You've probably been hearing about 'E-Commerce' lately...but may have wondered

what exactly the term means. Here's a basic definition:

"Any form of business transaction in which the parties [e.g. businesses or consumers] interact
electronically rather than by physical exchanges or direct physical contact."

E-commerce is a process in which changing needs and new technologies come

together to revolutionize the way in which business is conducted. So what are the specific functions of E-Commerce? Here are some examples of its roles in the economy:

- enabling and supporting changes on a global scale

- allowing companies to be more efficient and flexible in their internal operations, to work more closely with their suppliers, and to be more responsive to the needs and expectations of their customers

- enabling companies to select the best suppliers regardless of their geographical location and to sell to a global market.

What are some specific applications of E-Commerce?

- One special case of electronic commerce is electronic trading, in which a supplier provides goods or services to a customer in return for payment. A special case of electronic trading is electronic retailing, where the customer is an ordinary consumer rather than another company.

- Other examples are internal transactions within a single company, and the provision of information to an external organization without charge.