E-commerce
August 1, 2025
What is e-commerce?
E-commerce is short for electronic commerce and refers to the buying and selling of goods online. It empowers businesses to reach and sell directly to consumers without a physical storefront.
Instead they use a digital platform and online advertising tools. For example, Catalog Ads are a core e-commerce tool, automatically showing personalised products from your store across ad platforms like Meta and TikTok.
Different types of e-commerce
E-commerce can take on several forms including:
Business to business (B2B) where businesses sell their products directly to another business. It often involves bulk and recurring orders at a discounted rate.
Business to consumer (B2C) where businesses sell their products directly to individual consumers.
Consumer to consumer (C2C) where consumers use platforms like Facebook to sell used products.
What are the key components of an e-commerce business?
Online storefront
Your online storefront acts as a digital representation of a physical store. It can take the form of a website, mobile app, or online marketplace where you showcase your product and provide descriptions, images, pricing, and purchase options.
Checkout system
You need technology that allows users to select products, manage their orders, and pay securely. This can include tax and shipping calculations and typically supports various payment methods (e.g. credit cards, PayPal, digital wallets, etc.).
Payment gateway
E-commerce businesses use a service that authorises and processes payments between customers and merchants. It encrypts sensitive financial data to ensure secure transactions.
Order fulfilment
Once a purchase is made, the order must be picked, packed, and shipped. Many e-commerce businesses partner with third-party logistics (3PL) providers or use services like Fulfillment by Amazon (FBA).
Customer support
To handle inquiries, refunds, and offer an after-sales service to ensure customer satisfaction, e-commerce businesses can use a combination of live chat, email, or chatbots.
Marketing tools
E-commerce businesses can use a wide range of digital marketing strategies and tools to grow brand awareness, attract new customers, and increase sales. These include:
Email marketing
Search engine optimisation (SEO)
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