What is 'Electronic Commerce - ecommerce'

Electronic commerce (e-commerce) is a type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet. Electronic commerce operates in all four of the major market segments:

business to business,
business to consumer,
consumer to consumer and
consumer to business.

It can be thought of as a more advanced form of mail-order purchasing through a catalog. Almost any product or service can be offered via e-commerce, from books and music to financial services and plane tickets.

E-commerce has allowed firms to establish a market presence, or to enhance an existing market position, by providing a cheaper and more efficient distribution chain for their products or services.
When you purchase a good or service online, you are participating in e-commerce.
Some advantages of e-commerce for consumers are:

- Convenience. E-commerce can take place 24 hours a day, seven days a week.
- Selection. Many stores offer a wider array of products online than they do in their brick-and-mortar counterparts.

And stores that exist only online may offer consumers a selection of goods that they otherwise could not access.