It includes business-to-business, business-to-consumer, and even consumer-to-consumer transactions that involve the buying and selling of goods and services, the transfer of funds, and even the exchange of ideas
E-commerce includes functions such as marketing, manufacturing, finance, selling, and negotiations.
The phrase can also refer to downloading software, accessing games, or downloading content such as journal articles and books.
Business-to-consumer e-commerce can provide customers with convenience and access to a wide range of goods and services, while allowing businesses to reach large or unique markets.
Components of business-to-consumer e-commerce include security measures, "shopping carts," payment options, and marketing.
The electronic shopping cart is a popular feature that allows consumers simply to click on a button to select one or more products for purchase. When the customer has finished shopping, the cart system allows the consumer to "check out."
Various payment options exist to facilitate business-to-consumer e-commerce. These include digital or electronic cash, electronic wallets, and micropayments.
Because e-commerce allows businesses to reach a worldwide market and to compete around the globe, creative marketing and promotion of a web site is crucial to the success of an Internet-based business. This must be balanced with sound business practices, however.
The Internet has changed the nature and structure of competition. In the past, most businesses had to compete within a single industry (such as groceries) and often within a specific geographic area, but the Internet is blurring those boundaries.
An important difference between traditional business and e-commerce is the elimination of the middleman, known as disintermediation .
