What Is Ecommerce? A Complete Guide

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Ecommerce (or electronic commerce) encompasses the entire process of buying and selling goods via the internet, including product listing, payment processing, and fulfillment.

If you’re looking to build an online store and carry out transactions online, that’s ecommerce. In this beginner-friendly guide, I’ll walk you through everything you need to know about ecommerce, from definitions to expert tips.

Key Takeaways 🔍

  • Ecommerce doesn’t just refer to online stores, but all of the activity around buying and selling products online, from product listing to payment processing to shipping goods
  • Competition is high when selling online, with B2C sales expected to reach over $5 trillion by 2027, so make sure your brand stands out in the growing market
  • Your online store can be open 24/7, deliver personalized experiences, reduce physical overhead like rent, and reach international audiences, unlike a brick-and-mortar store serving a local community
  • There are different types of ecommerce business, including B2B (business-to-business) and dropshipping, but B2C (business-to-consumer) is the most popular model
  • Wix is a top-rated ecommerce website builder for all-in-one business management with advanced AI features and support for a multichannel selling strategy

What Is Ecommerce?

Ecommerce is the practice of buying or selling products via the internet. Purchasing goods or services online has become the norm for many, whether through an online store, marketplace, or social media platform.

You might think of an online store when you hear “ecommerce,” but it’s actually an umbrella term for the entire journey, from listing products online to delivering goods to someone’s doorstep.

How Does Ecommerce Work?

Ecommerce works through a chain of digital workflows: an online platform for product listing, a secure payment gateway for transactions, and a fulfillment or delivery service.

Businesses can connect directly with customers, build relationships, manage inventory, ship goods, and promote their brand, all from the web.

The International Trade Administration forecasts that global business-to-consumer (B2C) ecommerce sales will reach $5.5 trillion by 2027. Given this ongoing growth, most businesses operate in the online space. This can be their sole source of revenue, or a complement to in-person sales.

How Is Ecommerce Changing in 2026?

Ecommerce is constantly evolving to meet the latest trends and technology, such as agentic commerce and personalized shopping experiences. Adopting these methods can help your business boost sales, improve customer relationships, and save your company time and money in the long run.

These are the latest ecommerce trends for 2026:

  • Agentic commerce: Consumers can use AI agents for product research and purchasing, directly within a conversational interface (all Wix websites are accessible for agentic commerce).
  • Building stores with AI: AI website builders can help you build an online store from scratch, manage your inventory, generate product descriptions, and answer customer queries 24/7.
  • Social commerce: With platforms like TikTok becoming search engines and mobile shopping on the rise, businesses must engage with their community across social media platforms to land sales and build trust.
  • Personalized experiences: AI can monitor shopping behavior, browsing habits, and searches, to ensure relevant product recommendations are made to customers (this can be via your online store, through personalized newsletters, or with targeted ads).

What Are the Pros of Ecommerce?

Besides the growing ecommerce market, there are plenty of benefits when it comes to setting up an ecommerce business, including lower costs, convenience, and scalability.

Low Cost Setup

Ecommerce reduces initial business overhead by eliminating costs associated with physical storefronts, such as rent, staff salaries, and property maintenance.

Of course, there are some fees involved with selling online, such as website builder subscriptions, transaction fees, and third-party plugins.

For example, Wix’s pricing ranges from $17 to $159 per month (billed annually), but you’ll need to pay at least $29 per month to unlock ecommerce functionality. You can see a breakdown of Wix’s plans in the table below:

Wix plan Free Light Core Business Business Elite
Price with our discount code (TAKE10) $0 $15.30 $26.10 $35.10 $143.10
Monthly price (paid annually) $0 $17 $29 $39 $159
Ecommerce No No Yes Yes Yes
Recommended for Trying out Wix Portfolios and personal sites Small stores and growing businesses Established businesses Large businesses with complex needs

24/7 Shopping

An online store is open 24/7 and doesn’t need constant staff monitoring, meaning your business is accessible to customers when they need it. If you run a brick-and-mortar business, your sales are limited to opening hours.

If you’re worried about leaving your online store unattended, you can always install an AI chatbot to handle customer queries that come in outside of your standard working hours.

International Reach

Ecommerce enables international reach by connecting businesses with customers across different cities, states, and countries, without the geographical limits of a physical shop. Your online store’s address is global.

Wix’s ecommerce website builder can help you sell internationally with Wix Multilingual (to translate content into more than 180 languages), global SEO tools, international payment processing, and local currency conversion.

Personalized Experiences

Another benefit of ecommerce is the fact that you can gather useful customer data to personalize the shopping experience.

With Wix’s ecommerce and marketing tools, you can see your top paying customers, review where customers spend time on your site, assess returning customer behavior, and more.

