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What is Electronic Commerce?

Officially, electronic commerce is “Electronic Commerce is the paperless exchange of goods or services through the use of electronic data transfer”.

This term has been in use for dozens of years and was originated to describe the transfer of data between two companies through dedicated or dial up connections. It wasn’t until the advent of the public Internet that e-commerce became a household word. Today, the more typical definition of e-commerce is “To sell goods or services on the web.”

This type of e-commerce is definitely here to stay. Growth of Internet based sales is in double digits and the growth of Internet use by the public is still showing dramatic increases. The ease of placing an order online has brought the buying public to Internet sales. The technology may change but the market will remain.


In fact, if you currently have a retail location and don't have an e-commerce website you are probably loosing sales. Many people are using the Internet to locate and price products that will eventually be bought locally. Having your products online will also help promote your business locally.

The true benefits of the Internet as an electronic commerce medium are easy to delineate. The web allows almost instant change to your entire business structure, merchandise, pricing, marketing, promotions and sales process. In fact, the Internet will allow you to change all of this from customer to customer. Unfortunately this is only useful if you have a web site that will allow it to occur. You need sophisticated computer programs running your e-commerce site.

The complexity of finding someone to host your e-commerce site has also been reduced over the years. Your best bet is to host your e-commerce solution with the company you purchased the solution from. When you do this you can rest easy about functionality problems. It will not matter whether it is the software or the hosting solution… the same people are responsible for making it work.

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