Electronic commerce or e-commerce is a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet.. It covers a range of different types of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations and allows consumers to electronically exchange goods and services with no barriers of time or distance.The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.EDI requires each supplier and customer to set up a dedicated data link (between them), where e-commerce provides a cost-effective method for companies to set up multiple, ad-hoc links and led to the development of electronic marketplaces where suppliers and potential customers are brought together to conduct mutually beneficial trade.