When running an ecommerce business, most entrepreneurs focus on the front-end: building a great-looking website, attracting customers, and managing sales. But behind the scenes, another set of processes keeps the business running smoothly—acquiring products, managing suppliers, and ensuring that inventory is always in stock.
Two terms that often come up in this context are procurement vs purchasing. They’re sometimes used interchangeably, but they’re not the same. Understanding the difference between these two processes can save your business money, reduce operational risks, and give you a competitive edge.
In this blog, we’ll explore procurement vs purchasing, break down the differences, and explain why both matter for ecommerce businesses. We’ll also show how Bizzilo’s built-in tools help you streamline these processes, making online store management more efficient.
What is Procurement?
Procurement is the strategic process of acquiring goods or services for your business. It goes beyond simply buying—it’s about choosing the right suppliers, negotiating long-term deals, and ensuring that every purchase adds value to your business.
For ecommerce businesses, procurement can involve sourcing raw materials, finding suppliers for finished goods, negotiating contracts with logistics providers, or even selecting packaging vendors. It’s a process that takes into account cost, quality, reliability, compliance, and supplier management.
Core activities of the procurement process include:
- Identifying business needs in advance
- Researching and shortlisting reliable suppliers
- Preparing a request for quotation (RFQ) to compare vendor offers
- Negotiating contracts for the best value
- Managing long-term supplier management strategies
- Tracking performance and optimizing spend
Procurement is long-term and strategic—it’s about securing value and sustainability, not just cutting costs.
What is Purchasing?
Purchasing is the transactional side of procurement. It focuses on the actual buying process: placing orders, paying invoices, and ensuring that products or services are delivered on time.
For ecommerce stores, purchasing might include ordering bulk stock from a supplier, buying packaging materials, or paying for logistics services. While procurement looks at the big picture, purchasing ensures that the immediate needs of the business are met.
Core activities of the purchasing process include:
- Raising requisitions
- Creating and approving a purchase order
- Sending the purchase order to the supplier
- Receiving goods or services
- Inspecting deliveries to ensure quality
- Processing invoices and completing the procure to pay cycle
Purchasing is short-term and operational—it ensures that what the business needs right now is delivered without delay.
Procurement vs Purchasing: Key Differences
Although procurement and purchasing are closely related, they serve different purposes. Here’s a simplified comparison:
Focus
-Procurement: Strategic, long-term value
-Purchasing: Transactional, short-term needs
Scope
-Procurement: Supplier sourcing, negotiations, compliance, supplier management
- Purchasing: Raising POs, receiving goods, making payments
Decision-making
-Procurement: Involves multiple stakeholders
-Purchasing: Usually handled by operations
Approach to cost
-Procurement: Total cost of ownership, quality, lifecycle
-Purchasing: Immediate purchase price
Timeframe
-Procurement: Ongoing and long-term
-Purchasing: Immediate and short-term
In simple terms:
Procurement = strategy
Purchasing = execution
Both are necessary, but understanding their differences helps businesses avoid inefficiency.
Why Ecommerce Businesses Must Understand the Difference
If you’re running an online store, knowing the difference between procurement vs purchasing can make the difference between smooth operations and supply chain chaos.
1. Cost Optimization
The procurement process ensures you get the best deals and favorable contracts, while the purchasing process ensures you only buy what you need, when you need it. Together, they prevent overspending and reduce waste.
2. Reliable Supply Chains
Strong procurement builds relationships with dependable suppliers, reducing the risk of stockouts. Purchasing ensures your store always has the right inventory on hand.
3. Better Supplier Relationships
Supplier management is at the heart of procurement. It helps you build long-term partnerships while purchasing ensures each transaction is smooth.
4. Compliance and Risk Management
Procurement ensures that suppliers meet ethical, legal, and quality standards. This is particularly important for ecommerce businesses sourcing internationally with request for quotation processes.
5. Operational Efficiency
Purchasing makes sure your stock arrives on time. Procurement ensures you’re working with the best suppliers. Together, they complete the procure to pay cycle efficiently.
The Procurement Process: Step by Step
- Identify needs – Define what your ecommerce business requires, such as new stock, services, or logistics support.
- Research suppliers – Compare different vendors based on reliability, cost, and quality.
- Request proposals – Collect quotes and proposals to compare offerings.
- Negotiate contracts – Secure favorable agreements that benefit your business long-term.
- Onboard suppliers – Add new suppliers to your approved list.
- Track and review – Regularly evaluate supplier performance and adjust if necessary.
The Purchasing Process: Step by Step
- Raise requisition – Identify an immediate need and request approval.
- Create purchase order – Convert approved requisition into a PO.
- Send purchase order – Share with the chosen supplier.
- Receive goods or services – Accept deliveries and confirm that they meet requirements.
- Inspect quality – Verify that items match specifications.
- Process payment – Clear invoices and record the transaction.
How Bizzilo Simplifies Procurement and Purchasing
Managing procurement and purchasing manually can be time-consuming, especially when your ecommerce store starts scaling. That’s where Bizzilo comes in. As an all-in-one platform for ecommerce businesses, Bizzilo doesn’t just help you build your online store—it also helps you run it efficiently.
For Procurement:
- Supplier management – Keep track of all your vendors, contracts, and performance.
- Analytics and insights – Monitor costs, compare supplier performance, and make data-driven decisions.
- Strategic planning – Forecast needs and align procurement with business growth.
For Purchasing:
- Purchase order management – Create, track, and approve POs directly from your dashboard.
- Inventory integration – Automatically link purchasing with inventory to avoid overstocking or shortages.
- Billing and payments – Handle invoices and payments seamlessly within the same system.
- Error reduction – Automated processes reduce the risk of missed orders or duplicate purchases.
With Bizzilo, ecommerce businesses can handle both procurement vs purchasing seamlessly while improving online store management.
Conclusion
The terms procurement vs purchasing are often confused, but they play very different roles in running an ecommerce business. Procurement is the strategic backbone, while purchasing is the operational muscle. Without procurement, you risk poor vendor relationships and high costs. Without purchasing, your day-to-day operations won’t run.
With Bizzilo, you can manage both in one platform. From request for quotation to procure to pay, from supplier management to a full purchase order system, Bizzilo helps ecommerce businesses streamline operations and scale with confidence.
Whether you’re just starting your store or managing a growing one, mastering the difference between procurement and purchasing—and using the right tools—will help you succeed.
FAQs
Q1: What’s the simplest way to understand procurement vs purchasing?
Procurement is about strategy—finding the right suppliers and negotiating value. Purchasing is about execution—placing a purchase order and making payments.
Q2: Can a small business focus only on purchasing?
Yes, many startups begin with the purchasing process, but as the business grows, the procurement process becomes essential.
Q3: How does Bizzilo support supplier management?
Bizzilo helps with supplier management by storing vendor details, tracking performance, and improving negotiations.
Q4: Does Bizzilo automate purchase orders?
Yes. Its purchase order system lets you create, approve, and track POs seamlessly.
Q5: Why does procurement matter for ecommerce?
Because procurement ensures long-term value, efficiency, and cost savings—key for sustainable online store management.