Electronic commerce, commonly known as e-commerce, consists of the buying and selling of either products or services over electronic systems such as the internet. The amount of trade conducted electronically has grown dramatically since the wide introduction of the internet. A huge variety of commerce is conducted in this way; including things such as electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange (EDI), automated inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the world wide web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well.

A small percentage of electronic commerce is conducted entirely electronically for "virtual" items such as access to premium content on a website, but most electronic commerce eventually involves physical items and their transportation in at least some way. E-commerce or electronic commerce is generally considered to be the sales aspect of e-business.

JSA’s website specialist Andy Crathorne had this to say on the subject:
“Taking the plunge into e-commerce can seem daunting at first when confronted with delivery, returns, staffing, and legal issues. Which products do we sell? And, how much should we charge for delivery? Are both common questions I'm asked. It's important to stay focused on the task in hand and avoid trying too much too soon. Few overheads and a global marketplace make e-commerce a viable revenue generator for any retailer.

For a retailer, there are two main options when commissioning an e-commerce website. You can create a dedicated online store which just focuses on selling products with basic company information, or alternatively provide e-commerce functionality into an existing website. For the latter, it's important to get the balance right between selling products and providing visitors with easy access to important company information, such as contact details and opening times. The last thing you want to do is alienate your regular customers by focusing too much on selling online, and vice versa, you want to make it crystal clear that visitors can purchase the products they see online.

Finally, there is no point in building an e-commerce website unless you plan to invest in marketing. The concept is simple, the more visitors you have, the more sales you will get. One of the most effective forms of online marketing is pay-per-click (PPC) advertising on search engines. Other forms of online marketing which are worth investigating are e-newsletters and search engine optimisation. After just a matter of weeks you will be able to see how well your online store is performing and make any tweaks to improve performance. Using the readily available statistical packages it's easy to see exactly how many customers are visiting, the products they are looking at, and ultimately gauge the return on investment.”

The popularity of social networking is soaring as the number of Facebook and MySpace fans grows by the day. Naturally retailers want to exploit this to the maximum by incorporating elements of this into their own sites. Earlier this year Tesco launched its interactive baby and toddler club, and already subjects such as weaning and crying babies have and are still attracting hundreds of visitors. Both Waitrose and Sainsbury have launched similar online community sections closely linked to the retail sites.

Etail is becoming an essential selling tool. For a guide to our designers favourite sites check out our Inspiration article. Happy etailing!