This technology has become the inseparable part of organizational integration, marketing, HRM, and customer retention. Hence, the firms with non-viable features are most likely to fail in the current business environment. Hundreds and millions of customers today rely on internet, either to purchase something or to collect information about various products and services they require. This fast growing trend is fondly referred to ‘e-commerce’ which forces entrepreneurs to modify their business in accordance with the market changes. In order to be competitive, organizations need to have instant and accurate access to information about their own resources and assets. Since the potential of the internet, as an integral tool of a company’s Enterprise Resource Planning (ERP) and decision making has been proven, companies heavily depend on the web based technology. This report will examine the main features of e-commerce, changing business models, features of digital markets and digital goods, various internet business models, principal payment systems in e-commerce, and new developments in the area etc.
If a company runs its business functions electronically, the method can be called e-commerce. However, the type of e-commerce that a firm adopts depends on its organizational structure, size, business area, target segments, and many other factors. In common, e-commerce is effective between business and business, between business and consumers, between business and employees, between consumer and consumer etc. Regardless of the category of e-commerce, there is clear indication of more consumers and businesses entering the stream of electronic commerce. For instance, in the United States alone 2 percent of all retail sales revenue is generated from e-commerce; and coming days would witness tremendous upside growth in this area (Lauden & Lauden, J. P. 2007, p. 303).
The term B2B refers to the sales and transactions between business groups which