e-Business versus e-Commerce

What is the difference or overlap between e-commerce and e-business ?

In previous part of this module we have been vague about the boundaries of what is e-commerce. Our discussion and interpretation was quite broad.  Many have  this broader interpretation on the scope of e-commerce.  There is some clarification required about the difference between  e-commerce and e-business in order to set the boundaries. So as of now, we will be more strict and limit the scope of e-commerce. Let’s explain:

Below venn-diagram provides an accurate definition.


The best point of view is to see e-commerce as a subset of e-business.


E-commerce ↔ E-business

  • E-business is, simply put, all what a business with a physical site could do, but then using a data network such as the internet. This can go from co-operation between divisions till true trade between businesses.
  • If a financial transaction takes place during this process, then we will call this e-commerce.