Q.Distinguish between e-business and e-commerce.

Both use IT for business, but one is wider than the other.

Remember the containment: all e-commerce is e-business, but not all e-business is e-commerce.

E-commerce and e-business are related but not identical.

E-commerce (electronic commerce) means specifically the buying and selling of goods and services, and the payment for them, over an electronic network such as the internet. It is the trading activity — an online store taking an order and receiving payment is engaging in e-commerce.

E-business (electronic business) is the wider idea: it is the running of any business activity with the help of IT. Besides buying and selling, it also covers inventory management, online accounting, electronic communication with suppliers, customer support, recruitment and internal office automation.

Key points of difference:

• Scope: e-commerce is narrow (only trading); e-business is wide (all business activities).
• Relationship: e-commerce is a part of e-business — all e-commerce is e-business, but not all e-business is e-commerce.
• Example: an online sale is e-commerce; using IT to track stock, keep accounts and answer customer queries is e-business that is not e-commerce.

Treating the two as the same word. The safe test: if it is only about buying/selling it is e-commerce; if it also covers the supporting business activities it is the wider e-business.