E-commerce
E-commerce, or electronic commerce, is the buying and selling of products or services over the internet. It covers the entire online transaction process, from presenting an offer and placing an order to payment, delivery, and after-sales support.
E-commerce can involve physical products, digital content, services, subscriptions, and bookings. Sales may take place through an online store, marketplace, mobile app, or social media platform.
How does e-commerce work?
E-commerce relies on a system that allows customers to explore an offer, select a product, and complete a purchase. A typical online store includes:
- a product or service catalog;
- search and filtering tools;
- a shopping cart;
- a checkout process;
- online payment methods;
- shipping integrations;
- order and inventory management;
- analytics and marketing tools.
Online stores can be built with platforms such as WooCommerce, OpenCart, or solutions offered through the SaaS model.
E-commerce business models
The most common e-commerce models include:
- B2C – a business selling directly to consumers;
- B2B – transactions between businesses;
- C2C – sales between individual consumers;
- C2B – an individual providing products or services to a business;
- D2C – a manufacturer selling directly to customers without traditional intermediaries.
E-commerce vs. marketplace
An independent online store gives the seller greater control over its brand, offer, data, and customer experience. A marketplace provides ready-made infrastructure and access to an existing customer base, but it usually charges fees and requires sellers to follow its rules.
A business can use both channels at the same time by synchronizing products, prices, inventory, and orders.
Benefits and challenges of e-commerce
E-commerce allows businesses to sell around the clock, reach customers in different locations, and automate many processes. It also makes it possible to analyze website traffic, customer behavior, and sales performance.
Running an effective online store requires suitable technology, secure data processing, reliable logistics, legal compliance, and consistent customer acquisition. Website speed, an intuitive checkout process, digital accessibility, and mobile usability are also important.