With the overall growth of Internet, e-commerce obtained great height and more achievements.The e-commerce is nothing but buying and selling goods through online and it is more flexible one and it becomes an inevitable one.With Electronic commerce or e-commerce, two parties to perform transactions that involve goods or services using electronic media. The term electronic commerce is shortened to e-commerce, is equivalent to shopping on the web.E-commerce is not new, Banks have used electronic funds transfers, also called wire transfers, for decades. So many years ago, electronic data interchange occurs. EDI occurs, when one business transmits computer readable data in a standard format to another business.In 1960s many businesses understood the need for EDI, to delivery of goods and contained same set of information for each transaction that occurred. Initially few errors were in electronic transfer for of data.Once we understood traditional commerce, then we will be in a position how to apply technology to improve the e-commerce business.