What's the Difference Between Ecommerce and E-Business?

Ecommerce and e-business sound the same, but they're defined differently. Get the facts about what these terms actually mean - and what they mean for you.

As ecommerce and e-business exponentially increase, these two similar terms are commonly confused. Many companies conduct both types of activities, which can make it even more difficult to separate these functions from one another. 

In this detailed guide, we provide the necessary info so you'll know how to use these words correctly to describe your online business endeavor.


What Is Ecommerce?

If you're buying and selling products and services online, you're engaged in ecommerce. This word encompasses all parts of an online transaction, from the shopping cart system to checkout, payment, and delivery. 

Your business might have virtual systems that help your teams do their work each day, but that's not considered ecommerce unless it involves purchases and sales of specific items.

What Is an E-business?

E-business is a broad term used to cover any and all online business operations, including ecommerce transactions as well as other virtual systems and procedures. An e-business might not sell products online, but it still falls into this category if it relies on connected tech to function. 

Let's return to the example above. If you don't sell products or services online but you use virtual software to operate your enterprise, you own an e-business. That holds true even if your company has a physical location. 

What Are the Main Differences Between Ecommerce and E-Business?

Consider these key differences to distinguish between e-business and ecommerce:

  • E-business is a broad concept covering many different types of online transactions, while ecommerce refers only to a small subset of the e-business industry.
  • Ecommerce mostly consists of business-to-consumer (B2C) transactions, while business-to-business (B2B) transactions usually fall into the e-business category.
  • Ecommerce companies usually operate completely online, while e-business often represents only the connected component of a company's operations.
  • Ecommerce uses only the internet while e-business can take place online or on a closed company extranet or intranet

In general, buying and selling online equals ecommerce while any other company operations conducted online are considered e-business.

What's the Best Way for an Ecommerce Business to Accept Payments? 

To engage in ecommerce, you need a way to accept customer credit cards and other forms of payment. 

Pay.com gives you everything you need to get started, including an easy onboarding process and an affordable, transparent flat-fee pay structure. You can track all your transactions and stay up to speed with our easy-to-use Pay Dashboard.

Pay.com provides the highest level of industry-standard security with our Level 1 PCI DSS compliance. We use advanced tech like tokenization to keep your customers and your company safe from online fraud.

If you own a brand-new business, you can start taking payments before you even set up your website. We offer multiple ways to take credit cards, debit cards and other selected payment methods. In addition to customized online checkout pages, you can send secure Pay Links that take your customers right to their invoices so they can easily complete the transaction. 

Click here to get started with Pay.com now!

The Bottom Line 

In short, an e-business is any company that operates partially online, whether that means VPNs for remote workers, cloud-based software subscriptions, or any other virtual function that helps you get the job done. Ecommerce narrows the field of e-business as a subset that involves only online purchases and sales.

Whether you're already engaged in ecommerce or planning to shift to this space, Pay.com puts the power of online payments in your hands. Our full-service offerings give you a safe, secure way to accept digital wallets, credit cards, debit cards, and other preferred payment methods.

Click here to create your Pay.com account now.


How can an ecommerce business accept credit card payments?

You can accept credit card payments for online transactions by partnering with Pay.com. We support multiple methods of payment, all including the highest level of industry-standard security compliance. You can even create a branded checkout page that instills customer trust by fitting right into the rest of your online presence.

What are some examples of ecommerce?

Ecommerce operations involve selling or buying products or services online. Examples of ecommerce include purchasing a dress online for an upcoming event, ordering take-out from your favorite local restaurant through a delivery app, and signing up for subscriptions like software-as-a-service (SaaS), streaming services, and online publications.

What are some examples of e-business?

Anything your company does online to advance your goals counts as e-business, including e-commerce transactions. Other examples of e-business include sending email blasts to publicize your services, using a content management system to publish blogs and articles, and connecting with customers on social media.

How can I accept payments on my website?

Pay.com makes it possible to accept credit cards, debit cards, and many other payment methods on your ecommerce website. You can set up a checkout page that connects directly with our services and even customize the appearance with your branding so it fits seamlessly into your existing site. 

It's also fast – our onboarding process requires just a few simple steps. Click here to get started now!

Meet the author
Andrea Miller
Andrea Miller has been a writer and editor for more than two decades. Specializing in business and finance, she has written for some of the major websites in the financial sector. Outside of work, she spends most of her time with her family and enjoys hiking, yoga, and reading.
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