Types of e-commerce
- B2C (business to consumer): a company selling to consumers, such as an online clothing store.
- B2B (business to business): companies selling to other companies, such as a wholesaler’s order portal.
- C2C (consumer to consumer): private people selling to each other on sites like eBay or Blocket.
- D2C (direct to consumer): brands selling their own products without going through retailers.
E-commerce examples
- A bakery that takes orders for cakes on its own website.
- A shop that sells through a marketplace such as Amazon.
- A software company that sells subscriptions online.
- A gym that sells memberships and class bookings through an app.
Ways to sell online
- Your own online store, on a platform such as Shopify or WooCommerce. See e-commerce website.
- Marketplaces such as Amazon.
- Social commerce on Instagram, Facebook and TikTok.
What an e-commerce business needs
- A store or listing with clear product pages, photos, prices and delivery information.
- Payments through a payment provider, with a secure connection (HTTPS).
- Fulfilment: stock, packing, shipping and returns.
- Customer service before and after the sale.
- Legal basics: terms of sale, a privacy policy, consumer rights such as the right to return goods, and tax rules. These vary by country, so check yours.
Marketing an online store
The main channels are SEO for category and product pages, Google Shopping and search ads, social media advertising, and email marketing to bring customers back. Measure the conversion rate, the customer acquisition cost and the return on investment of each channel, and recover lost sales with abandoned cart reminders and remarketing.
Advantages and challenges
- Advantages: a market that is not limited by location, opening hours around the clock, lower fixed costs than a shop, and detailed data on customers.
- Challenges: strong competition, shipping and returns costs, trust (buyers cannot touch the product), and the cost of getting found.
E-commerce FAQs
What is the difference between e-commerce and e-business?
E-commerce is the buying and selling itself. E-business is wider and also covers running a company online, such as logistics, internal systems and customer relations.
Is dropshipping e-commerce?
Yes. It is an e-commerce model where the seller does not hold stock and a supplier ships the order. See dropshipping.
How do I start an e-commerce business?
Choose a product and audience, pick a platform, set up payments and shipping, write clear product pages and plan how customers will find you.