Electronic 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 extraordinarily 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 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.
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 the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web.
Electronic commerce that is conducted between businesses is referred to as Business-to-business or B2B. B2B can be open to all interested parties e.g. commodity exchange or limited to specific pre-qualified participants private electronic market.
Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions.
Early development
The meaning of electronic commerce has changed over the last 30 years. Originally electronic commerce meant the facilitation of commercial transactions electronically using technology such as Electronic Data Interchange EDI and Electronic Funds Transfer EFT. These were both introduced in the late 1970s allowing businesses to send commercial documents like purchase orders or invoices electronically. The growth and acceptance of credit cards automated teller machines ATM and telephone banking in the 1980s were also forms of electronic commerce. From the 1990s onwards electronic commerce would additionally include enterprise resource planning systems ERP data mining and data warehousing.
Perhaps it is introduced from the Telelphone Exchange Office.The earliest example of many-to-many electronic commerce in physical goods was the Boston Computer Exchange a marketplace for used computers launched in 1982. The first online information marketplace including online consulting was likely the American Information Exchange another pre-Internet online system introduced in 1991.
Web development
When the Web first became well-known among the general public in 1994 many journalists and pundits forecast that e-commerce would soon become a major economic sector. However it took about four years for security protocols like HTTPS to become sufficiently developed and widely deployed. Subsequently between 1998 and 2000 a substantial number of businesses in the United States and Western Europe developed rudimentary web sites.
In the dot com era electronic commerce came to include activities more precisely termed "Web commerce" -- the purchase of goods and services over the World Wide Web usually with secure connections with e-shopping carts and with electronic payment services such as credit card payment authorizations.
Although a large number of "pure" electronic commerce companies disappeared during the dot-com collapse in 2000 and 2001 many "brick-and-mortar" retailers recognized that such companies had identified valuable niche markets and began to add e-commerce capabilities to their Web sites. For example after the collapse of online grocer Webvan two traditional supermarket chains Albertsons and Safeway both started e-commerce subsidiaries through which consumers could order groceries online.
The emergence of electronic commerce also significantly lowered barriers to entry in the selling of many types of goods; many small home-based proprietors are able to use the internet to sell goods. Often small sellers use online auction sites such as eBay or sell via large corporate websites like Amazon.com in order to take advantage of the exposure and setup convenience of such sites.
$259 billion of online sales including travel are expected in 2007 in USA an 18% increase from the previous year as forecasted by the State of Retailing Online 2007 report from the National Retail Federation NRF and Shop.org.
Currently there are 67 Fortune 1000 companies that have ecommerce revenues greater than $10 million. The 5 largest Internet retailers are Amazon Staples Office Depot Dell and Hewlett Packard. This indicates that the top categories of products sold on the Internet are books music office supplies computers and other consumer electronics. A list of Fortune 1000 companies ranked by ecommerce revenues can be found on AListNet.