In simple terms, what is meant by e commerce in the context of modern business and the Internet?

Difficulty: Easy

Correct Answer: Buying and selling products and services over the internet

Explanation:


Introduction / Context:
The term e commerce, short for electronic commerce, has become widely used as more and more businesses and customers engage in online buying and selling. It covers a range of activities such as online retail shops, digital services, and electronic marketplaces. This question tests whether you can give a clear, basic definition of e commerce that fits common usage in business and computer studies.


Given Data / Assumptions:

  • The term in focus is e commerce.
  • E commerce uses the Internet and electronic systems for transactions.
  • The options mention international goods, products not found in stores, buying and selling over the Internet, and products related to computers.
  • We assume typical examples such as online shops, digital marketplaces, and service platforms.


Concept / Approach:
E commerce refers to the buying and selling of goods and services using electronic networks, primarily the Internet. It does not require that goods be international or unusual; local businesses can engage in e commerce with nearby customers as well. It also is not restricted to computer related products; people buy clothes, books, groceries, and services online. The key part of the definition is that the transaction is conducted electronically over the Internet rather than in a traditional physical store. Therefore, the most accurate description among the options is buying and selling products and services over the Internet.


Step-by-Step Solution:
Step 1: Identify the core idea behind e commerce. It involves electronic transactions carried out online between buyers and sellers. Step 2: Evaluate option A (Buying and selling international goods). E commerce may include international trade but is not limited to it; local transactions also occur online. Step 3: Evaluate option B (Buying and selling products and services not found in stores). Many products sold through e commerce are also available in physical stores, so this is too restrictive. Step 4: Evaluate option C (Buying and selling products and services over the internet). This captures the essence of e commerce: online buying and selling of goods and services. Step 5: Evaluate option D (Buying and selling products having to do with computer). E commerce covers all kinds of products, not just computer related items. Step 6: Conclude that option C is the correct definition.


Verification / Alternative check:
Business and IT textbooks define e commerce as conducting commercial transactions electronically on the Internet. Common examples include online retailers, online banking, digital content sales, and service marketplaces. None of these definitions restrict e commerce to international trade or computer products only. Similarly, some businesses operate both online and offline, selling the same products in stores and on websites. This confirms that the core defining feature is the use of the Internet for buying and selling, as expressed in option C.


Why Other Options Are Wrong or Incomplete:
Option A (Buying and selling international goods): Describes international trade, which may or may not be electronic; e commerce also includes local online transactions. Option B (Buying and selling products and services not found in stores): Suggests that products must be exclusive to online channels, which is not true. Option D (Buying and selling products having to do with computer): Limits e commerce to computer related goods, ignoring the huge variety of items sold online.


Common Pitfalls:
Learners sometimes confuse e commerce with terms like e business or think it only applies to global marketplaces such as export or import sites. Others may believe that only new or special products count as e commerce offerings. To avoid confusion, focus on the method of transaction, not the type of product or geographic scope. Whenever goods or services are bought and sold through Internet based platforms, that activity falls under e commerce.


Final Answer:
E commerce simply means buying and selling products and services over the Internet.

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