Which statement best defines e-commerce?

The definition of e-commerce encompasses a wide range of activities related to conducting business online, which includes not only the transactions involved in purchasing and selling products but also the marketing strategies that promote these transactions. E-commerce is fundamentally about leveraging technology to facilitate business operations and interactions electronically, making it more than just simple buying and selling.

The business model referred to in the correct answer incorporates various forms of online transactions, such as retail sales, auctions, and services provided over the internet. Additionally, it includes digital marketing practices aimed at reaching consumers or businesses to promote products or services, which expands the traditional concept of commerce into the digital realm.

The other options are too narrow or specific to accurately represent the broader scope of e-commerce. For example, limiting e-commerce to only digital products overlooks the significant portion of online business that involves physical goods. Similarly, confining e-commerce to social media platforms ignores other critical aspects of online commerce, such as e-commerce websites and mobile applications. Finally, stating that e-commerce is a method of selling products only in physical stores completely contradicts the essence of e-commerce, as it fundamentally involves online transactions, not offline sales.