What is eCommerce? A Beginner’s Guide to Online Selling 

eCommerce, short for electronic commerce, is just a fancy way of saying “buying and selling things online.” Whether it’s someone ordering a pair of shoes from a website or a small business selling handmade candles through Instagram, it all counts as eCommerce. 

If you’re new to the idea, don’t worry. You don’t need a tech background or a big budget to get started. In this article, we’ll break down what eCommerce is, how it works, and the different ways people are selling online today. 

What is eCommerce? 

eCommerce, or the process of buying and selling on the internet, has generated approximately $5.82 trillion in revenue in 2023. 

What makes it appealing is its ability to allow buying stylish sneakers or brand-new phone with just a few clicks online. It’s a big change from the early days back in the 1990s, when people first started buying books online. It’s come a long way since then. 

So, what made eCommerce rise from then on? Well, there are some good reasons. First, it lets you sell your stuff to a global audience. Second, your online store never closes; it’s open 24/7. And third, it’s flexible. You can easily change what you’re selling to match what people want. 

In modern times, eCommerce is like the base of business. It’s important because most people shop online. Want to know why having your own online store matters? Check out our article on the benefits of starting an online store. 

How does eCommerce work? 

At its core, eCommerce is a simple process but there’s a lot happening behind the scenes to make it feel seamless. Here’s a step-by-step look at how online selling works from the moment a customer visits a site to the moment they receive their order: 

1. A customer visits an online store or marketplace. This could be a dedicated website, a social media shop, or an eCommerce platform like Amazon. They might find the store through a Google search, an ad, or a social media post. 
2. They browse products and place orders. The customer scrolls through listings, checks out product details, maybe reads a few reviews—and if something looks good, they add it to their cart and hit “buy.” 
3. Payment is processed electronically. The store uses a secure payment gateway (like PayPal, Stripe, or Square) to handle the transaction. The customer’s payment information is encrypted to protect their data. 
4. The seller receives and fulfills the order. Once payment goes through, the seller gets a notification and prepares the product for delivery. If it’s a digital product, delivery might happen instantly. If it’s physical, the seller ships it out. 
5. The customer receives the product and may leave a review. After the product is delivered, customers often get a follow-up email asking for feedback or a review—which helps build trust for future shoppers. 

What powers the eCommerce process? 

Behind every smooth transaction, there are systems working together: 

• eCommerce platforms provide the storefront and tools to manage products. 
• Payment processors make sure money changes hands securely. 
• Order and inventory management tools help sellers track what’s in stock and what needs to be shipped. 

These pieces fit together to create the kind of smooth shopping experience we’ve all come to expect online. 

Common types of eCommerce 

eCommerce isn’t a one-size-fits-all model. Each type serves a different purpose and understanding the differences can help you figure out where your business fits in. 

Business-to-consumer (B2C) 

This is the most common and widely recognized type of eCommerce. In B2C, businesses sell products or services directly to individual customers. 

Real-life examples: 

• Amazon.com. Sells everything from books to electronics to groceries. 
• Nike.com. Offers sneakers, clothing, and accessories straight to consumers. 
• Netflix. Delivers digital entertainment (subscriptions) to individual users. 

B2C transactions tend to be quick and low in cost compared to other models. Customers browse products, compare prices, and often make decisions within minutes. Most online shopping you do falls into this category. 

Business-to-business (B2B) 

In the B2B model, one business sells products or services to another business. These transactions typically involve larger quantities, longer sales cycles, and often require a customized approach. 

Real-life examples: 

• Alibaba.com. A global marketplace where suppliers sell bulk goods to retailers. 
• Salesforce. Provides customer relationship management (CRM) software to businesses. 
• HubSpot. Offers marketing and sales tools for companies of all sizes. 

B2B sellers often operate behind the scenes, providing raw materials, software, or services that help other businesses run. 

Consumer-to-consumer (C2C) 

C2C platforms let individuals sell directly to other individuals, often through a third-party marketplace. 

Real-life examples: 

• eBay. People can list new or used items for auction or direct sale. 
• Facebook Marketplace. A local platform for individuals to sell goods to others nearby. 
• Poshmark. The platform focuses on fashion resale between consumers. 

C2C platforms help people turn unused or handmade items into extra income. However, because there’s often no formal business structure, trust and security features (like buyer protection) are key. 

Consumer-to-business (C2B) 

In this less traditional model, individuals offer products or services to businesses—flipping the typical buyer-seller dynamic. 

Real-life examples: 

• Upwork. Freelancers offer their skills (like writing, design, or development) to businesses. 
• Shutterstock. Photographers upload images that companies can license. 
• Influencer marketing. Social media influencers promote a brand in exchange for payment or perks. 

The C2B model is a huge part of the gig economy and creative economy. Itempowers individuals to monetize their skills and content directly. 

eCommerce business models 

There are several different ways to run an online business, each with its own structure, strengths, and trade-offs. Here’s a closer look at the most common eCommerce business models, along with their pros and cons. This will help you figure out what fits your goals. 

Retail/Direct-to-consumer (DTC) 

In this model, a business sells products directly to consumers through its own website or online store. There are no intermediaries—you control the entire buying experience. 