This is hugely beneficial for businesses, since you can use this information to improve your content and marketing strategies. With this data, you can:

  • Create personalized email campaigns
  • Encourage loyalty with unique discounts
  • Recommend relevant products to boost sales
  • Retarget customers to avoid abandoned carts

Room To Grow Your Business

With ecommerce, it’s much easier to scale your business depending on your goals, whether you want to sell more products, increase your traffic allowance, or access more advanced tools. A physical store is limited by its footprint, unless you have the funds to expand or relocate to a bigger space.

For example, Wix’s starting ecommerce plan ($29 per month) includes up to 50,000 products, 50GB storage, five collaborators, access to Wix’s AI tools, and basic marketing and analytics, perfect for your new store.

As you grow with Wix, you can upgrade to the next tier ($39 per month), which unlocks 100GB storage, 10 collaborators, and advanced sales tools, such as unlimited “back in stock” notifications.

Technology Integration

With an online business, it’s easier to install and roll out new technology or software to improve the site and customer journey. For example, a new AI tool to help you streamline marketing campaigns, or accounting software to simplify workflows and save you time.

What Are the Challenges of Ecommerce?

Naturally, ecommerce also has its challenges, with online sellers facing common pain points, such as competition and US tariff rates.

Competitive Landscape

If you operate a brick-and-mortar store in your town, you’re competing with a select number of shops in the same area. With ecommerce, that number is impossible to measure, and it’s increasing all the time — there’s no limit to how many stores can operate on this digital street.

As more ecommerce businesses pop up, make sure your business finds gaps in the market to really stand out. After all, there could be hundreds of businesses selling the same type of product as you, so what sets you apart from the rest?

Top Tip 💡

If you’re struggling to find online business ideas to start, Wix’s free Business Launcher can help generate business ideas and refine them before you launch.

The tool walks you through three steps to help you generate relevant ideas based on your skills, resulting in a personalized business action plan, so you can get your ecommerce store off the ground quickly.

3 business ideas for a craft business generated by Wix Business Launcher
I used Wix’s Business Launcher to suggest some business ideas to me. Source: Wix

Quality Control

Quality control can be a challenge in ecommerce models, like dropshipping or print-on-demand, where the business owner doesn’t handle the physical inventory directly. This can result in unhappy customers if they receive a damaged, faulty, or incorrect product.

You can avoid this by producing, storing, and delivering the products yourself, but this can be a lot of additional work, especially if your business has a large catalog of goods.

Delivery and Shipping

Customers expect to receive their orders quickly and without a hitch — how your products are shipped and delivered can really impact a customer’s first impression of your brand.

To ensure smooth delivery and shipping, I recommend:

  • Using reliable shipping services, such as USPS, UPS, FedEx, and DHL
  • Clarifying shipping times to customers can help manage expectations
  • Offering local delivery or store pickup — it’s nice to give customers more options at checkout if possible
  • Keeping track of orders, so if an order gets lost, you can quickly find a solution to avoid further delay
  • Requesting feedback following an order — ask customers to share how they found the experience so you can make improvements if needed

Top Tip 💡

In the wake of President Trump’s tariffs on imported goods to the US, it can be cheaper for businesses to produce and store products in America to avoid high shipping costs.

Security Risks

If your site lacks basic security measures, you run the risk of damaging your reputation, losing revenue, and facing legal battles. Customers need to know their personal and financial details are safe when shopping with your online business.

Thankfully, most ecommerce platforms include security as a standard feature. As an example, if you make an ecommerce website with Wix, you’ll get these security measures included:

  • HTTPS (Hypertext Transfer Protocol Secure)
  • SSL certificate
  • Anti-fraud protection
  • 24/7 monitoring

Top Tip 💡

The best way to build trust with your customers is to be transparent about how you protect their data from harm. I recommend adding a privacy policy page or section to your site, so visitors can easily see how your business is being proactive about security.

Customer Service

Navigating customer queries and complaints can be challenging for any business, but even more so for ecommerce stores, since you can’t offer support face-to-face.

To meet customer needs and demands quickly, it’s important to offer a variety of contact options (such as a contact form, AI-powered live chat, and social media DMs).

You have to go the extra mile when delivering online support, and remember to respond to bad reviews and comments, as well as the good. This can really help your brand reputation and show that your business cares enough to listen to its customers.

Staying on Top of Trends

Should your business jump on trends? Trends are constantly evolving and changing, so it can be difficult to keep your finger on the pulse of what’s popular.

Staying aware of trends can help your business stay ahead of the competition, so I recommend checking across your social media accounts to see what your audience is engaging with the most, and see what trends your competitors are jumping on.

But remember, it’s only worth hopping on the latest viral product or video for social media if it’s relevant to your target audience and business.

What Are the 3 Main Types of Ecommerce Business?

