Ecommerce Meaning

What is Ecommerce Meaning

Ecommerce Meaning

The term E in Ecommerce stands For Electronic and that is an electronic network, primarily the internet. Commerce means buying and selling goods and services. So the term Ecommerce Meaning is to buying and selling goods and services, or the transmission of funds or data, over an electronic network, primarily the internet.


Ecommerce refers to transactions conducted over the internet to buy and sell goods and services. This includes transferring money and data to execute the transactions. In addition to describing the commercial transactions facilitated via the internet, eCommerce can also refer to the sale of physical products online.

Ecommerce Meaning


There are several types of business transactions, including business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer, and consumer-to-business.

In many cases, e-commerce and e-business are used interchangeably. It is also possible to refer to online retail shopping as an e-tail.

The widespread use of e-commerce platforms such as Amazon and eBay has contributed to substantial growth in online retail over the last two decades. In 2011, retail sales via e-commerce accounted for 5% of total retail sales, according to the  U.S. Bureau of the Census. As a result of the COVID-19 pandemic, the percentage of retail sales had risen to over 16% by 2020.

How does E-Commerce work?

An e-commerce site is powered by the internet. Online stores allow customers to browse through products and place orders via smartphones and tablets.

When the customer places an order, his or her web browser communicates with the server hosting the e-commerce website. A central computer, called the order manager, will receive order data. In the next step, it will be forwarded to databases that manage inventory levels, a merchant system for managing payment information, such as PayPal, Payoneer, and a bank computer. A final round of communication will take place with the order manager. In order to process the order, it is necessary to ensure the store inventory and customer funds are sufficient.

The order manager will notify the store’s web server when the order has been validated. In this case, the customer will receive a message informing them that their order has been successfully processed. After that, the order manager sends the order data to the warehouse or fulfillment department so that it can dispatch the customer’s product. This is the point at which tangible or digital products are shipped or services are made available to a customer.


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