E-commerce is a type of industry where the buying and selling of products and services is conducted over electronic systems such as the internet and other computer networks. It draws on technologies, such as mobile commerce, electronic funds transfer, internet marketing, online transaction processing, inventory management system and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life cycle, although it may encompass a wider range of technologies such as email, mobile devices, social media and telephones as well.
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.
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. Business can be conducted through the internet, does not matter where an individual is currently located. The power of e-commerce allows geophysical barriers to disappear, making all consumers and businesses on earth potential customers and suppliers. E-commerce has grown in importance as companies have adopted pure-click and brick-and-click channel systems.
We can distinguish pure-click and brick-and-click channel system adopted by companies.
- Pure-click or pureplay companies are those that have launched a website without any previous existence as a firm.
- Bricks-and-clicks companies are those existing companies that have added an online site for e-commerce.
- Click-to-brick online retailers that later open physical locations to supplement their online efforts.