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Electronic commerce (E-Commerce) refers to economic activity which takes place online. It is the buying and selling of products and services by businesses and consumers via an electronic medium, without employing any paper documents. E-commerce is broadly considered the buying-selling of products over the internet; however any transaction that is completed solely via electronic measures can be considered as E-Commerce. E-commerce comprises all kinds of business activity, like retail shopping, investing, banking, and rentals.

E-commerce can be classified into:

A) E-tailing or "virtual store-fronts" on websites with online catalogs, sometimes grouped into a "virtual mall"

B) The grouping and use of demographic data via Web contacts.

C) Electronic Data Interchange (abbreviated as EDI), the business-to-business exchange of data.

D) E-mail and fax and their utilization as media for reaching prospects and established customers (for illustration, with newsletters)

E) The security of business transactions.

F) Business-to-business buying-selling.

Benefits of E-commerce:

  • Easy for Businesses
  • Security Improvements
  • Convenient for Shoppers
  • Prices Often Lower

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