E-commerce

E-commerce is the buying and selling of goods or services through electronic networks, such as websites and mobile applications. Customers can discover products, compare prices, place orders, and arrange payment without necessarily visiting a physical store.

One common model is online retail. A retailer purchases products from suppliers and sells them to customers. The difference between the selling price and the cost of the products sold contributes to gross profit, before other expenses are considered.

Another model is direct-to-consumer commerce, often called DTC. A brand sells directly to customers through its own digital channels rather than relying exclusively on traditional retailers. This can give the brand more control over the customer experience, but it also has to manage customer acquisition, fulfillment, and customer service.

Some retailers combine online stores with physical locations. Customers may order online, collect products from a store, or receive deliveries fulfilled through a network of stores and distribution facilities. This approach can improve convenience, although its economics depend on the cost and efficiency of the entire operation.

E-commerce is broader than the marketplace business model. A retailer can sell products it owns, while a marketplace generally connects buyers with independent sellers. A single company may operate both models, so its reported revenue must be interpreted according to the activities that generate it.