Electronic commerce, commonly known as

e-commerce E-commerce (electronic commerce) refers to commercial activities including the electronic buying or selling products and services which are conducted on online platforms or over the Internet. E-commerce draws on technologies such as mobile co ...

or eCommerce, or

e-business Electronic business (also known as online business or e-business) is any kind of business or commercial activity that includes sharing information across the internet. Commerce constitutes the exchange of products and services between businesses, ...

consists of the buying and selling of products or services over

electronic system Electronic may refer to: *Electronics, the science of how to control electric energy in semiconductors *Electronics (magazine), ''Electronics'' (magazine), a defunct American trade journal *Electronic storage, the storage of data using an electron ...

s such as the

Internet The Internet (or internet) is the Global network, global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a internetworking, network of networks ...

and other

computer network A computer network is a collection of communicating computers and other devices, such as printers and smart phones. In order to communicate, the computers and devices must be connected by wired media like copper cables, optical fibers, or b ...

s. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in

electronic funds transfer Electronic funds transfer (EFT) is the transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems. The funds transfer process generally consists ...

supply chain management In commerce, supply chain management (SCM) deals with a system of procurement (purchasing raw materials/components), operations management, logistics and marketing channels, through which raw materials can be developed into finished produc ...

Internet marketing The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a network of networks that consists of private, publ ...

, online transaction processing,

electronic data interchange Electronic data interchange (EDI) is the concept of businesses electronically communicating information that was traditionally communicated on paper, such as purchase orders, advance ship notices, and invoices. Technical standards for EDI exist to ...

(EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the

World Wide Web The World Wide Web (WWW or simply the Web) is an information system that enables Content (media), content sharing over the Internet through user-friendly ways meant to appeal to users beyond Information technology, IT specialists and hobbyis ...

at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as

e-mail Electronic mail (usually shortened to email; alternatively hyphenated e-mail) is a method of transmitting and receiving Digital media, digital messages using electronics, electronic devices over a computer network. It was conceived in the ...

as well. A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web. Electronic commerce that is conducted between businesses is referred to as

business-to-business Business-to-business (B2B or, in some countries, BtoB) refers to trade and commercial activity where a business sees other businesses as its customer base. This typically occurs when: * A business sources materials for its production process for ...

or B2B. Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as

business-to-consumer Direct-to-consumer (DTC or D2C) or business-to-consumer (B2C) is the business model of selling products directly to customers and thereby bypassing any third-party retailers, wholesalers, or middlemen. Direct-to-consumer sales are usually transa ...

or B2C. This is the type of electronic commerce conducted by companies such as Amazon.com.

Online shopping Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of th ...

is a form of electronic commerce where the buyer is connected directly online to the seller's computer usually via the Internet. There is no specific intermediary service. The sale and purchase transaction is completed electronically and interactively in real-time, such as when buying a new book on Amazon.com. If an intermediary is present, then the sale and purchase transaction is called

consumer-to-consumer Customer to customer (C2C or consumer to consumer) markets provide a way to allow customers to interact with each other. Traditional markets require business to customer relationships, in which a customer goes to the business in order to purchas ...

, such as an online auction conducted on eBay.com. This

payment system A payment system is any system used to settle financial transactions through the transfer of monetary value. This includes the institutions, payment instruments such as payment cards, people, rules, procedures, standards, and technologies that ...

has been widely accepted by

consumer A consumer is a person or a group who intends to order, or use purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. ...

s and

merchant A merchant is a person who trades in goods produced by other people, especially one who trades with foreign countries. Merchants have been known for as long as humans have engaged in trade and commerce. Merchants and merchant networks operated i ...

s throughout the world, and is by far the most popular method of payments especially in the retail markets. Some of the most important advantages over the traditional modes of payment are:

privacy Privacy (, ) is the ability of an individual or group to seclude themselves or information about themselves, and thereby express themselves selectively. The domain of privacy partially overlaps with security, which can include the concepts of a ...

, integrity, compatibility, good transaction efficiency, acceptability, convenience, mobility, low

financial risk Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. Often it is understood to include only downside risk, meaning the potential for financi ...

and

anonymity Anonymity describes situations where the acting person's identity is unknown. Anonymity may be created unintentionally through the loss of identifying information due to the passage of time or a destructive event, or intentionally if a person cho ...

. This flow of ecommerce payment system can be better understood from the flow of the system below. Credit card 20101225

References

* * * {{refend Online payments E-commerce Electronics industry Supply chain management

See also

References