ecommerce store

What is E-commerce website and how does it work

The ecommerce market is expected to reach USD 16,215.6 billion by 2027, growing at a CAGR of 22.9 percent from 2020 to 2027. Because India is a hotspot for ecommerce growth, now is a good time to learn the ins and outs of ecommerce and get started with the help of creating an ecommerce website.

We hear about ecommerce all over the digital world, and many people believe it is the future of retail. But, what exactly is an ecommerce website, and how does it work? If you have an ecommerce business or plan to start one, here is a quick guide to creating profitable and repeat business ecommerce websites.

What is Ecommerce website?

E-commerce (electronic commerce) is the buying and selling of goods and services, as well as the transfer of funds or data, over an electronic network, most notably the internet. These transactions can be business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), or consumer-to-business (C2B).

E-commerce and e-business are frequently used interchangeably. The term e-tail is also used to refer to the transactional processes that comprise online retail shopping. There are multiple types of E-commerce and before building an ecommerce website, let us know some of the major types of Ecommerce:

1. Business-to-Business (B2B)

The electronic exchange of products, services, or information between businesses, rather than between businesses and consumers, is referred to as B2B ecommerce. Online directories and product and supply exchange websites, for example, allow businesses to search for products, services, and information and initiate transactions via e-procurement interfaces. According to a Forrester report published in 2018, B2B e-commerce will reach $1.8 trillion by 2023, accounting for 17 percent of US B2B sales.

b2b example
Indiamart is the best example for B2b In India

2. Business-to-consumer(B2C)

It is the retail component of internet e-commerce. It occurs when businesses sell products, services, or information to consumers directly. The term was popular during the late 1990s dot-com boom, when online retailers and sellers of goods were a novelty. On the internet today, there are countless virtual stores and malls selling a wide range of consumer goods. Amazon is the most well-known example of one of these sites. It rules the B2C market.

b2c example
Mcdonald’s is an example of B2c

3. Consumer-to-consumer(C2C)

It is a type of e-commerce in which consumers exchange products, services, and information online. These transactions are typically carried out through a third party that provides an online platform for the transactions.
C2C platforms include online auctions and classified advertisements. Some well-known examples of these platforms are eBay, Quickr and OLX. Since eBay is a business, this type of e-commerce is also known as C2B2C, which stands for consumer-to-business-to-consumer. C2C transactions are also possible on platforms such as Facebook Marketplace and Depop, a fashion reselling platform.

c2c example
olx is an example of c2c business

4. Consumer-to-Business(C2B)

It is a type of e-commerce in which consumers make their products and services available online for bids and purchases by businesses. This is the polar opposite of the traditional B2C commerce model. A popular example of a C2B platform is iStock, unsplash and pexels which sells royalty-free photographs, images, media, and design elements. A job board is another example.

c2b examples
pexels is another example of c2b business

5. Mobile Ecommerce

(m-commerce) refers to online sales conducted through mobile devices such as smartphones and tablets. It consists of mobile shopping, banking, and payments. Mobile chatbots help m-commerce by allowing customers to complete transactions via voice or text conversations.


How does ecommerce Businesses Work?

Online businesses operate on the same principles as brick-and-mortar stores. On a larger scale, the entire ecommerce process can be divided into three major components or work processes:

Order Acceptance

This is the first step, in which customers place orders via the ecommerce platform (website or online portal) and the seller records them.

Order Processing Information

The second step involves processing and completing all of the details of the order. It is now ready for shipment.


This is the final step in the delivery process. To ensure timely delivery to the customer, all logistics components play an important role in this step. If you get the fundamentals right and run your ecommerce business correctly, you will undoubtedly profit. Remember that proper business planning and implementation are essential for running a successful online store


An e-commerce platform is a tool for managing an e-commerce business. E-commerce platform sizes range from small businesses to large corporations. These e-commerce platforms include online marketplaces like Amazon and eBay, which require only the creation of user accounts and little to no IT implementation.

Another e-commerce platform model is SaaS, which allows store owners to subscribe to a service that allows them to rent space in a cloud-hosted service. This method eliminates the need for in-house development and on-premises infrastructure. Other e-commerce platforms include open source platforms that necessitate a hosting environment (cloud or on-premises) or manual implementation and maintenance.Building an ecommerce website is very easy and you can learn more how to create an ecommerce website by clicking on this link here. To know further on services you can visit our ecommerce section here