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E-commerce

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Commerce is the whole system of an economy that constitutes an environment for business. The system includes legal, economic, political, social, cultural and technological systems that are in operation in any country. Thus, commerce is a system or an environment that affects the business prospects of an economy. It can also be defined as a component of business which includes all activities, functions and institutions involved in transferring goods from producers to consumers. .

Electronic commerce, commonly known as E-commerce or eCommerce, is trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail, mobile devices, social media, and telephones. .

Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business. It is a market entry strategy where the company may or may not have a physical presence. E-commerce businesses usually employ some or all of the following practices:

– Provide Etail or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall".

– Buy or sell on websites or online marketplaces.

– Gather and use demographic data through web contacts and social media.

– Use electronic data interchange, the business-to-business exchange of data.

– Reach prospective and established customers by E-mail or fax (for example, with newsletters).

– Use business-to-business buying and selling.

– Provide secure business transactions.

Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers' ability to gather information about products and prices. Individual or business involved in e-commerce whether buyers or sellers rely on Internet-based technology in order to accomplish their transactions. E-commerce is recognized for its ability to allow business to communicate and to form transaction anytime and anyplace. Whether an individual is in the US or overseas, business can be conducted through the internet. The power of e-commerce allows geophysical barriers to disappear, making all consumers and businesses on earth potential customers and suppliers. E-bay is a good example of e-commerce business individuals and businesses are able to post their items and sell them around the Globe.