E-commerce (sometimes called web-based commerce) is the term used to describe the activity of doing business on the Internet. It includes business-to-business, business-to-consumer, and even consumer-to-consumer transactions that involve the buying and selling of goods and services, the transfer of funds, and even the exchange of ideas. E-commerce includes functions such as marketing, manufacturing, finance, selling, and negotiations. The phrase can also refer to downloading software, accessing games, or downloading content such as journal articles and books.

Business-to-business transactions are commonly accomplished through Electronic Data Interchange (EDI). This protocol is now used by most Fortune 1,000 companies. EDI enables large organizations to transmit information over private networks; it has also found a role on corporate web sites (intranet).

Business-to-consumer e-commerce can provide customers with convenience and access to a wide range of goods and services, while allowing businesses to reach large or unique markets. Components...