School of Information Systems

E – Business & E – Commerce

Technology has become a part of our life. Technology makes our life easier and helps us in many things that we can not do without it. Internet lets us connects to each other and feel closer than ever. Through internet, we can communicate with others and feels like no barriers. So, businesses and transaction also occur on the internet and creates a new way to make business. With internet, new business model is created. It is E – Business and E – Commerce that is frequently mentioned in this technological era.  

E – Commerce refers to activity from buying, selling, transferring, or exchanging of products, services, or information over the internet. While E – Business means a broader definition of E – Commerce, buying and selling of goods and services, and also servicing customers, collaborating with partners, conducting e-learning and conducting electronic transactions within an organization including marketing through internet (e-marketing). E – Business enables an organization to process data more efficient and flexible through the utilization of systems information, gain more revenue stream, increase market exposure, reduce organization operational cost, and other benefits that can not be gained in traditional system. While E – Business has many benefits, it also comes with some threats such as losing business opportunity when there is technical problems occur such as connection problem.  

There are four types of E – Business: B2C (business to customer), B2B (business to business), C2C (consumer to consumer), and B2E (business to employee). C2C is the type of E – Business that is common now. This type of business occurs in marketplace or e – commerce. There are many e – commerce such as Amazon or ebay that is very well known. In Indonesia there also e – commerce such as Tokopedia, Shopee, etc. It allows people to easily opens an online shop and sell to each other and also gives transaction facility to both seller and buyer. Not like traditional transaction, seller and buyer do not have to meet face-to-face. Seller don’t have to open physical store in C2C type business model. All they need to do is to open online store on e – commerce. Those are some of the benefits from using e – commerce that doing business in traditional way. Although the advantages from opening e – commerce seems promising, but there are some disadvantages. Buyer sometimes doubting the quality of the goods that they are going to buy because they can not see the physically. The store needs to get good review and reputation to gain more new buyer trust. 

To conclude, e – business is a business system that is broader than e – commerce. E – business have many advantages that can be used by an organization to grow. E – commerce also enables a transaction through marketplace. People can set up store and buy things easily and more convenient. In the end, this type of business that utilize technology and system information is beneficial for us. 

Marisa Karsen