Electronic commerce is the selling and buying of goods and services, through the internet. E-commerce, as it is commonly referred to, entails business performed over other computer networks as well. This is a growing industry as it enables consumers to conduct payment transactions through an online platform in a safe and secure manner.
The scope and features of e-commerce
Retailers and merchants from across the globe engage in e-commerce as it allows them to cater to clients located anywhere in the world. The reach of the internet is not underestimated by retailers as they opt to obtain, implement and integrate online payment solutions to their company websites. Through e-commerce, they are able to transact payments for goods and services without the physical presence of either party.
E-commerce incorporates the following methods of business activity:
- Electronic funds transfer
- Supply chain management
- Internet marketing
- Online transaction processing
- Electronic data interchange
E-commerce uses the internet as a medium to conduct business but it is not limited to this option, it can offer business transactions though Extranet, Electronic Data Interchange network or through electronic mail system. It benefits companies in providing various online payment transaction options to their customers.
Conducting business through the internet has been hugely successful amongst retailers as it offers a number of benefits to companies offering online payment solutions. Some of these include the following:
- Fast and convenient payment transactions
- Instantaneous funds transfer
- Highly secure and safe method of making payments
- Negates risk of fraud
- Increases accessibility as it has worldwide reach