Simply put, e-commerce is the online transaction of business, featuring linked computer systems of the vendor, host, and buyer. Electronic transactions involve the transfer of ownership or rights to use a good or service. Most people are familiar with business-to-consumer electronic business (B2C). Common illustrations include Amazon.com, llbean.com, CompUSA.com, travelocity.com, and hotels.com.

E-commerce can be divided into:

• E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall"
• The gathering and use of demographic data through Web contacts
• Electronic Data Interchange (EDI), the business-to-business exchange of data
  e-mail and fax and their use as media for reaching prospects and established customers (for example, with newsletters)
• Business-to-business buying and selling (B2B)

Are You E-Commerce Ready?

Companies that have decided on how to portray their business online must assess whether they have the most efficient information technology (IT) solutions to execute their online exporting programs. IT embodies a range of computer systems and software applications for managing a firm's web site, as well as personnel records, back end databases, etc. With more and more cyber attacks on government and corporate sites, companies should invest in security technologies to protect themselves and their customers from identify theft and denial of service.

An IT assessment should answer the following questions:

• What is the firm’s current IT usage? Is it at capacity? What are the plans for additional ITinvestment to upgrade existing systems?
• What business applications are best suited to move on line for B2B or B2C electronic?
• What does the cost/benefit analysis of all possible projects involving IT show?
• What are possible current and future security issues and what is the action plan for correcting problems?

There are, of course, many other factors to consider in doing international e-commerce, such as executing orders and payment issues that have a special e-commerce perspective, which are are addressed in other parts of this site.