E-commerce involves conducting business transactions electronically over the internet. It allows for global distribution of information, expands markets beyond geographic boundaries, and reduces costs. E-commerce is classified into business-to-business (B2B), business-to-consumer (B2C), consumer-to-business (C2B), and consumer-to-consumer (C2C) models. Benefits to consumers include lower prices due to competition, better information about products, and reduced transaction and search costs.