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What Is E-Commerce?

E-Commerce (electronic commerce) is the use of electronic communication from business to business. It involves trading products or services over the internet or another computer network. E-commerce is generally used because it is faster than normal commerce, and can be quite efficient if done correctly

E-Commerce Solutions

These are 3 main types of E-Commerce:

  • B2B (Business to Business) is where one business trades information with another. B2B transactions make up over 90% of E-Commerce transactions.
  • B2C (Business to Consumer) is where a business has a product/service available, and a consumer buys it. This is done solely through the Internet.
  • B2E (Business to Employee) (also to Suppliers and Contractors) is better known as an Intranet.
  • The Intranet is a web portal to help an organisation send information to its employees. This is normally accessed through the organisation's network.


  • B2B makes up over 90% of all E-Commerce transactions.
  • Over 80% of small Australian businesses are connected to the internet.
  • In a 2007 survey, nearly 50% of Americans had bought something online.
  • In a 2008 survey, 78% of Internet users agree that online shopping is convenient, and 68% say that "it saves time."
  • There has been a dramtic growth in the amount of Internet based sales, and it is still rising.

Advantages of E-Commerce:

  • Available 24/7/365: The internet never closes, so neither does your online store.
  • Larger Reach: People from all over the world are able to access websites, so you'd have a larger possible customer base.
  • Lower Costs: Without a physical store, you don't have to pay as much for things like labour, advertising and paperwork.
  • Faster: E-Commerce saves time, so people are more likely to buy online, and it saves you time on processing and recording orders too.