Do you know the difference between e-commerce and e-commerce? Have you been using these terms synonymously and wondering if you are really using them correctly? To better understand these two terms, let’s define each of them separately.

Electronic commerce or electronic commerce covers business activities that are carried out over the Internet or other electronic systems. In e-commerce, products and services are bought and sold over the Internet and transactions are completed automatically. E-commerce websites have the ability to accept orders online through a checkout feature provided by e-commerce or shopping cart software. E-commerce relies on the use of technologies such as electronic funds transfer, online marketing, supply chain management, data collection systems, inventory management systems, and electronic data interchange.

Ecommerce software solutions use all the technologies mentioned above to create fully functional ecommerce websites. E-commerce websites are also called virtual storefronts or virtual shopping malls, because they are known to be product catalogs. Stores that sell products rather than services may offer both tangible and intangible products, such as digital downloads of music, software, or books. To put this in simple terms, e-commerce is online commerce. All business transactions are carried out exclusively through the Internet.

E-commerce or e-commerce, on the other hand, is considered the integration of e-commerce activities into your company’s business flow. For example, if you run a business and decide to start accepting purchases made online, then your business has gone from traditional business to e-commerce. When e-commerce activities become an integral part of your overall business, that’s when you can call your business an e-business. Companies that integrate standard activities on their websites are called e-business because their website becomes a sales tool to generate even more profits.

An e-commerce is more difficult to maintain because merchants have to manage both the website and its other internal business functions, such as production of goods or services, product development, finance, human resources, etc. Most of the traditional companies move to electronic companies because they can attract more customers through the World Wide Web. It also makes your business look more professional and legitimate because customers can easily contact you through the website or search your business profile to learn more about the business.

The terms e-business and e-commerce are generally used interchangeably, but they must be used correctly so that people know the true nature of each. Now that you have a good idea of ​​what sets the two apart, in which direction do you want your business to move? Include it in your business plan so you have the right goal to aim for.