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What is e-commerce?

Electronic commerce, commonly known as e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown dramatically since the spread of the Internet. A wide variety of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange (EDI), automated inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well. E commerce is a new technology.

A small percentage of electronic commerce is conducted entirely electronically for "virtual" items such as access to premium content on a website, but most electronic commerce involves physical items and their transportation in at least some way.

E-commerce or electronic commerce is generally considered to be the sales aspect of e-business.

E-commerce can be divided into:

• E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall"
• The gathering and use of demographic data through Web contacts
• Electronic Data Interchange (EDI), the business-to-business exchange of data
  e-mail and fax and their use as media for reaching prospects and established customers (for example, with newsletters)
• Business-to-business buying and selling (B2B)
• The security of business transactions

 Benefits of eCommerce

• Expand Geographical Reach
• Expand Customer Base
• Increase Visibility
• Provide Customers valuable information about your business
• Store is always open
• Build Customer Loyalty
• Reduction of Marketing and Advertising Costs
• Better Analysis & Reporting
• Collection of Customer Data
• Expand your footprint through Affiliates & Vertical sites
• Lower Cost of Sale
• Your marketplace is larger
• Payment for your goods or services can be make immediately.
• You can quickly update prices