What is ecommerce?

E‑commerce (electronic commerce) is the buying and selling of goods or services over the internet. Instead of going to a physical store, you browse a website or app, add items to a virtual cart, pay online, and have the products delivered to your door or accessed digitally.

Let's break it down

  • Website or app: The online storefront where products are shown.
  • Product catalog: List of items with pictures, descriptions, and prices.
  • Shopping cart: A temporary list of items you want to purchase.
  • Payment gateway: The service that processes credit cards, digital wallets, or other payment methods securely.
  • Order fulfillment: Packing, shipping, and delivering physical goods, or granting access to digital goods.
  • Customer service: Support for questions, returns, or issues after the sale.

Why does it matter?

E‑commerce lets businesses reach customers anywhere in the world, 24/7, without needing a physical shop. For shoppers, it offers convenience, a wider selection, and often better prices. It also drives economic growth and creates new jobs in tech, logistics, and digital marketing.

Where is it used?

  • Online retail stores like Amazon, eBay, and Etsy.
  • Brand websites that sell directly to consumers (e.g., Nike, Apple).
  • Service platforms such as Uber, Airbnb, and streaming services.
  • B2B marketplaces where companies buy supplies from each other.
  • Mobile apps for food delivery, ticket booking, and more.

Good things about it

  • Convenience: Shop anytime, anywhere.
  • Broader reach: Small businesses can sell globally.
  • Lower costs: No rent for a physical storefront, often cheaper prices for customers.
  • Personalization: Data can tailor recommendations and offers.
  • Scalability: Easy to add more products or handle more traffic with the right technology.

Not-so-good things

  • Security risks: Fraud, data breaches, and phishing attacks can affect both buyers and sellers.
  • Shipping issues: Delays, lost packages, or high delivery costs can frustrate customers.
  • Intense competition: Many sellers compete on price and visibility, making it hard to stand out.
  • Limited tactile experience: Customers can’t touch or try products before buying.
  • Dependence on technology: Website downtime or technical glitches can halt sales instantly.