Example: 

• Allbirds sells shoes through its own branded website. 
• Independent artists sell prints through their own online store. 

Pros: 

• Full control over branding, pricing, and customer relationships 
• No third-party seller fees 
• Builds long-term brand loyalty 

Cons: 

• You’re responsible for everything—inventory, shipping, support 
• Requires more effort to drive traffic and generate awareness 
• Higher upfront costs if you’re managing physical products 

Dropshipping 

This model involves marketing and selling products through your online store, but the actual inventory and shipping are handled by a third-party supplier. You never create or handle the product directly. 

Example: 

• Shopify stores that source trending items from AliExpress or DSers. 

Pros: 

• Low startup costs—no need to buy or store inventory 
• Easy to experiment with different product lines 
• Scalable with minimal overhead 

Cons: 

• Lower profit margins 
• Less control over product quality and shipping speed 
• High competition in saturated niches 

Subscription-based 

Customers pay on a recurring basis—weekly, monthly, or annually—to receive products or services. This model emphasizes retention and long-term value. 

Example: 

• HelloFresh delivers meal kits weekly 
• Skillshare charges a monthly fee for access to online courses 
• Dollar Shave Club offers grooming product subscriptions 

Pros: 

• Predictable, recurring revenue 
• Encourages customer loyalty 
• Easier to forecast and plan inventory 

Cons: 

• High churn rates if customers lose interest 
• Requires consistent content, product updates, or engagement 
• More complex fulfillment and billing systems 

Wholesale 

In the wholesale model, you purchase inventory in bulk from a supplier at a discounted price, then resell it for a profit either through your own website or on third-party platforms. 

Example: 

• A retailer purchasing products through Alibaba and reselling on Amazon. 

Pros: 

• Higher profit margins than dropshipping 
• Greater control over product quality and branding 
• Stronger supplier relationships 

Cons: 

• Requires upfront investment and storage space 
• Inventory risk—unsold products can result in losses 
• More complex logistics and order management 

Digital products and services 

Instead of shipping something physical, you sell downloadable or deliverable products or services online—like software, templates, music, or consulting. 

Example: 

• A designer selling Canva templates on Etsy 
• A freelancer offering virtual marketing audits via Zoom 

Pros: 

• No physical inventory or shipping costs 
• High profit margins 
• Can scale with minimal effort once created 

Cons: 

• Intellectual property can be copied or shared 
• You must demonstrate value clearly—especially for intangible products 
• Requires ongoing updates or support in some cases 

Marketplace/Platform model 

Rather than selling your own products, you can join a platform where other people can buy and sell. You make money by facilitating those transactions. 

Example: 

• Etsy and eBay host sellers and take a percentage of each sale 
• Amazon combines its own retail operation with third-party sellers 
• Fiverr allows freelancers to offer services to clients worldwide 

Pros: 

• Scalable business model 
• Generates income from fees, commissions, or subscriptions 
• Offers wide product or service variety without owning inventory 

Cons: 

• High competition among sellers 
• Significant investment needed if building a marketplace from scratch 
• Requires moderation, customer support, and platform maintenance 

What do you need to make eCommerce work? 

You don’t need a warehouse full of inventory or a team of developers to start selling online. At a basic level, every eCommerce business, big or small, needs four key components to function: 

1. A product or service to sell 

This could be just about anything: 

• Physical products like clothing, tools, or art. 
• Digital goods like eBooks, courses, or software. 
• Services like consulting, coaching, or freelance work. 

It doesn’t have to be complicated. If you have something of value, there’s a way to sell it online. 

2. A place to sell it 

You need a platform where customers can find and buy from you. This could be: 

• Your own website using tools like Network Solutions’ eCommerce builder or platforms like Shopify or WooCommerce. 
• Online marketplaces like Amazon, Etsy, or eBay. 
• Social commerce platforms like Facebook Shops or Instagram. 

Each option has pros and cons—your choice depends on your budget, branding needs, and audience. 

3. A way to accept payments 

Customers expect secure, seamless payment options. You’ll need: 

• A payment processor (like Stripe, PayPal, or Square) 
• A secure checkout system (SSL certificates are a must) 
• Support for common payment methods (credit/debit cards, digital wallets, etc.) 

This step is critical—if people don’t trust your payment process, they won’t buy. 

4. A way to deliver the product or service 

After someone places an order, you need to fulfill it. How you do that depends on what you’re selling: 

• Physical products. You can ship items yourself, work with a courier service (UPS, FedEx, and USPS).  
• Digital products. Use automatic downloads or email delivery. 
• Services. Schedule sessions or deliver work directly via email or platforms like Zoom or Trello. 

Timely, reliable delivery builds customer trust—and keeps people coming back. 

Want a full step-by-step guide? Check out our article on how to build an online store for a more detailed walkthrough. 

Take the first step toward online selling 

eCommerce is simply buying and selling online but behind that simplicity is a wide range of models, tools, and strategies. Whether it’s online retail sales or digital products, every successful eCommerce business starts with the same essentials: something to sell, a place to sell it, and a way to deliver it. This makes eCommerce much more convenient to set up than brick and mortar stores 

Ready to bring your idea online? Network Solutions makes it easy to build a professional eCommerce website with everything you need to get started.  Launch your eCommerce business today! 

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