What Is E-commerce and E-business?

Transacting or facilitating business on the Internet is called ecommerce. Ecommerce is short for "electronic commerce.". E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet, especially the World Wide Web. In practice, this term and a newer term, e-business, are often used interchangably. For online retail selling, the term e-tailing is sometimes used.

Popular examples of ecommerce revolve around buying and selling online. But the ecommerce universe contains other types of activities as well. Any form of business transaction conducted electronically is ecommerce.

Examples of Ecommerce

• Online Shopping
  Buying and selling goods on the Internet is one of the most popular examples of ecommerce. Sellers create storefronts that are the online equivalents of retail outlets. Buyers browse and purchase products with mouse clicks. Though Amazon.com is not the pioneer of online shopping, it is arguably the most famous online shopping destination.
  
• Electronic Payments
  When you are buying goods online, there needs to be a mechanism to pay online too. That is where payment processors and payment gateways come into the picture. 

Electronic payments reduce the inefficiency associated with writing and mailing checks. It also does away with many of the safety issues that arise due to payment made in currency notes.

eBusiness (e-Business), or Electronic Business, is the administration of conducting business via the Internet. This would include the buying and selling of goods and services, along with providing technical or customer support through the Internet. e-Business is a term often used in conjunction with e-commerce, but includes services in addition to the sale of goods.

Activities using eBusiness tools include:

• trading of goods or services online, such as eProcurement, primarily through websites
• electronic retailing (eTailing)
• use of the Internet, intranets or extranets to conduct research and manage business activities
• website marketing
• online communications, such as email
• online training for staff (eLearning).

eBusiness tools include:

• mobile phones
• personal digital assistants (PDAs)
• electronic data interchange
• file transfer
• facsimile
• video conferencing, Internet, intranets and extranets.

eBusiness and your business

eBusiness is more than having a website for your business. Using eBusiness tools can make your administrative and operational activities more efficient through:

• accessing the Internet to source information about your industry, suppliers and products and for general research
• the use of electronic transaction, for example online banking, financial management, stock control and compliance reporting to regulatory bodies such as the Australian Taxation Office
• purchasing and selling without a web presence by using email or efax
• human resources management, through the development of an intranet for news, policies, staff movements and enabling staff to apply for leave and access their personnel information online
• customer relationship management, which integrates front and back office functions of an organisation through electronic capabilities
• using appropriate project management software.

Advantages

The benefits of implementing eBusiness tools is not so much in the use of technology, as in the streamlining of business processes and the ease in finding new markets. Some of the advantages include:

• quicker and easier communications
• strengthened marketing capabilities and reach
• increased hours of operation (a website provides 24 hour 7 day information to existing and potential customers)
• access to broader information through research
• reducing the cost of doing business by lowering transaction costs and increasing efficient methods for  payment, such as using online banking and reducing stationery and postage costs
• the opportunities to adopt new business models and develop tailored customer support.

For further information contact your nearest Territory Business Centre.

Disclaimer: The material contained in this web page is intended for use as a guide and for general information only. It is not intended to be a substitute for independent professional advice. The Department of Business of the Northern Territory Government accepts no responsibility or liability for the correctness, accuracy and completeness of any of the material contained in this web page and recommends that users of this web page exercise their own skill, care and judgment in the application of the information contained in the web page.

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