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Electronic commerce consists of the buying and selling of products and services through electronic systems, majorly the Internet and other computer networks. It also involves the entire online process of developing, ordering, marketing, distributing, selling, delivering, servicing, and paying for products and services. In the recent past, electronic trading has grown tremendously with widespread adoption and use of Internet. This is because the use of internet allows better and faster connectivity among individuals and companies and has made the transaction process shorter than before. Ecommerce and e-business involve electronic funds transfer and electronic data interchange. Ecommerce also involves supply chain management, Internet marketing, and inventory management systems, through the World Wide Web for virtual items. PepsiCo is one on the companies that have adopted the use ecommerce in the recent past. The company has embraced internet advertising to reach more customers through collaborating with Yahoo—, which is one of the most popular internet sites—to endorse PepsiCo’s web sites only (Business Day, 2000). This report revolves about the implementation of ecommerce by PepsiCo and the impacts of the changeover. The business model that was in use before the PepsiCo’s implementation of ecommerce was offline business. Hence, this report analyzes possible strategies that need be employed for successful implementation of the e-business, in addition to examining the reasons that led to PepsiCo’s successful change over to ecommerce.

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