E-Commerce /E-Trade is the process of buying and selling goods creating market space between buyers and sellers through the internet.

E-Trade may operate according to the following procedure.
• Buyers and sellers meet through the internet.
• Organize trade transactions.
• Activities of buying and selling goods take place.
• Settle payments related to the transaction.
The businessmen, customers and the society benefit from e-trade.
Benefits to the businessman.
• Accelerates the transaction.
• Market expansion.
• Minimization of transaction cost.
Benefits to the customer.
• Greater opportunities to select goods.
• Ability to obtain what is ordered speedily.
• Comparatively low price levels of goods.
Benefits to the society.
• Higher standard of living.
• Opportunities to consume new goods.
• Possibility to co-ordinate trade transactions by connecting with different parties.
Limitations of e- trade.
• Difficulties in using the relevant instruments.
• Barriers to expansion.
• Problems related to security in use.

E-Trade operates in different ways.
• Business to Business (B 2 B)
Transactions between businesses through the internet.
• Business to customer (B 2 C)
Selling goods to the customer by the business through the internet.
• Customer to Customer (C 2 C)
A customer sells goods direct to another customer through the internet.
• Government to Citizen (G 2 C)