Electronic Commerce is defined as the business activities that are conducted on internet and World Wide Web by using electronic data transmission.

It includes activities both in business to business market and business to consumer market. It includes trading of goods and services, commercial auction, online sourcing, direct consumer marketing, after sales service and so on.

Introduction to E-commerce includes wide range of topics but here we’ll discuss it in brief.

Elements of E-Commerce:

Following are the elements of e-commerce:

· Business-to-Business(B2B)

· Business-to-Consumer(B2C)

· Consumer-to-Consumer(C2C)

· Business to Government

With the emergence in IT, it is possible to do business over the internet and develop linkages with the companies for better business strategies. B2C has gained much popularity then any other element of e-commerce. There are many websites but the most strong e-commerce companies are still alive such as www.amazon.com,www.ebay.com and www.expedia.com.

For example Expedia.com is the website that provides online market place for the travelers to research, plan and purchase travel services. It appears to be the top player in the online travel industry.

B2C is gaining much popularity and its revenues are expected to grow from USD 65 billion in 2001 to USD 269 billion by 2005.Both the online trading and online customers are increasing 50% per year.

Example of E-Commerce:

We can take an example of priceline.com. It is considered to be the most resourceful and creative “business model” for business. It is considered to be the pioneer of new type of e-commerce known as “demand collection system” which enables consumer to save money on a wide range of products and increase their revenue.

It collects costumer price demand for each product or service and communicates that demand directly to the interested seller and to their existing private databases.

Advantages of E-commerce:

Following are the advantages of e-commerce:

· The biggest advantage of e-commerce is the cost reduction. There would be no charges in order taking and sales support processes.

· Electronic commerce increases sales opportunity for a seller.

· Electronic commerce increases purchase opportunity for the buyer.

· Electronic commerce can increase sale and decrease the cost.

· Web creates virtual communities for services and products.

· It allows you to make the customers throughout the world and it enhances your business.

Disadvantages of E-Commerce:

Following are the disadvantages:

· There are few business processes that are not possible to be implemented through electronic commerce.

· Legal activities and face cultural activities can’t be conducted through electronic commerce.

· It is difficult to apply return-on-investment through electronic commerce.