Simply put, e-commerce is the online transaction of business, featuring linked computer systems of the vendor, host, and buyer. Electronic transactions involve the transfer of ownership or rights to use a good or service. Most people are familiar with business-to-consumer electronic business (B2C). Common illustrations include Amazon.com, llbean.com, CompUSA.com, travelocity.com, and hotels.com.

E-commerce can be divided into:

* E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall"
* The gathering and use of demographic data through Web contacts
* Electronic Data Interchange (EDI), the business-to-business exchange of data
e-mail and fax and their use as media for reaching prospects and established customers (for example, with newsletters)
* Business-to-business buying and selling (B2B)

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