Electronic commerce refers to an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunications technologies and digitized offerings. any activity that uses electronic commucation in the inventory, promotion, distribution, purchase, and exchange of products and services. two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. electronic storefronts that focus on converting an online browser into an online, catalog, or in-store buyer. electronic storefronts that advertise and promote a company's products and services and provide information on how items can be used and where they can be purchased