The three main types of ecommerce business are B2C, DTC, and B2B. These models describe different ways that businesses can sell online:

  • B2C (business-to-consumer): Your business sells products or services to customers
  • DTC (direct-to-consumer): Your business sells directly to a customer, without going through a middleman, such as a retailer or wholesaler
  • B2B (business-to-business): Your business sells products or services to other businesses

If you picture an online store (or look at these ecommerce website examples), it’ll typically be operating a B2C or DTC ecommerce model — B2C is the most widely adopted ecommerce model globally. DTC is more hands-on and often used by retail businesses, but it’s also a great option if you’re selling via socials, like TikTok Shop or Pinterest.

You’re also not fixed to one type of ecommerce business for life. Brick-and-mortar stores can expand into ecommerce and online stores can explore other forms of selling online, such as dropshipping or B2B.

What Is Dropshipping?

Dropshipping means your business uses a third-party vendor to manage, store, and ship your products to customers. It’s a great option for business owners that have no storage space or lack the capacity to oversee inventory directly.

What Can I Sell as an Ecommerce Business?

You can sell a variety of products or services as an ecommerce business, from physical items to online educational courses. Typically, these are the main types of products to sell:

Type of product Description Examples
Physical Items that customers can hold and use Jewelry, food, dog beds, furniture
Digital Items that only exist digitally Music, videos, downloadable content
Subscriptions Repeat purchases of products through a subscription model Customers will receive your shampoo product every three months
Services Experiences that customers purchase or schedule online Beauty appointments, online courses, consultations
Product catalog in the Wix backend with a button to add a "new product" showing different product types available
Wix lets you add a variety of product types to your online store. Source: Wix

Did You Know? 💭

If you’re using Wix’s online store builder, you can add three main product types to your catalog: physical products, digital files, and print-on-demand goods.

You can also set up subscriptions for each product — Wix will ask for a subscription name, details (such as how often it repeats and the expiry date), and pricing. For services, simply install the free Wix Bookings app to offer appointments, classes, and courses.

Where Can I Sell Products Online?

A website builder is a great one-stop shop to build, manage, and grow your business — it’s what I’d recommend to anyone looking to create and grow brand awareness. But, for more casual sellers, online marketplaces help you reach active shoppers and social media is a great low-cost option for sellers with engaged communities.

To get set up as an ecommerce business, you need to consider where you want to sell online:

Ecommerce platform Example Costs Best for
Website builder Wix Medium All-in-one business management
Online marketplace Amazon, Etsy Low New sellers and entrepreneurs
Social media TikTok, Instagram Low Businesses already active on socials
AI search engines ChatGPT, Perplexity Low Targeting high-intent customers

How Do I Choose the Best Ecommerce Platform?

Ideally, your business should adopt a multichannel selling strategy to optimize your chances of making a sale, but you should look out for factors such as scalability, price (and hidden fees!), SEO, sales features, support, mobile-friendliness, and ease of use when choosing a platform.

Using an ecommerce website builder, like Wix, is the best option for any type of business. Not only can you design your site and set up marketing campaigns (with the support of AI), but you can also integrate your store with online marketplaces and connect your store with your brand’s social media accounts.

Wix partnered with Alibaba in 2025, providing merchants with direct access to the marketplace without needing to install a separate app. Of the top ecommerce website builders we tested, Wix is the only one to offer this. Plus, with Wix, everything is handled in one dashboard, making it easy for you to monitor performance, sales, and engagement.

How Can I Start My Own Ecommerce Business?

If you want to start your own ecommerce business and build an online store, follow the steps below:

  1. Register for a business license
  2. Determine your niche
  3. Set your branding
  4. Make or source your products
  5. Set up your online store (you can use Wix’s AI website builder, Wix Harmony)
  6. Build your community

Most importantly, do your research before getting started to ensure there’s demand for your products. Look at what competitors are doing in your market, pinpoint your target audience (recognize their pain points and needs), and find ways for your business to stand out.

Wix AI builder chatbot showing a site profile for a bookmark craft business
Wix’s AI builder generated a custom template for my business in less than five minutes. Source: Wix

Summary: Key Takeaways of Ecommerce

The world of ecommerce is vast and constantly growing, but it’s a welcoming environment for all kinds of sellers, from beginners to industry titans. If you’re looking to sell products or services online, remember to keep an eye on the common challenges, such as quality control and delivery, to reap the benefits of operating a 24/7 storefront.

Written by:
Headshot of Emma Ryan
Emma is Lead Writer at Website Builder Expert, having first joined the team in 2022. She manages the website's topical content strategy to help website owners navigate the highs and lows of being online. Emma also specializes in following the development of leading website builders Wix, Squarespace, and Shopify, through hands-on testing and research. Her work and expertise have been featured in Startups.co.uk, Digiday, TechRound, Industry Today, and Digital Information World.
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