What is E-Business (Electronic Business)?

E-business (electronic business) refers to the carrying out business activities online with the help of basic tools internet, intranet, and extranet. E-business also called online business which includes activities such as buying, selling, business deals, procurements, monetary transactions over the internet, customer relationship management, collaboration with suppliers, and other stakeholders.

In simple words, electronic business means the transactions of business activities that take place online with the help of the internet. It is the modern way of doing business, handling customers, fulfilling their expectations, and uplifting companies’ profits.

Electronic business has changed the way the traditional businesses used to be where physical presence is vital for buyers’ and sellers’ interactions and for the delivery of goods and services. But, in e-business physical presence is not required. Buying and selling, order processing, and buyers and sellers interactions are done electronically using telecommunication networks.

An E-business system uses a number of information technology-based business practices to enhance the relationship between business and customers. It includes changes in marketing communication, distribution systems, and business models.

What is E-Commerce (Electronic Commerce)?

The terms e-commerce and e-business are often used interchangeably but they differ. E-commerce means buying and selling goods and services online with the help of the internet and making monetary transactions at the same time. E-commerce remains at this.

But, e-business goes beyond just buying and selling over the internet and making payments as mentioned above it also includes managing customers, CRM, ERP, managing production control, processing payments, e-recruiting, e-collaboration, and many more.

In fact, electronic commerce is the part of the electronic business – it can be best convinced as electronic commerce is the subset of electronic business whereas e-business is the superset of e-commerce.

Important definitions of Electronic Business:

  • Philip Kotler – Electronic business is the general term for buying and selling process that is supported by electronic means.
  • International Fiscal Association – E-business means commercial transactions in which an order is placed electronically and goods and services are delivered in tangible or electronic form.
  • European Union Website – E-business is a general concept covering any form of business transactions or information exchange that is made by using information and communication technology.

Key points to remember about e-business:

  • Electronic business is the conducting of business on the Internet, not only buying and selling but also servicing customers and collaborating with business.
  • The processes and tools that allow an organization to use Internet-based technologies and infrastructure, both internally and externally, to conduct day-to-day business process operations.
  • Stands for electronic business and refers to any kind of sales, services, purchasing, or commerce on the Internet.
  • A new-tech jargon word is used more for marketing than for technical description. Most commonly it broadly refers to conducting business over the internet (email and web) by communicating and perhaps transacting (buying and selling) with customers, suppliers, and business partners.

Features/Characteristics of E-Business?

Thanks to the electronic business we do not have to go to visit shops and stores physically. The buying and selling, payments, delivering process, contracting, dealing, etc. are possible without a physical presence.

Some of the salient features/characteristics of the electronic business are mentioned below:

24×7 Service

It is electronic business/commerce that helped to achieve to give 24×7 service availability. It has automated the way business enterprises give services to customers. As such customers can use services at any time from anywhere.

Non-Cash Payments

In traditional commerce, the transactions – buying and selling of products were done in cash – in fact, this was the only way to do it. But today to do such transactions there is no need of carrying cash electronic business has enabled the use of credit cards, debit cards, smart cards, electronic fund transfers via the bank’s website, and other modes of electronic payment.

Improved Advertising/Marketing

E-commerce makes advertising and marketing activities of enterprises global reach. Better marketing management of goods and services is achieved. Online businesses can provide value to their clients and appeal to their requirements through individualized online experiences by using written articles, and visual, and video content.

Improved Sales

Using e-commerce, orders for the products can be generated anytime, anywhere without any human intervention. It gives a big boost to existing sales volumes.


E-commerce provides various ways to provide pre-sales and post-sales assistance to provide better services to customers. After buying or before buying customers can easily interact with the vendors about the products they want to buy or have bought from companies’ websites.

Inventory Management

E-commerce automates inventory management. Reports get generated instantly when required. Product inventory management becomes very efficient and easy to maintain.

Communication Improvement

E-commerce provides ways for faster, more efficient, and reliable communication with customers and partners. Since physical presence is not required as in traditional commerce customers and other stakeholders are welcome to make contact with the enterprise, and vendors from anywhere.