Business Planning

What Is The Difference Between A Business Model And An E-Business Model?

By Sourav Ganguly

April 5, 2021

what is the difference between a business model and an e-business model?

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What Is The Difference Between A Business Model And An E-Business Model?

Being an entrepreneur, it is very important that you know what is the difference between a business model and an e-business model. If you already own a traditional business and are planning to take it over to the internet platform then you have to know some business management tips, then reading this article would be of great help to you. Since these two types of business vary in certain aspects, their models too differ extensively. 

Although the differences between them do not determine one’s superiority over the other, in today’s world, e-business is much more preferred and appreciated. Although it entirely depends on the kinds of products and services you are providing so as to which of the business models are best suited for you. You can even try your luck with adapting both the business models simultaneously. 

What Is A Business Model?

What Is The Difference Between A Business Model And An E-Business Model?

A business model basically explains a strategic plan that an organization undertakes to earn profits with its products or services and its customer base in a particular target market. Business models are in a constantly changing loop with changes in the market. 

A business model generally covers certain aspects such as what kind of a product or service the organization is going to sell, what are the marketing strategies or business growth strategies, what kind of expenses might be incurred, what are the plans for generating better revenue? A successful business model will look into all these factors and try to find out the necessary solution for each. 

What Is A Traditional Business Model?

What Is The Difference Between A Business Model And An E-Business Model?

I am sure you are well acquainted with what a traditional business is all about. It basically deals with the exchange of products and services between two people or two parties in return for some payment. This is the most common process of handling business operations. A traditional business of an organization comprises an office, or outlet, or store along with a number of employees and other aspects required to run a business physically. 

The basic objective of such a business is to generate more revenue for the owners, you can improve customer service for that in a way and operators than the funds that have been invested. The business models work in a way that analyzes the expenses that will be incurred during the manufacturing, marketing, and distribution of the service or product. 

What Is An E-Business Model?

Quite similar to a traditional business, e-business is a type of commercial business that operates over the internet platform. The business conducts the exchange of goods and services in return for some compensation or exchange of information between two individuals or two organizations online. 

With technological advancement, such activities are also being carried out on social media platforms. In such a business, even the transactions are done over online payment gateways such as Paypal, Google Pay, Amazon Pay, etc. To earn consistent profits, these agencies adopt certain approaches or strategies. The e-business model basically operates on four aspects:

  • (B2B) Business to Business 
  • (B2C) Business to Consumer 
  • (C2B) Consumer to Business 
  • (C2C) Consumer to Consumer 

What Is The Difference Between A Business Model And An eBusiness Model?

What Is The Difference Between A Business Model And An E-Business Model?

In such an era of globalization, e-businesses have taken an edge over the traditional type of businesses. Even more, since the pandemic, as people started avoiding going out to purchase their necessary requirements, e-businesses have become more prominent. 

A normal business differs from an e-business in various aspects. Now, to understand what is the difference between a business model and an e-business model, let us look further:

          Traditional Business Model                           E-business Model
  1. It is a physical business model.
  2. The business relationship is linear.
  3. The scope of business is limited to a restricted area.
  4. Physical presence is required for access to products and services. 
  5. You can check and analyze the product before ordering.
  6. Quick delivery.
  7. Only cash or credit and debit cards are accepted for payment. 
  1. It is a virtual business model.
  2. The business relationship is end-to-end.
  3. There is enough scope to spread your business across the world.
  4. Easy access to all products and services.
  1. You can only view the product when it is delivered.
  2. The delivery process may take some time.
  3. Cash, credit card, debit card, online payment gateways, NEFT, and all are accepted.

Final Thoughts

What Is The Difference Between A Business Model And An E-Business Model?

I hope this article could help you understand what is the difference between a business model and an e-business model. There are certain advantages and shortfalls of both types of business. However, that does not determine their value in society. Certain products or services are better availed at a traditional business outlet. 

 

However, with various developments in the world, almost everything and anything is going over the internet. Even those we couldn’t imagine of. E-businesses are also having the upper hand since it lets consumers order and purchase anything they want, sitting right in the comfort of their homes. 

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Sourav Ganguly

Sourav Ganguly is a dynamic author in the fields of finance and business, celebrated for his adeptness in SEO and digital marketing. With a Master of Computer Application, he translates complex financial concepts into accessible insights that resonate with both seasoned professionals and novices alike. His notable works have established him as an expert, guiding businesses to thrive in the digital realm.

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