E-commerceModule 1: The online-store modelLesson 1 of 11
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12 min lesson · Updated August 2026
What is e-commerce?
E-commerce is the selling and buying of products or services through digital systems, including discovery, catalog, price, payment, fulfilment, service, returns and the records that connect them.
What you will learn
By the end, you will understand:
Explain the complete online buying operation
Compare B2C, B2B, DTC and marketplace models
Recognize that a storefront is only one part of commerce
Visual explainer
See the idea clearly.
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A shopper discovers a product, evaluates details, checks out, payment is processed, inventory updates, fulfilment delivers, support handles returns and the relationship may continue.
E-commerce is an operating system
01
Demand/discovery
02
Catalog and availability
03
Product evaluation
04
Cart/checkout
05
Payment decision
06
Order record
07
Inventory allocation
08
Fulfilment/delivery
09
Support/returns
10
Retention and reporting
Common business models
Model
Meaning
B2C
A business sells to individual consumers.
B2B
A business sells to organizations, often with accounts, quotes, terms or bulk pricing.
DTC
A producer/brand sells directly to end customers rather than only through intermediaries.
Marketplace
A platform connects multiple sellers and buyers and sets rules/fees/responsibilities.
Subscription
A recurring product/service relationship with renewal and cancellation duties.
Digital products and services are commerce too
Courses, software, memberships, bookings and downloadable assets can be sold online, but fulfilment, access rights, taxes, refunds and support differ from physical goods.
Define what the customer receives, for how long, under which terms and how access ends.
The store connects many systems
Product information
Inventory/availability
Pricing/promotions
Payment provider
Tax configuration/advice
Shipping/fulfilment
Order management
Email/SMS
Customer service
Fraud/chargebacks
Analytics/accounting
Privacy/security
Commerce creates obligations
The business must accurately describe products, price and material terms, deliver as promised, handle personal/payment data responsibly and provide required cancellation/return/refund information under applicable rules.
A platform supplies tools; it does not take every legal or operational responsibility from the seller.
Success is more than conversion rate
Revenue without margin, fulfilment capacity, repeat value and customer trust can damage the business. Measure cancellations, returns, fraud, support load and delivery quality alongside acquisition and checkout.
Different models require different economics and time horizons.
Real-world example
Example: one product, two models
Example
A skincare maker sells direct through its own store and wholesale to salons. DTC needs consumer checkout, shipping and returns; B2B needs account approval, case quantities, negotiated terms and repeat ordering. One generic flow would serve neither well.
Try this
Map an order from promise to resolution
Choose one product. List discovery, product facts, price, payment, inventory, fulfilment, delivery, support, return/refund and financial reconciliation owners.
Common questions
Questions beginners ask.
What is e-commerce?
Digital buying and selling supported by catalog, payment, order, fulfilment, service and data systems.
Is an online store just a website?
The storefront is a website/application, but commerce also requires operational and financial processes.
What is B2C?
A business selling to individual consumers.
What is B2B e-commerce?
Online commerce between businesses, often with different pricing, accounts, quantities and approval workflows.
What is DTC?
A brand or producer selling directly to end customers.
What is a marketplace?
A platform that connects multiple sellers and buyers under platform rules and fees.
Can services be sold through e-commerce?
Yes. Bookings, subscriptions, software and digital access need suitable fulfilment and terms.
Does a platform handle every legal requirement?
No. Sellers remain responsible for their products, representations and many tax, privacy, consumer and operational duties.
