Introduction to E-Commerce

Definition of e-commerce

Although there are many definitions and explanations of e-commerce, the following definition provides a clear distinction. The reader is advised to look at the recommended texts for their interpretations of the following:


• Electronic commerce, or e-commerce, is defined to be the process of businesses trading with other businesses and the formulation of internal processes using electronic links.


• Electronic business, or e-business, is a term often used interchangeably with e-commerce, but is more concerned with the transformation of key business processes through the use of internet technologies.



From your reading it should be apparent to you that electronic commerce is more than online shopping. A more generic definition of electronic commerce would include electronic funds transfers used by many banks as well as business to business communications using the internet, extranet and intranet networks.

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