Electronic commerce is the process by which businesses and consumers buy and sell goods and services through an electronic medium, the majority of companies have an online presence. In fact, having the ability to conduct business through the Internet has become a necessity, everything from food and clothes to entertainment and furniture can be purchased online.
E-commerce allows customers to overcome geographical barriers and allows them to purchase products anytime and from anywhere. Online and traditional markets have different strategies for conducting business. Traditional retailers offer fewer assortment of products because of shelf space where, online retailers often hold no inventory but send customer orders directly to the manufacture. The pricing strategies are also different for traditional and online retailers. Traditional retailers base their prices on store traffic and the cost to keep inventory. Online retailers base prices on the speed of delivery.