What is e-Commerce?

eCommerce (electronic commerce) is the buying and selling of goods and services, or the transmission of funds or data, over electronic networks, especially 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 eCommerce and eBusiness are often used interchangeably. The term eTail is also sometimes used to refer to the transaction processes that make up online retail shopping.

How does eCommerce work?

eCommerce is powered by the internet. Customers access online stores to browse and order products or services through their own devices. When an order is placed, the customer's web browser communicates back and forth with the server hosting the eCommerce website. Data relating to orders is forwarded to a central computer known as an order manager. This will then be passed to a database that manages inventory levels; Merchant systems that manage payment information, using payment gateway applications such as PayPal or bank transfers. Finally, it will cycle back to the order manager. This is to ensure that store inventory and customer funds are sufficient for orders to be processed.