E-commerce refers to the buying and selling of products or services over electronic systems like the Internet. It allows people to conduct business without barriers of time or distance by purchasing or selling online at any time. Direct costs of online sales are lower than traditional retail as there is no human interaction. E-commerce is also ideal for niche products that have limited customers but can generate sales at a global scale online. While e-commerce provides a global market scope, it also faces limitations like security issues with credit card use, lack of in-person feedback, and high costs of bandwidth and servers.