E-commerce and Shopping Online

By 2002, e-commerce (electronic commerce or shopping online) has become widely accepted by Internet users. Today, you can purchase everything from airline tickets to software to designer clothing on the Internet. Businesses which sell items on the Internet are called e-tailers. Shopping online is not only convenient for many people, but often times Web sites offer special discounts which are only available off the Internet.

E-commerce can be grouped into three types

1. Online storefronts: Through online storefronts, you can purchase just about any item that you can buy in a "bricks and mortar" store. You browse an online catalog, find the item you want, place your order, enter a credit card for payment, and your purchases are shipped directly to your home or office. Amazon.com is probably the best known online storefront.
2. Auctions: Online auctions allow you to bid on items offered for sale. Instead of purchasing an item for a set price, you compete with other people who are interested in the same item. Whoever bids the highest, wins the auction. By far the most popular and successful online auction site is Ebay. Ebay does not actually sell items. Instead, it facilitates the interaction of potential buyers and sellers through the auction site.
3. Electronic payment services: With the growing popularity of auction sites came the need for people to be able to pay for items securely using a credit card without going through a storefront. Electronic payment service companies like Paypal and Billpoint allow you to send money to sellers via a credit card or checking account electronically. Today, these companies are expanding their services to offer a secure payment process for all types of online purchasing.