A customer browses products on a phone, adds items to a cart, pays by card, and receives the order at home a few days later. That entire process is e-commerce. It is the buying and selling of goods and services over the internet.

E-commerce encompasses pure online retailers as well as the digital channels of traditional stores. Success factors include site usability, product information, payment security, fulfillment speed, and return ease. Mobile commerce now accounts for a large share of transactions. Data collected online enables personalization at a scale impossible in physical stores.

The growth of e-commerce has forced every retailer to reconsider inventory placement, pricing transparency, and customer service across channels. Pure-play online companies and omnichannel operators compete intensely on convenience and reliability. For many product categories, e-commerce has become a primary rather than secondary route to the customer.

• Buying and selling conducted over the internet
• Includes pure online and digital channels of physical retailers
• Depends on usability, fulfillment, and trust
• Enables large-scale personalization