Many of us use the terms E-commerce and business interchangeably which are actually two different concepts in modern business. In both these terms, e refers to the electronic network which is used as a medium for e-commerce and business activities. A common analogy can be said in the case of e-commerce and business as all squares are rectangles and all rectangles are not squares.

The definition of e commerce explains it as a transaction completed through a computer network which utilizes the transfer of ownership of a service or product. In certain transactions price are excluded and free downloads are also used in ecommerce. Generally Ecommerce include transactions which are made through internet or intranet. There are mainly two categories involved in e commerce. These are online purchasing and online shopping. In the case of online purchasing business organizations help customers find the relevant information, ask the price and submit orders. In the case of online shopping the decision to buy is solely depend on the motive of consumers which are completed online.

In the case of e-business, both transactions which are part of e-commerce and traditional activities which are done through the internet is also included. Any part of the process which is done internally can be done through the internet in the case of e-business. This can include management of inventory, financial management, hr management etc. E-business can be implemented for any kind of business either fully or partially due to its capability for integrating production, procurement, distribution, sales, payment and marketing. In the case of e-business managing customers, suppliers and business partners are much more convenient.