Ecommerce Definition
Ecommerce (electronic commerce) is a commerce channel through which goods and services are bought and sold over the internet. For businesses, it removes the need for a physical presence: a company can reach any customer, in any market, at any time, and process transactions automatically.
What does a business need to run ecommerce?
Three things need to work together: a storefront where customers browse and buy, payment processing to accept and settle transactions securely, and fulfillment to deliver the product or service. As order volume grows, inventory tracking, order management, and customer support are typically handled by dedicated software.
What are the main business models?
- B2C (Business-to-Consumer) — selling to individual shoppers
- B2B (Business-to-Business) — selling to other businesses, often in bulk with negotiated pricing
- D2C (Direct-to-Consumer) — a brand sells directly to shoppers, bypassing retailers and distributors
Each model can be run through a company's own online store, an ecommerce platform like Shopify, or a third-party marketplace like Amazon, with most businesses using more than one at the same time.
Why does product data quality matter?
Online shoppers cannot touch or inspect a product before buying, so they rely entirely on titles, descriptions, images, specifications, and reviews. Poor or inconsistent product data leads to abandoned carts and high return rates. Businesses selling across multiple channels often use a Product Information Management (PIM) system to keep data accurate and consistent across all channels.
