E-commerce is defined as the online transaction of business, linking a vendor or seller and a buyer. Diverse products and services are being offered, but it's foundations is that the interactions, deal sign-ups and the payment processes happen online. According to www.searchcio.techtarget.com, e-commerce can be divided into the following:
E-tailing or "virtual storefronts" on Web sites with online catalogues
Use of demographic information through Web contacts
Electronic Data Interchange (EDI)
Business-to-business buying and selling (B2B)
key facet of e-commerce is online shopping. Online shopping was actually developed by Michael Aldrich in 1979. E-commerce has earned a foothold in the today's world. Almost in each corner of the globe, people have recognized the advancing significance of e-commerce. It led to the development of electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.
1. Electronic funds transfer - is the computer-based systems that are employed to execute electronic financial transactions.
2. Supply chain management - is the management of integrated businesses involved in supplying products and services to consumers.
3. Internet marketing - is simply put, the marketing of products through the Internet.
4. Online transaction processing - is used to facilitate and oversee transaction-oriented applications through data entry and processing.
5. Electronic data exchange - this is the transmission of data among companies or organizations over electronic means.
6. Inventory management systems - it is electronically monitoring objects or materials through the use of barcodes, or other automatic identification for the inventory of objects.
Electronic commerce conducted between business is most commonly called B2B or business-to-business. Meanwhile, electronic commerce carried on between businesses and consumers is called B2C. E-commerce actually falls under the umbrella of e-business and also embraces data exchange for the facilitation of the financial and payment part of business deals and transactions.