E-commerce or electronic commerce refers to the buying and selling of goods and services over the Internet.

E-commerce encompasses various models, including business-to-consumer (B2C), business-to-business (B2B), and consumer-to-consumer (C2C). Examples of e-commerce include online retail stores, online marketplaces, and digital platforms for buying and selling products, services, or content.

E-commerce should not be confused with e-business, as the latter is broader in scope. E-business includes not only online buying and selling but also communication, collaboration, customer service, and other business aspects that leverage digital technology. See our glossary page on e-business to better understand how it’s different from an e-commerce business.

Advantages of setting up an e-commerce business

• Global reach. E-commerce allows businesses to reach buyers worldwide, breaking down geographical barriers and expanding market reach. Many e-commerce companies use both a website and a mobile app to reach as many potential customers as possible. One example is the Australian e-commerce giant MyDeal.
• Cost efficiency. Operating an online store can be more cost-effective than maintaining a physical storefront. For instance, an online store doesn’t require expenses like building rent, utilities costs, etc.
• 24/7 availability. E-commerce enables businesses to operate 24/7, providing customers with the flexibility to shop at any time.
• Customer insights. Mobile analytics integrated with e-commerce platforms can generate valuable data and insights into customer behavior, preferences, and trends. Ultimately, these types of information enable the improvement of product offerings and enhancement of website or app design to make e-commerce businesses more financially sustainable.
• Personalization. Leveraging data to personalize the shopping experience and offer tailored recommendations is possible, especially in many e-commerce apps. These marketing techniques enable e-commerce businesses to sustain earnings momentum and keep customers satisfied.