What Is eCommerce? Everything You Need to Know to Start Selling Online

Did you know that more than a quarter of all retail transactions now happen online? That’s not just impressive, it’s a signal. The digital storefront has become just as important as the physical one (if not more so).

Whether you're browsing late at night in your pajamas or running a small business from your kitchen table, eCommerce touches nearly every part of modern life.

But here's the kicker: if you're thinking about launching an online store, understanding the types of eCommerce and the business models behind them isn't just helpful, it’s essential.

What You Will Learn in This Article:

• What eCommerce actually means, beyond just online shopping

• Why eCommerce matters more than ever in 2025

• The key types of eCommerce transactions (like B2C, B2B, DTC, etc.)

• The most popular business models used in eCommerce today

• Real-world examples of companies using each model successfully

• How to identify which model fits your personal goals or business idea

What Is eCommerce, Really?

So, what is eCommerce? At its core, eCommerce (short for electronic commerce) is the buying and selling of goods or services using the internet. That’s it. No mystery. No tech jargon.

Every time you order a new pair of shoes from Amazon, download a course from Udemy, or use Uber Eats to get sushi at midnight, you’re engaging in eCommerce.

And here’s something people often overlook: it’s not just physical stuff. eCommerce also includes digital products like ebooks, software, stock photos, or even consulting sessions. If money changes hands online and something is exchanged, physical or digital, that’s eCommerce.

Why eCommerce Is a Big Deal in 2025

Let’s be honest, our shopping habits have changed. We don’t wait in lines or clip coupons from magazines anymore. In 2025, we’re tapping, swiping, and checking out faster than ever before.

Some of the biggest drivers?

• Mobile-first shopping: Everyone has a store in their pocket now.

• Global access: You can sell handmade jewelry to someone in Japan or Argentina without leaving your couch.

• Tech makes it simple: You don’t need to be a coder. Tools like Shopify or Wix let anyone launch a store, sometimes in a weekend.

People love convenience, and businesses love low overhead. eCommerce delivers both.

Let’s Talk Types: How Transactions Flow Online

There’s more than one flavor of eCommerce. Here’s how the digital money moves, depending on who’s buying and who’s selling.

B2C (Business-to-Consumer)

This is the model most of us know best. A company sells directly to an individual. Think: Nike.com, Apple, Amazon.

B2B (Business-to-Business)

This is when businesses sell to other businesses. Whether it’s a manufacturer selling raw materials or software tools like Slack selling team subscriptions, this space is huge and growing.

C2C (Consumer-to-Consumer)

Ever sold an old camera on eBay or flipped furniture on Facebook Marketplace? That’s C2C in action. Peer-to-peer, simple as that.

DTC (Direct-to-Consumer)

A hybrid of sorts, brands that skip the middleman (retailers) and sell right to the buyer. Warby Parker and Glossier nailed this model.

C2B (Consumer-to-Business)

It’s rare, but rising. Freelancers, influencers, or creatives offering services to companies. Platforms like Fiverr, Upwork, or influencer collaborations fall under this umbrella.

Choosing Your Game Plan: Popular eCommerce Business Models

Alright, now that we’ve covered the “who’s buying from who,” let’s talk how they’re selling. Your business model shapes everything, from your workload to your margins.

1. Dropshipping

You sell the product, someone else stores and ships it. No warehouse, no packing tape. Sounds dreamy, right? It can be, but margins are often razor-thin and competition is fierce.

2. Print-on-Demand (POD)

Think custom T-shirts, mugs, posters, printed only after someone places an order. It’s a dream for designers and artists using platforms like Printful or Printify. Inventory? Never heard of her.

3. White Labeling

You buy a ready-made product, slap your brand on it, and sell it as your own. It’s fast to launch but you're limited in customization. Skincare and tech gadgets are common here.

4. Private Labeling

A more involved cousin of white labeling. You work directly with manufacturers to create a custom product under your brand. It takes more time and money, but you control everything, from the formula to the font on the label.

5. Affiliate Marketing

You don’t sell anything directly. Instead, you recommend products and earn a slice of the sale if someone buys through your link. It's passive-ish income for bloggers, YouTubers, and content creators.

6. Digital Products

No inventory, no shipping, no delays. Selling courses, templates, eBooks, or music is profitable and scalable. The upfront work is real, but the rewards can be long-lasting.

7. Subscription-Based E-Commerce

Customers pay monthly or quarterly for recurring products. Think snacks, razors, socks, or books. You get predictable revenue, they get surprises on their doorstep.

8. Marketplace Selling

Why build traffic from scratch when Amazon or Etsy already has it? You piggyback off their audience, but they take a cut and your brand might take a back seat.

Quick Hits: Real-World Examples That Nail It

Let’s put names to the models:

• Amazon – Classic B2C and marketplace

• Printify – POD platform loved by designers

• Shopify – DTC platform powering indie brands

• Etsy – Go-to for handmade and vintage goods

• ClickBank – Big player in affiliate marketing

Each has its perks and its quirks. You’ve just got to find what clicks with your goals.

So... What’s Your eCommerce Angle?

We’ve covered a lot, types, models, and real-life players. So here’s where it gets personal: what’s your vision?

If you’re just starting out, don’t rush the setup. The way you sell matters as much as what you sell. Understanding the eCommerce landscape can help you build a business that’s not just profitable, but sustainable.