The letter “E” in e-commerce is a short form of electronics, and “commerce” implies business transactions. Thus, e-commerce means such a transaction in which sellers and buyers execute business exchange through the internet without exchanging documents or without meeting each other. This business is done through computer and internet.

Classification and processing of E-commerce transactions: 

1. Business To Business Transaction (B2B) – The business transaction done between two businesses is called B2B transaction. 

2. Business To Consumer Transaction (B2C) – The business transaction done between Business and Consumers is called B2C transaction. 

3. Consumer To Business Transaction (C2B) – The business transaction done between consumer to business is called C2B transaction. 

4. Consumer To Consumer Transaction (C2C) – The business transaction done between two consumers is called C2C transaction.

E-commerce has two aspects – Direct and Indirect. In Indirect aspect, the product is only information which is sent through the computer.

For example: 

A newspaper. Today, many newspapers are read through the internet only. In the same way, documents, books, mail, verbal messages, music, film, photograph, market prices, direction to withdraw or deposit money, etc. are mere information. They can easily be sent through the internet.

The second aspect is direct, which includes all those products which are not mere information. A trader can display his product to you on the internet. The transaction is executed through a computer and then the product is sent to the customer’s home. Advertisements are given, order for the product is given, and the shopkeeper can provide information about his product in any corner of the world, sitting back at home.

Now traders do not need to open their stores at various locations and also do not need to appoint agents. Reverse advertisements are also given freely, that is, the buyer can put such information on the internet that he needs a product of a certain quality or a certain range.