what is electronic commerce?

Electronic commerce, commonly known as (electronic marketing) e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks.
A type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet. Electronic commerce operates in all four of the major market segments: business to business, business to consumer, consumer to consumer and consumer to business.

Use of electronic communications, particularly via the internet, to facilitate the purchase/sale of goods and services. E-commerce includes all forms of electronic trading including electronic data interchange (EDI), electronic banking, electronic mail and other online services.
ECommerce is a catch-all term for trading via electronic telecommunications such as the Internet or WAP. It is commonly used more specifically to describe the process by which a website accepts payments, either using a gateway such as PayPal or WorldPay, or directly through it's own payment system.

Aspects of e-commerce include:

* E-tailing or "virtual storefronts" on websites with online catalogs.
* The gathering and use of demographic data through Web contacts.
* Electronic Data Interchange (EDI), the business-to-business exchange of data.
* email, instant messaging and social networking as media for reaching prospects and established customers.
* Business-to-business buying and selling.
* The security of business transactions.

E-COMMERCE EXAMPLES

Examples of e-commerce transactions are:

* An individual purchases a book on the Internet.
* A government employee reserves a hotel room over the Internet.
* A business calls a toll free number and orders a computer using the seller's interactive telephone system.
* A business buys office supplies on-line or through an electronic auction.
* A retailer orders merchandise using an EDI network or a supplier's extranet.
* A manufacturing plant orders electronic components from another plant within the company using the company's intranet.
* An individual withdraws funds from an automatic teller machine (ATM).