E-Commerce and E-Business are two completely different terms but unfortunately they are always used interchangeably by many of us. The reason behind this lies in the meanings of “business” and “commerce” in English language. But there is a difference between e-commerce and e-business. There are many people who understand the subtle differences between the two and there had always been a debate among these two groups about the differences and similarities between e-commerce and e-business. The aim of writing this article is to clearly bring out the differences between the two as both of them are completely different phenomenon.