Electronic commerce consists of the buying and selling of products and services via the Internet. It includes business-to-business, business-to-consumer, and consumer-to-consumer transactions. These transactions can include online retail sales, supplier purchases, online bill paying, and Web-based auctions. Electronic commerce utilizes a variety of technologies including electronic data interchange, electronic fund transfers, credit cards, and e-mail.
The term e-commerce is often used interchangeably with e-business. The common element is the effective implementation of business activities using Internet technologies. However, e-business is the broader, more encompassing strategy and related activities. In addition to retail sales it includes vendor-partner communication, electronic procurement, customer relationship management, data-mining, and numerous other business functions.