E Commerce is the use of the internet for the buying and selling of goods and services. Electronic commerce or e-commerce for short can be traced back to the electronic transfer of funds. Since then it has grown and is now used extensively. The best example of ecommerce is the purchasing of an item on the internet using one’s credit card. The money is transferred to the retailer and the purchaser receives their order by mail.Like any business, E Commerce has its advantages and disadvantages.

Advantages:
• Global Reach: This is the greatest advantage of electronic commerce. It enables businesses and individuals to reach a global market. Businesses are not restricted by geographical boundaries and can cater to local, national as well as international markets. Time restrictions can also be overcome with electronic commerce. Customers can shop no matter the time of the day and this increases sales and profits.

• It gives people the opportunity to look for the best deals. A person can research the product he or she wishes to purchase and may need the product at a much cheaper price. Sometimes the original manufacturer can be located and the product can obtained at large discount. Customers also get a chance to read reviews posted by previous shoppers before deciding on the buy.
• E Commerce reduces the costs of a business by reducing the costs associated with marketing, customer care and inventory management. It allows companies to market their products to a large consumer base at a significantly reduced cost. This savings in costs means more profit and better customer care.

Disadvantages:
• Many people still do not have access to the internet due to poor conditions or lack of knowledge. Most people do not trust the impersonal financial transactions done on the internet and do not use the internet for any financial transactions.
• People prefer to shop for perishable items like food in the conventional way rather than use the internet. The time required for delivering such goods is the undoing of it. A great investment is required to capture the market in perishable goods and the investment does not guarantee success.

The advantages of E Commerce outweigh the disadvantages and therefore so many businesses use ecommerce. It is being constantly modified to suit the needs of its customers and this is helping to build trust in the system. More and more people are using ecommerce daily.

A business of any size can compete in the global marketplace through the Internet. Use of the internet has exploded during the last few years in both the consumer and business-to-business markets. There is no doubt of its impact on business in the twenty first century, because it has been causing strong influences on modern business.

Over 25 percent of all business-to-business purchases are placed through some type of internet connection. In 2004, 10 percent of business -to-business advertising dollars were spent on the internet. The total amount spent was $8.7 billion. About 54 percent of the e-mail users have responded to an e-mail advertisement. Almost half purchased a product. Internet retail sales account for almost 2.5 percent of all retail sales.

Business-to-business marketers were among the first companies actually to make profits using the internet. In today’s marketplace, the web is becoming the communication tool of choice for many business-to-business companies. The internet provides opportunities for communication, customer service, sales support, collaboration and e-commerce.

Some companies use the internet for every aspect of their business including taking orders, inventory control, production scheduling, communications plans, sales programs, service departments and support programs. The change from traditional communication channels such as salespeople, telephone and snail mail to the internet and e-mail happened quickly in some companies and more slowly in others.

Now, convincing top management of the benefits of internet marketing is essential. There is still a lack of internet expertise in the business community. As a result, many companies are turning to marketing agencies for guidance.

In summary, Internet has a great influence on various businesses in today’s world. Any business will also get involved in the Internet sooner or later. Because it is a good way so that businesses can present their products and services to the world.