Ebusiness, or ebiz, is a popular term that is employed in describing a business that is run primarily on the internet or uses various internet-based technologies in order to increase business productivity and profitability. Used more broadly, ebusiness can be used to refer to any kind of electronic business – a business that primarily uses a computer. However, this is considered an archaic use of the term and generally ebusiness is now used to refer exclusively to any kind of internet-based business.
Usually the most common application of an ebusiness is by setting up a storefront – either as an addition to a more traditional storefront or as the primary storefront. Through the act of selling products and services online, an ebusiness can reach a bigger consumer base when compared to a traditional business – also called a brick and mortar store. This particular function of an ebusiness is more commonly known as ecommerce. In fact, both ebusiness and ecommerce, as terms, are interchangeable when used by a majority of people.
Usage of the internet is crucial in an ebusiness. For example, it can be used in order to get wholesale products or supplies for producing products. This particular aspect of business is often referred to as eprocurement. This is a process that can result in the large reduction in costs. Because of this benefit, there are many ebusiness that now use eprocurement as a more efficient way of tracking and managing purchases. Even ebusinesses with no electronic storefronts now also rely on eprocurement.