| Electronic Commerce or e-commerce is the | | | | products can be sold sell over the |
| trade of products and services by means | | | | global Internet, sellers have the |
| of the Internet or other computer | | | | potential to market their products or |
| networks. E-commerce follows the same | | | | services globally and are not limited by |
| basic principles as traditional commerce | | | | the physical location of a store. |
| that is, buyers and sellers come | | | | Internet technologies also permit |
| together to swap commodities for money. | | | | sellers to track the interests and |
| But rather than conducting business in | | | | preferences of their customers with the |
| the traditional way in shopping stores | | | | customer's permission and then use this |
| or through mail order catalogs and | | | | information to build an ongoing |
| telephone operators - in e-commerce | | | | relationship with the customer by |
| buyers and sellers transact business | | | | customizing products and services to |
| over networked computers. | | | | meet the customer's needs. |
| E-commerce offers buyers maximum | | | | E-commerce however has some drawbacks. |
| convenience. They can visit the web | | | | Consumers are hesitant to buy some |
| sites of multiple vendors round the | | | | products online. Online furniture |
| clock a day to compare prices and make | | | | businesses, for example, have failed for |
| purchases, without having to leave their | | | | the most part because customers want to |
| homes or offices from around the globe. | | | | test the comfort of an expensive item |
| In some cases, consumers can immediately | | | | such as a sofa before they purchase it. |
| obtain a product or service, such as an | | | | Many people also consider shopping a |
| electronic book, a music file, or | | | | social experience. For instance, they |
| computer software, by downloading it | | | | may enjoy going to a store or a shopping |
| over the Internet. | | | | mall with friends or family, an |
| For sellers, e-commerce offers a way to | | | | experience that they cannot duplicate |
| cut costs and expand their markets. They | | | | online. Consumers also need to be |
| do not need to build, staff, or maintain | | | | reassured that credit card transactions |
| a physical store or print and distribute | | | | are secure and that their privacy is |
| mail order catalogs. Automated order | | | | respected. |
| tracking and billing systems cut | | | | In the existence of these few |
| additional labor costs, and if the | | | | disadvantages e-commerce has opened new |
| product or service can be downloaded | | | | horizons to versatile the modern age. It |
| then e-commerce firms have no | | | | puts away time, energies, labor and |
| distribution costs involved. Because the | | | | money. |