What Is eCommerce? The Basics of Selling Online 

Key takeaways: 

• eCommerce is now the backbone of modern business. It helps companies reach customers worldwide, operate around the clock, and lower costs compared to physical stores. 

• Business models such as B2C, B2B, dropshipping, subscriptions and marketplaces give entrepreneurs flexible ways to earn revenue across different industries. 

• The future of eCommerce is shaped by AI-powered personalization, mobile-first shopping and social commerce, making online sales faster and more accessible. 

eCommerce has reshaped how we buy and sell, turning the internet into the world’s busiest marketplace. From ordering groceries on your phone to launching a digital storefront that reaches customers worldwide, selling online is no longer a niche but the standard. 

For business owners, startups, and solo entrepreneurs, eCommerce opens doors that traditional retail simply can’t match. It lowers costs, expands reach, and makes it possible to serve customers 24/7. But to take advantage of these opportunities, it helps to understand exactly what eCommerce is, how it works, and what it takes to get started. 

What is eCommerce? 

eCommerce (short for electronic commerce) is the buying and selling of goods or services over the internet. Anytime someone places an order online—whether for clothes, software, groceries, or a digital subscription—that’s eCommerce in action. 

What makes it different from traditional business is convenience and reach. Instead of relying on a physical storefront with limited hours and location, eCommerce allows businesses to operate online 24/7 and reach customers almost anywhere in the world. 

The growth of eCommerce has been rapid and steady. In 2025, global eCommerce is projected to account for 20.5% of total retail sales worldwide. This trend is only expected to accelerate as mobile devices, AI-powered shopping, and social platforms make it easier than ever to buy with just a few clicks. For entrepreneurs, that means the opportunities are bigger and the competition sharper than ever. 

What are the types of eCommerce? 

Not all online businesses follow the same model. eCommerce can take many forms depending on who’s buying and selling. Here are the main types: 

Model	Description	Examples	Best for
B2C (Business-to-Consumer)	A business sells directly to individual customers.	Amazon, Target, Zara	Retailers and brands selling physical or digital products to the public
B2B (Business-to-Business)	Companies sell products or services to other businesses.	Alibaba, Salesforce, HubSpot	Wholesalers, suppliers, software providers
C2C (Consumer-to-Consumer)	Individuals sell to each other through marketplaces.	eBay, Facebook Marketplace, Depop	Secondhand sellers, hobbyists, peer-to-peer exchanges
C2B (Consumer-to-Business)	Individuals offer goods or services to businesses.	Upwork, Fiverr, Shutterstock	Freelancers, content creators, influencers
D2C (Direct-to-Consumer)	Brands sell directly to customers without middlemen.	Warby Parker, Glossier, Dollar Shave Club	Startups and modern brands building direct customer relationships

eCommerce business models 

While eCommerce types explain who is buying and selling, business models describe how online businesses make money. Here are some of the most common approaches: 

Model	Description	Pros	Cons	Examples
Dropshipping	Seller lists products but doesn’t hold inventory; items are shipped directly from supplier to customer.	Low upfront costs, no need for storage space	Less control over shipping speed and product quality	Many Shopify stores, Oberlo merchants
Subscription services	Customers pay on a recurring basis (weekly, monthly, or yearly) for continued access to a product or service.	Predictable revenue, strong customer loyalty	Requires consistent value to prevent cancellations	Netflix, Dollar Shave Club, Blue Apron
Digital products	Products delivered instantly online (eBooks, music, courses, software, templates, etc.).	No shipping costs, unlimited scalability	High competition and piracy risks	Adobe Creative Cloud, Udemy, Spotify
Marketplace platforms	Multi-vendor platforms where different sellers list products, and customers shop in one place.	Built-in traffic and visibility	High competition and platform fees	Amazon, Etsy, eBay

What is an eCommerce website? 

An eCommerce website is the online home base where all buying and selling happens. It’s the platform that handles browsing, shopping, checkout, and payment, all in one place. 

Most eCommerce websites include: 

• Product catalog. Where customers can view and compare items or services 

• Shopping cart. A space to collect chosen products before checkout 

• Checkout process. Where buyers confirm orders, shipping details, and payment method 

• Payment gateway. Secure processing for credit cards, digital wallets, or other options 

You’ve probably used some of the most popular examples without even thinking about it: 

• Amazon, the world’s largest online retailer, where millions of products are available at the click of a button 

• Etsy, a marketplace for handmade and vintage goods from independent sellers 

• Nike, which sells directly through its branded online store and mobile app 

• Sephora, combining physical retail with a robust online storefront for beauty product 

No matter the niche, whether it’s a massive marketplace or a single brand’s store, a well-built website is the foundation of any successful eCommerce venture. 

