What is eCommerce? Definition and Benefits

3 min readNov 4, 2021

E-commerce is the buying and selling of goods or services via the internet, and the transfer of money and data to complete the sales. It’s also known as electronic commerce or internet commerce.

Today, questions about e-commerce usually center around which channels are best to execute business online, but one of the most burning questions is the appropriate spelling of eCommerce.

Types of eCommerce

Consumer to Business (C2B): Consumer to business is when an individual sells their services or products to a business organization.
Consumer to Consumer (C2C): C2C e-commerce refers to the sale of a good or service to another consumer. Consumer to consumer sales take place on platforms like eBay, Etsy, Fiver, etc.
Direct to Consumer (D2C): Direct to consumer e-commerce is the newest model of ecommerce business, and trends within this category are continually changing. D2C means that a brand is selling directly to their end customer without going through a retailer, distributor, or wholesaler.
Business to Business (B2B): B2B e-commerce refers to a business selling a good or service to another business, like a manufacturer and wholesaler, or a wholesaler and a retailer.
Business to Consumer (B2C): B2C e-commerce is the most popular e-commerce model. Business to consumer means that the sale is taking place between a business and a consumer.

What is e-commerce: Examples

Everyone from independent freelancers to small businesses to the largest of corporations can benefit from the ability to sell their goods and services online at scale. Here are some examples of types of e-commerce:

Dropshipping: The sale of products that are manufactured and shipped to consumers via a third party.
Digital products: Downloadable items like templates, courses, e-books, software, or media that must be purchased for use. Whether it’s the purchase of software, tools, cloud-based products.
Wholesale: Products sold in bulk. Wholesale products are usually sold to a retailer, who then sells the products to consumers.
Crowdfunding: Crowdfunding allows sellers to raise startup capital in order to bring their product to the market.
Retail: The sale of products directly to a consumer without an intermediary.

Benefits of eCommerce

Online commerce offers a plethora of benefits, from selling everywhere to personalized experiences that drive loyalty. Let’s look at some of the biggest benefits of e-commerce:

Minimized expenses

Since brick and mortar is no longer required, digital sellers can launch online stores with minimal startup and operating costs.

Global marketplace

Customers from around the world can easily shop e-commerce sites — companies are no longer restricted by geography or physical barriers.

Personalization and customer experience

eCommerce website design services and eCommerce marketplaces can create rich user profiles that allow them to personalize the products offered and make suggestions for other products that they might find interesting.

Convenience

Online commerce makes purchases simpler, faster, and less time-consuming, allowing for 24-hour sales, quick delivery, and easy returns.