What is Ecommerce and Ecommerce Business?

by Dec 3, 2020Business, Computer and hardware, Technologies0 comments

For those who do not have the idea of the term eCommerce before, the first query that comes to mind may be, what is eCommerce? In this article, we discuss in detail what exactly e-commerce is, how to start an eCommerce business, how to practice an eCommerce website, and much more. If you are interested in anything related to e-commerce or just require the question, “What is e-commerce?” answer, then this is your topic!

Ecommerce Business

What is Ecommerce? Ecommerce Business

It is an abridged version of the term “electronic commerce” which explicitly defines any form of currency exchange for goods or services online.

Ecommerce is an umbrella term that covers everything related to buying or selling online, and can sometimes be alternatively labeled “E-Commerce,” “e-commerce,” or “eCommerce.” Any spelling variation is correct, and it all means the same act of doing business online.

As the definition of e-commerce has open (including any form of buying or selling goods or services online) there are far more types of e-commerce businesses available. In this article, we delve deeper into the many resources available to e-commerce owners to run their eCommerce business.

The Types of Ecommerce Business Models

First things first, when you request yourself, “What is e-commerce?” The finest way to begin is to define the dissimilar e-commerce industries, and the diverse types of e-commerce businesses, to classify them into existing e-commerce business models.

Ecommerce commercial models distinguish into three main classes:

  • What types of products are selling?
  • Whom the products are sold to
  • Where the products are sold on

Let’s look into these three identifiers further:


Every e-commerce business categorizes by the types of products it sells. There are four main products that any e-commerce business can sell and these are:

  • Physical Products
  • Digital Products
  • Services
  • Affiliates

Every single e-commerce business online can fit into one or more of these classes, and this just tells you what type of products they sell to their customers.

Some commerce businesses sell tangible products which means that the business has tangible products that they send to their clients, and when their clients open the shipping package there will be a portable product that you can touch, hear and see.

Digital products, on the other hand, are something that commercial businesses sell online. But they are not real products sent to their clients. Usually, if a digital product purchase online the customer can download the digital records immediately without the need for the business to send anything to the clients.

Ecommerce Business

Businesses can also offer digital or personalized services that their customers can buy online. These services can include anything from design services or broadcast services (both digital services) to home upgrading services or dog walking services (personal services). Any service that assists, other than a physical or digital product, can be comprised in this class.

Lastly, commerce businesses can also earn commissions through affiliate links that pay them a fraction of the cost of facilitating sales. Ecommerce businesses receive interaction commissions that can be blogs, influential websites, or websites like Canopy that collect products for sale online to consumers. If you take interest in building your compatible e-commerce store, check out Our First Guide on Creating an Ecommerce Store Article.


Next, eCommerce businesses can be categorized by whom the business is selling their products. While it may be common sense to assume that all products sold to consumers, which is not always the case. Sometimes a “buyer” can be another business.

These are the three main classes in which commerce companies sell their products or services:

B2B: This means Business-to-Business. Ecommerce businesses sell mobile or digital products or services to other businesses that fall under this category. For example, this may comprise manufacturers or suppliers who supply goods or products for other businesses.

B2C: This means Business-to-Consumer. An eCommerce business that sells portable or digital products or services to consumers falls under this group. This comprises retailers or e-commerce vendors who sell products to the end consumer.

B2G: This means Business-to-Government. E-commerce industries sell physical or digital products or services to government organizations or companies that fall under this category. For example, this could include businesses building specialized software, office furniture, uniforms, etc.

While many businesses usually sell their products in one of these categories. Commerce businesses can sell to more than one consumer category. Ecommerce businesses need to understand to whom they sell their products. Because they influence important decisions such as their marketing, branding, their delivery processes, branding, etc.


Lastly, commerce businesses categorize according to how they sell their products to their clients. These choices are:

Branded eCommerce Stores. These e-commerce stores own and function by the store’s makers or creators. And they sell their products on their terms to their clients. These kinds of stores usually built on e-commerce stages such as Shopify or BigCommerce.

Ecommerce Marketing Areas: Ecommerce Business can also sell online markets such as Amazon, eBay, or Etsy. For business, this is like renting a place in a mall. A mall manages marketing and delivers foot traffic. This means that retailers do not have to invest a lot of time or money to bring clients to their stores. However, they must comply with store rules such as their opening hours, what goods they can and cannot sell, etc.



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