E Commerce, is about doing business electronically and encompasses many diverse activities both in the business-to-business market and in the business-to-consumer market.

Activities include electronic trading of goods and services, online delivery of digital content, electronic fund transfers, electronic share trading, commercial auctions, collaborative design and engineering, online sourcing, public procurement, direct consumer marketing, and after-sales service.It involves both products (e.g. consumer goods) and services (e.g. information services, financial and legal services).

Electronic commerce relate to commercial transaction of goods and services conducted between parties electronically mainly through open Internet based systems i.e. the parties interact electronically rather than by physical exchange or contact. A wide range of communication technologies including e-mail, EDI, Internet, Intranet and Extranet can be used to support electronic commerce.

Electronic commerce includes commercial transactions such as electronic trading of goods and services, on line delivery of digital content, electronic fund transfers, electronic share trading, electronic bills of lading, collaborative design and engineering, on line sourcing, public procurement, direct and consumer market. The potential for the application of electronic commerce will continue to expand.