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Electronic commerce, commonly known as e-commerce or eCommerce,or
e-business consists of the buying and selling of products or services
over electronic systems such as the Internet and other computer
networks. 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, 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 at least at some
point in the transaction's lifecycle, although it can encompass a wider
range of technologies such as e-mail 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 or B2B. B2B can be open to all interested
parties (e.g. commodity exchange) or limited to specific, pre-qualified
participants (private electronic market). Electronic commerce that is
conducted between businesses and consumers, on the other hand, is
referred to as business-to-consumer or B2C. This is the type of
electronic commerce conducted by companies such as Amazon.com. Online
shopping is a form of electronic commerce where the buyer is directly
online to the seller's computer usually via the internet. There is no
intermediary service. The sale and purchase transaction is completed
electronically and interactively in real-time such as Amazon.com for new
books. If an intermediary is present, then the sale and purchase
transaction is called electronic commerce such as eBay.com.
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 the business transactions.
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