How does eCommerce work: Step-by-step 

Every online purchase follows the same path, moving from discovery to delivery. Here’s how that journey usually looks: 

• Step 1. Browsing products 

• Step 2. Adding to cart 

• Step 3. Checkout process 

• Step 4. Payment processing 

• Step 5. Fulfillment and delivery 

Step 1. Browsing products 

The experience begins when a customer searches for what they want on Google, social media, or directly on a store’s website. For instance, typing “running shoes” into Google might lead them to Nike’s online store. Or typing “ice cream” into Google might lead a shopper to Ben and Jerry’s online store, where they can quickly filter by size, flavor or sugar-level. 

Here are some features that help customers browse your products better:  

• Search engines, ads, and social platforms direct shoppers to product pages 

• Categories, filters, and site search help narrow down options 

• Photos, descriptions, and customer reviews influence the decision to click “add to cart” 

Step 2. Adding to cart 

Once something catches their eye, the customer places it in a virtual shopping cart. This is the online version of holding items while browsing a physical store, but with added convenience such as: 

• Products can be added, saved for later, or added to a wishlist 

• Stores often suggest related or complementary products 

• Customers can review items before moving to checkout 

On Amazon, for instance, shoppers often see “Frequently bought together” bundles that encourage them to add more to their cart. 

Step 3. Checkout process 

After making their selections, the customer heads to the checkout. This step is critical. Too much friction here and the sale is lost. A good checkout makes buying effortless by: 

• Letting customers review their cart and see a final price breakdown 

• Collecting shipping details in a clear, simple form 

• Options for guest checkout or account creation are often provided 

A Shopify store, for example, might use a one-page checkout to reduce drop-offs and make buying easier. 

Step 4. Payment processing 

Once details are confirmed, the order is finalized through payment. Here are some tips that can help you achieve a hassle-free payment processing: 

• Offer multiple payment options like credit/debit cards, PayPal, or digital wallets like Apple Pay. 

• Consider regional preferences by including alternatives like bank transfers or cash-on-delivery where relevant. 

• Use recurring billing for digital products or subscriptions to handle ongoing payments automatically. 

Think of digital platforms like Spotify, where payments are processed automatically each month. 

Step 5. Fulfillment and delivery 

With payment complete, the seller takes over to make sure the order reaches the customer. This step is key for building loyalty. 

Physical products are carefully packaged, shipped, and tracked with real-time updates, while digital products are delivered instantly through download links or account access. Clothing brands, for example, often send tracking numbers by email so customers can follow their order until it arrives. 

If you’d like a deeper look at handling fulfillment, check out our blog on whether to manage it yourself or outsource. 

Benefits of eCommerce 

The advantages of selling online explain why so many businesses from solo creators to global brands are making the shift. Some of the biggest benefits include: 

• Global reach. A small brand can sell worldwide without opening physical locations. 

• Lower costs. Digital storefronts often save on rent, utilities, and overhead. 

• Scalability. It’s easier to add products, enter new markets, or handle peak demand with the right platform. 

• Convenience. Customers can shop anytime, anywhere, using laptops, tablets, or phones. 

Challenges of eCommerce 

Of course, growth doesn’t come without obstacles. Businesses entering the space should be prepared for challenges such as: 

• Heavy competition. Low entry barriers mean crowded markets, making differentiation essential. 

• Shipping and logistics. Returns, delivery delays, and costs can cut into margins. 

• Cybersecurity risks. Customer data and payment details must be protected against online threats. 

• Customer experience. Without face-to-face interaction, brands must rely on site design, support, and communication to build trust. 

eCommerce Trends in 2025 

The way people shop online keeps evolving, and businesses that adapt quickly stay ahead. In 2025 several key trends are shaping the future of eCommerce: 

• AI-driven personalization and automation 

• Mobile commerce growth 

• Social commerce and influencer-driven sales 

AI-driven personalization and automation 

Artificial intelligence is changing how stores interact with customers. From product recommendations to automated customer service, AI helps businesses deliver tailored experiences at scale. For example, platforms like Shopify are using AI to create smarter product suggestions and streamline inventory management. 

Mobile commerce growth 

Shoppers are relying on their phones more than ever. In fact, recent studies show that mobile commerce accounts for over 70% of eCommerce traffic in 2025. Apps, mobile-friendly websites, and one-click payment options like Apple Pay make buying from a phone as seamless as desktop shopping. 

