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What Is E-commerce
E- commerce (electronic commerce) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer or consumer-to-business. The terms e-commerce and e-business are often used interchangeably. The term e-tail is also sometimes used in reference to the transactional processes that make up online retail shopping.
In the last decade, widespread use of e-commerce platforms such as Amazon and eBay has contributed to substantial growth in online retail. In 2007, e-commerce accounted for 5.1% of total retail sales; in 2019, e-commerce made up 16.0%.
How does e-commerce work?
E-commerce is powered by the internet, where customers can access an online store to browse through, and place orders for products or services via their own devices.
As the order is placed, the customer’s web browser will communicate back and forth with the server hosting the online store website. Data pertaining to the order will then be relayed ...
... to a central computer known as the order manager — then forwarded to databases that manage inventory levels, a merchant system that manages payment information (using applications such as PayPal), and a bank computer — before circling back to the order manager. This is to make sure that store inventory and customer funds are sufficient for the order to be processed
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