Electronic commerce (e-commerce) is the use of electronic communication to do business. It may be used to carry out business-to- business or business -to-consumer transaction. The real benefit of e-commerce is not that it makes old processes work better, but rather it provides a means to break with tradition and create new ways of doing business. For example, using the internet will allow some businesses to remain small while building a larger turnover by reducing the cost of doing business.
The Internet is now a valuable communication tool which offers small business a great opportunity to market itself internationally and reach a global client base. It is estimated that most of the small businesses in INDIA are connected to the Internet.
The best e-commerce solution is dependent on the type of data trading partners need to exchange to run their businesses effectively. It is important to focus on the business process rather than the technical issues such as hardware and software. Different e-commerce tools are suited to different business objectives and different trading partners.
Benefits of E-Commerce