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Ecommerce is buying and selling using an electronic medium. It is accepting credit and payments over the net, doing banking transactions using the Internet, selling commodities or information using the World Wide Web and so on.

Ebusiness in addition to encompassing Ecommerce includes both front and back-office applications that form the engine for modern Ecommerce. Ebusiness is not just about Ecommerce transactions; it's about re-defining old business models, with the aid of technology to maximize customer value. Ebusiness is the overall strategy and Ecommerce is an extremely important facet of Ebusiness.

Thus ebusiness involves not merely setting up the company website and being able to accept credit card payments or being able to sell products or services on time. It involves fundamental re-structuring and streamlining of the business using technology by implementing enterprise resource planning (ERP) systems, supply chain management, customer relationship management, data ware housing, data marts, data mining, etc.

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Some people use the terms "ebusiness" and "ecommerce" interchangeably. After all, they both involve business processes conducted electronically -- quite likely on the Internet. Others view ecommerce to be a subset of ebusiness.

Ecommerce Is Narrower
If we regard ecommerce as different from ebusiness, then the only valid view we can adopt is that ecommerce is a narrower discipline. Ebusiness accounts for all business processes conducted online, while ecommerce is restricted to buying and selling.

Of course this narrower definition flies in the face of many of the articles I have written in the past, such as the . In most such articles several of the characteristics I attribute to ecommerce are actually broader than merely buying and selling.

What Is Ebusiness?
So that we do not end up splitting hair, it is best to understand ebusiness with the help of examples:•Email marketing to existing customers and prospects is an ebusiness activity, as it electronically conducts a business process -- in this case marketing.


•An online system that tracks inventory and triggers alerts at specific levels is also ebusiness. Inventory management is a business process. When facilitated electronically, it becomes part of ebusiness.

•A content management system that manages the work flow between content-developer, editor, manager, and publisher is another example of ebusiness. In the absence of an electronic work flow, the physical movement of paper files would conduct this process. By electronically enabling it, we are now in the realm of ebusiness.

•An online induction program for new employees automates part of whole of its offline counterpart.

I guess you get the idea. As long as something is a business process conducted on electronic networks, it is fair to call it an ebusiness process.

Further reading is avaialable here:
http://ecommerce.about.com/od/eCommerce ... mmerce.htm

Source:
Computerworld -

Computerworld - eBusiness and eCommerce are terms that are sometimes used interchangeably, and sometimes they're used to differentiate one vendor's product from another. But the terms are different, and that difference matters to today's companies.

For full article by Andrew Bartels use the link in source above.

Electronic commerce or ecommerce is a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet. It covers a range of different types of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations. It is currently one of the most important aspects of the Internet to emerge.