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Defining e-commerce

E-commerce is a new way of conducting, managing an executing business transactions using modern information technology. E-commerce is a ‘commerce based on bytes’. E-commerce, defined simply, is the commercial transaction of services in an electronic format. In general terms, e-commercial is a business methodology that addresses the needs of organizations, traders and consumers to reduce costs while improving the quality of goods and services and increasing the speed of service delivery. It may also be referred to as the paperless exchange of business information using Electronic Data Interchange, Electronic Fund Transfer etc. E-commerce is not only about simple transactions of data but also general commercial acts such as publicity, advertisements, negotiations contracts and fund settlements. It refers to all forms of transactions relating to commercial activities including both organizations and individuals that are based upon the processing and transmission of digitized data, including text sound and visual images. E-commerce is thus a business practice and involves use of computers, computer system or computer networks. 

      The World Trade Organization (WTO) Ministerial Declaration on E-commerce defines e-commerce as, “the production, distribution, marketing, sales of delivery of goods and services by electronic means”. The six main instruments of e-commerce that have been recognized by WTO are telephone, fax, TV, electronic payment and money transfer systems, EDI (electronic data interchange) and the internet. 

    EDI is the electronic transfer of standardized business transaction between a sender and receiver computer, over some kind of private network or Value Added Network (VAN). EDI was developed to integrate information across larger parts of an organization's value chain from design to maintenance so that manufacturers could share information with designers, maintenance and other partners and stakeholders.

    E-commerce has provided us a medium to facilitate commercial transactions in an efficient manner. Companies have moved up in the value chain by adopting the e-commerce practices. It should not be forgotten that every adoption of a new technology and new process would mean new ‘costs’ and ‘risks’. That is, adoption may or may not be successful. If the adoption is successful, then it becomes and established business practice in no time. If the If the adoption is unsuccessful then it is likely that the process of adoption may take some time, as the ‘learning’ phase is still not over. The first phase of e-commerce threw up a new business nomenclature using various permutations and combinations of ‘Business’ and ‘Consumers’, like ‘Business-to-Business’ (B2B), ‘Business-to-Consumer’ (B2C), ‘Consumer-to-Business’ (C2B) and ‘Consumer-to-Consumer’ (C2C).

What about E-Business?

As with e-commerce, e-business(electronic business) also has a number of different definitions and is used in a number of different contexts. Today, major corporations are rethinking their businesses in terms of the Internet an its new culture and capabilities and this is what some see as e-business.


E-business is the conduct of business on the Internet, not only buying and selling but also servicing customers and selling but also servicing customers and collaborating wit business partners.

E-business includes customer service (e-service) and intra-business tasks.

E-business is the transformation of key business process through the use of Internet technologies. An e-business is a company that can adapt to constant and continual change.


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