth potential. Cases like India, Brazil or South Africa are significant because there are still large segments of the population that do not have access to networks.Moreover, the notion of ‘contact’ is no longer indispensable today.
There are other modes of communication. Tools such as forums, Go to Meeting or Skype, now promote connections between people around the world. Although different, they allow for flexible and fast interactions. This is why this business model will rapidly increase for reasons of profitability. Saving on costs is indeed a priority if we want to remain competitive.What is the difference between e-business and e-commerce?
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E-business and e-commerce are clearly different concepts. The concept of e-business, or internet commerce, refers to the lucrative contacts and transactions made by the network. The concept of e-commerce refers to the sale of goods or services to the end customer. The main idea is that e-commerce is necessarily a form of e-business, but that e-business does not necessarily involve e-commerce. We believe that all businesses on the Internet are connected with online retail outlets. Nothing is further from reality.
Indeed, e-business aims to integrate systems, with suppliers, buyers and other agents, in order to optimize processes. This is why corporate training is primarily focused on e-business.As for e-commerce, it is particularly useful for the realization of the deed of sale. It is also commonly used by SMEs. We must not forget that e-commerce is often complementary to a main activity based on customer relations.
That’s the point of this concept. Why do we tend to confuse these two terms?The confusion between e-commerce and e-business comes from the points of contact between these two concepts. If you have an online store, you are doing both e-commerce and e-business. On the other hand, if you limit yourself to managing your stocks, you are doing e-business. This is why it is sometimes difficult to distinguish between one and the other. What is certain is that for several years, differentiation has taken place between these two concepts.It should not be forgotten that these two terms have long been considered synonymous.
Indeed, many people doing e-commerce tended to think they were also doing e-business. There is also a tendency to limit the scope of virtual commerce practices to the purchase and sale of goods or services. The distinction between these two concepts is becoming increasingly clear, particularly in the business world because of the importance of know-how that does not directly concern buying and selling.
