Introduction to E-Commerce

E-commerce is defined as the online transaction of business, connecting 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. As reported by www.searchcio.techtarget.com, e-commerce can be split into the following:

E-tailing or “virtual storefronts” on Web sites with online catalogs

Utilization of demographic information through Web contacts

Electronic Data Interchange (EDI)

Business-to-business buying and trading (B2B)

key facet of e-commerce is online shopping. Online shopping was actually developed by Michael Aldrich in 1979. E-commerce has gained a foothold in the today’s world. Almost in each corner of the globe, people have accepted the advancing importance of e-commerce. It gave rise to 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 used to perform electronic financial transactions.

2. Supply chain management - is the management of interconnected businesses involved in offering products and services to consumers.

3. Internet marketing - is simply put, the marketing of products over the Internet.

4. Online transaction processing - is employed to facilitate and manage transaction-oriented applications through data entry and processing.

5. Electronic data exchange - this is the transmission of data among companies or organizations through 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 carried on between business is generally named B2B or business-to-business. Meanwhile, electronic commerce conducted between businesses and consumers is called B2C. E-commerce actually falls under the umbrella of e-business and also covers data exchange for the facilitation of the financial and payment part of business deals and transactions.