Electronic commerce

Electronic commerce, commonly known as e-commerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well.

• Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions.

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
• The security of business transactions

Ecommerce in India:

India has an internet user base of over 100 million  users. The penetration of e-commerce is low compared to markets like the United States and the United Kingdom but is growing  at a much faster rate with a large number of new entrants . The industry consensus is that growth is at an inflection point  with key drivers being:

• Increasing broadband Internet (growing at 20%  MoM) and 3G penetration.
• Rising standards of living and a burgeoning, upwardly mobile middle class with high disposable incomes
• Availability of much wider product range (including long tail and Direct Imports) compared to what is available at brick and mortar retailers
• Busy lifestyles, urban traffic congestion and lack of time for offline shopping
• Lower prices compared to brick and mortar retail driven by disintermediation and reduced inventory and real estate costs