Legal Definitions - e-commerce

E-commerce, short for electronic commerce, refers to the practice of conducting business transactions, such as buying and selling goods or services, entirely or primarily over computer networks, most commonly the internet.

This includes all aspects of online commercial activity, from ordering products and services to processing payments and managing customer interactions, all facilitated by electronic means rather than traditional physical storefronts or paper-based exchanges.

• Example 1: Online Retail Purchase

  A customer browses a clothing brand's website, selects a new jacket, adds it to their virtual shopping cart, and completes the purchase by entering their credit card details and shipping address online. The jacket is then shipped directly to their home.

  Explanation: This illustrates e-commerce because a consumer is buying a physical good from a business, with the entire transaction – from product selection to payment – occurring electronically over the internet.

• Example 2: Digital Service Subscription

  A small marketing agency decides to use a cloud-based graphic design software. They visit the software provider's website, choose a monthly subscription plan, and pay using an online payment gateway. They immediately gain access to the software through their web browser.

  Explanation: This is an example of e-commerce as a business is purchasing a service (software access) from another business, with the transaction and the delivery of the service itself being entirely electronic and internet-based.

• Example 3: Business-to-Business (B2B) Procurement

  A large office supply company uses a secure online portal provided by a paper manufacturer to place bulk orders for printer paper, envelopes, and other stationery. The order is processed digitally, and an electronic invoice is generated and sent to the office supply company's accounting system.

  Explanation: This demonstrates e-commerce in a business-to-business context, where two companies conduct their purchasing and sales activities for goods through a dedicated online platform, streamlining their supply chain electronically.