E-commerce refers to online trading. It not only refers to trading of physical products it also includes services where the customer makes online payments for services
rendered .Mostly the retail stores selling products directly to the public via E-commerce website. However there are also a proportion of online stores dedicated to business-to-business
(B2B) sales or wholesale activity. So in E-commerce website fund transfer is done electronically, hence it is called E-commerce.
How does e-commerce work?
E-commerce nature is varied in the way it works depending on the products and services. E-commerce normally works as below:
Consumers after choosing products or services pay electronically on the website (online card transactions) or use a third party payment gateway. The order or payment are received by the business owner or merchant and gets fulfilled (delivered by post, booked in for services etc)
Payments are done in a secured mode keeping the card details or personal information as fully secured data.