An ecommerce business is a company that generates revenue from selling products or services online. For example, an ecommerce company might sell software, apparel, housewares, or web design services. You can run an ecommerce business from a single website or through multiple online channels like social media and email.

Ecommerce works by connecting buyers and sellers using various electronic channels. For example, you need a channel, such as a website or social media, so customers can find products and services to purchase. Then a payment processor enables the exchange of the goods or services. Once the transaction succeeds, the customer receives a confirmation email or SMS, and a printable receipt.

If the transaction is for goods, then the seller ships the items and sends the customer a tracking number via email or SMS. If the transaction is for a service, then the service provider can reach out to schedule and complete the service.