What is e-commerce?

Electronic commerce or e-commerce refers to a wide range of online business activities
for products and services.1 It also pertains to “any form of business transaction in
which the parties interact electronically rather than by physical exchanges or direct
physical contact.”2
E-commerce is usually associated with buying and selling over the Internet, or conducting
any transaction involving the transfer of ownership or rights to use goods or
services through a computer-mediated network.3 Though popular, this definition is
not comprehensive enough to capture recent developments in this new and revolutionary
business phenomenon. A more complete definition is: E-commerce is the
use of electronic communications and digital information processing technology in
business transactions to create, transform, and redefine relationships for value creation
between or among organizations, and between organizations and individuals.4
International Data Corp (IDC) estimates the value of global e-commerce in 2000 at
US$350.38 billion. This is projected to climb to as high as US$3.14 trillion by 2004.
IDC also predicts an increase in Asia’s percentage share in worldwide e-commerce
revenue from 5% in 2000 to 10% in 2004