E-commerce

E-commerce, short for electronic commerce, is a business transaction that occurs over an electronic network such as the Internet. Anyone with access to a computer, an Internet connection, and a means to pay for purchased goods or services can participate in e-commerce (Figure).
In the past, e-commerce transactions were conducted primarily using desktop computers. Today, many mobile computers and devices, such as smart phones, also access the Web wirelessly. Some people use the term m-commerce (mobile commerce) to identify e-commerce that takes place using mobile devices.
Popular uses of e-commerce by consumers include shopping, investing, and banking. Users can purchase just about any product or service on the Web. Some examples include groceries, flowers, books, computers, prescriptions, music, movies, cars, airline tickets, and concert tickets. Through online investing, individuals buy and sell stocks or bonds without using a broker.
Three different types of e-commerce are business-to-consumer, consumer-to-consumer, and business-to-business. Business-to-consumer (B2C) e-commerce consists of the sale of goods and services to the general public. For example,
a B2C Web site. Instead of visiting a computer store to purchase a computer, customers can order one that meets their specifications directly from the Dell Web site.
Customer (consumer) visits an online business through an electronic storefront, which contains product descriptions, images, and a shopping cart. The shopping cart allows the customer to collect purchases. When ready to complete the sale, the customer enters personal data and the method of payment, pref¬erably through a secure Internet connection. Read Looking Ahead 2-2 for a look at the next generation of shopping carts.
Instead of purchasing from a business, consumers can purchase from each other. For example, with an online auction, users bid on an item being sold by someone else. The highest bidder at the end of the bidding period purchases the item. Consumer-to-consumer (C2C) e-commerce occurs when one consumer sells directly to another, such as in an online auction. eBay is one of the more popular online auction Web sites.

Most e-commerce, though, actually takes place between businesses/which is called business-to-business (B2B) e-commerce. Busi¬nesses often provide goods and services to other businesses, such as online advertising, recruiting, credit, sales, market research, technical support, and training. For example, some MasterCard and Visa credit card companies provide corporations with Web-based purchas¬ing, tracking, and transaction downloading capabilities.
As an alternative to entering credit card, bank Some shopping and auction Web sites allow consumers to use an online payment service such as PayPal or Google Checkout. To use an online payment service, you create an account that is linked to your credit card or funds at a financial institution. When you make a purchase, you use your online payment service account, which transfers money for you without revealing your financial information.