E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. It is a process where customers come to a website or online marketplace and purchase products using electronic payments. E-commerce can be conducted over computers, tablets, smartphones, and other smart devices. It is a way for companies to generate revenue from selling products or services online. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.
E-commerce businesses can range from small, home-based operations to large, multi-million dollar enterprises. Two common e-commerce business models are business-to-business (B2B) and business-to-consumer (B2C) . B2B sellers focus on selling products that other businesses may need, while B2C focuses on selling products to shoppers or the end customer. E-commerce allows startups, small businesses, and large companies to sell products at scale and reach customers across the world.
E-commerce is highly competitive, and almost anything can be purchased through e-commerce transactions, including books, music, plane tickets, and financial services such as stock investing and online banking. It can be a substitute for brick-and-mortar stores, though some businesses choose to maintain both. The U.S. e-commerce industry is expected to eclipse $1 trillion in value in 2024, making it a major economic staple for the national economy.
