E commerce has changed a lot of things in today’s world. Our lives have become much faster and a lot of convenience is added to our shopping activities. If you talk about e commerce, everyone understands what you are really talking about. On the other hand e business is not a term that has been widely recognized and often jumbled up with e commerce as well. E-commerce and e-business are two totally different terms. Each term has its own scope of covering up the e related issues and we should be careful not to use one in place of the other.

The basic difference to start with is that ecommerce is largely focused on the external part of the business processes. These external processes fall into a lot of categories. Examples of ecommerce activities include dealings with customers, suppliers, and other external stake holders that are involved in doing business with a company. On the other hand e-business is a totally different ball game. We can say that e-business is much larger in scope than that of e-commerce. E-commerce is usually based on the external structure of business models. It deals with “how” of creating value into the goods and services that the customer will be buying. It focuses on the commerce side that has nothing to do with what happens inside the organization. E-business on the other hand not only looks into the things that are looked after externally but it also tries to improve the processes carried out inside an organization.

These processes were though already carried out. E-business however looks at how these processes could be improved through the use of technology to increase capacity, reduce costs, boost up efficiency, and introduce best practices into the business operations. E-commerce is therefore one aspect of the whole scenario of electronic business while e-business is the whole picture formed to carry out each and every process involved in doing the business through technology. E-commerce helps us improve result out of the electronically generated commerce through the processes involved. E-business not only looks at that but it also ensures the backend processes responsible for the success of e-commerce are always improved and upgraded whenever desired.