Social commerce and influencer-driven sales 

Social media has become a storefront of its own. Platforms like Instagram, TikTok, and Facebook now allow users to browse and buy products without ever leaving the app. Influencers and content creators play a major role in driving these sales by building trust and showcasing products in action. 

As eCommerce grows across multiple channels, content marketing helps you reach more customers. Check out this beginner’s guide. 

How to start an eCommerce website  

Reading about eCommerce is one thing, starting your own store is another. The good news is that today’s tools make it easier than ever to launch. Here’s a step-by-step guide: 

• Step 1. Choose a domain name 

• Step 2. Pick hosting or a website builder 

• Step 3. Design your storefront and navigation 

• Step 4. Add products and descriptions 

• Step 5. Set up a payment gateway 

• Step 6. Secure your site (SSL, PCI compliance) 

• Step 7. Test checkout and launch 

Step 1. Choose a domain name 

Your domain name is the foundation of your online brand. It’s what customers will type into their browsers to find you, and often their very first impression of your business. A good domain should be easy to remember, reflect your niche, and feel trustworthy. 

Make sure to: 

• Keep it short, simple, and easy to spell. 

• Use keywords related to your business when possible (e.g., “freshroastcoffee.com”). 

• Check domain availability with a registrar. 

• Explore alternative extensions like .store, .shop, or .biz if your first choice is taken. 

Step 2. Pick hosting or a website builder 

Once you have your name, you’ll need a platform to put your website online. This decision determines how easy it will be to build, manage, and scale your store.  

You can choose a website builder for a fast setup with no coding, or go with WordPress + WooCommerce if you need more customization and scalability. Be sure to compare pricing, features, and support options before making your decision. 

Step 3. Design your storefront and navigation 

Your website’s design is the equivalent of a physical store’s layout and window display. It guides customers, builds trust, and influences buying decisions. A clean, mobile-friendly design helps shoppers find what they need quickly. 

Here’s some tips for designing your storefront and navigation: 

• Pick a modern, responsive website template that looks good on all devices. 

• Organize products into categories and add filters or a search bar for convenience. 

• Use your homepage to highlight bestsellers, promotions, or seasonal products. 

• Add trust signals like SSL badges, return policies, and customer support details 

Step 4. Add products and descriptions 

Your product listings are where the sale happens. It’s not enough to simply upload photos and a price; your descriptions need to convince customers why your product is the right choice. Strong visuals and persuasive copy help build confidence. 

You can do it by: 

• Uploading multiple high-quality images for each product 

• Writing benefit-driven descriptions (e.g., “keeps you cool during workouts” rather than “made of polyester”) 

• Including details like sizing, materials, or compatibility to reduce returns 

• Adding reviews, testimonials, or ratings to provide social proof 

Step 5. Set up a payment gateway 

The checkout process is often the last hurdle before a sale. If it’s too complicated or feels insecure, customers will abandon their carts. That’s why setting up a smooth, trustworthy payment system is critical. 

You need to: 

• Offer multiple payment methods (e.g., credit cards, PayPal, Apple Pay, Google Pay) 

• Choose a PCI-compliant payment provider to secure customer data 

• Keep checkout forms as short and simple as possible 

• Test the payment process on both desktop and mobile to ensure it’s seamless 

Step 6. Secure your site (SSL, PCI compliance) 

Trust is everything in eCommerce. Customers won’t hand over payment details if your site feels unsafe. Securing your store with encryption and compliance standards is non-negotiable. 

Keep safe by: 

• Installing an SSL certificate to enable HTTPS and protect customer data 

• Verifying your payment system meets PCI compliance standards 

• Keeping your software, plugins, and themes updated to prevent security issues 

• Displaying visible trust badges and clear policies to reassure buyers 

Step 7. Test checkout and launch 

Before you officially open your doors online, you need to make sure every part of your store works smoothly. Testing the checkout, links, forms, and payment process helps customers shop without any problems. 

Here’s how: 

• Place test orders on different devices and browsers 

• Confirm that taxes, shipping options, and email confirmations work properly 

• Ask friends or colleagues to test the process and share feedback 

• Once everything runs smoothly, announce your launch and start promoting your store 

Start your eCommerce journey today 

eCommerce is now at the center of how businesses grow. Whether you’re selling physical products or digital services, an online store gives you global reach, flexibility, and 24/7 access to customers. For entrepreneurs, the real question isn’t if you should start—it’s when. 

Getting started is simpler than it looks. With Network Solutions, you can register your domain, set up hosting, and build a secure online store, all with tools designed to help you launch quickly and grow with confidence. 

Build your eCommerce site in minutes with Network Solutions. 

Frequently asked questions