What is E-Business?

E-business (electronic business) is the conduct of online business processes on the web, internet, extranet, or a combination thereof. These customer-, internal- and management-focused business processes include buying and selling goods and services, servicing customers, processing payments, managing production and supply chains, collaborating with business partners, sharing information, running automated employee services, and recruiting employees.

E-business is similar to e-commerce but encompasses much more than online purchasing transactions. Functions and services range from the development of intranets and extranets to the provision of e-services over the internet by application service providers. Enterprises conduct e-business to buy parts and supplies from other companies, collaborate on sales promotions and conduct joint research.

The growth of e-business in recent decades has given rise to new business requirements. Consumers expect organizations to provide self-service options to conduct transactions, personalized experiences, and speedy, secure interactions. New regulatory laws and best practices for keeping electronic data secure have been established. Companies have adopted stringent security protocols and tools, including encryption, digital certificates, and multi-factor authentication, to protect against hackers, fraud, and theft.

Different types of e-business models Business-to-consumer (B2C) model. Sellers offer products and services directly to consumers online, and the buyer purchases them via the internet. Business-to-business (B2B) model. Companies use the internet to conduct transactions with one another. Unlike B2C transactions, B2B transactions usually involve multiple online transactions at each step of the supply chain. Consumer-to-business (C2B) model. Consumers create their value and demand for goods and services. Examples include reverse online auctions and airline ticket websites such as Priceline and Expedia. Consumer-to-consumer (C2C) model. Consumers are buyers and sellers via third-party-facilitated online marketplaces such as eBay. These models generate revenue through personal ad fees, charges for memberships and subscriptions, and transaction fees.