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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →E-commerce is the buying and selling of goods or services through online channels. It includes more than a checkout page: online advertising and brand building can support sales, too. To get started, decide who you want to sell to, compare the available sales channels, and check that your chosen route works for your product and intended market.
What does e-commerce mean?
E-commerce, or electronic commerce, is commerce conducted through online sales channels. The U.S. International Trade Administration (ITA) describes it as a sales channel used across industries, including online promotion and brand awareness that support sales. That means a business does not need to sell only through its own website to engage in e-commerce, and the activity is not limited to the moment a customer pays.
The ITA’s definition includes business-to-business and business-to-consumer activity, as well as sales within one country and across national borders. It treats e-commerce as part of a business’s digital strategy. See the ITA’s eCommerce Definitions and eCommerce overview.
What are the main types of e-commerce?
E-commerce labels describe different aspects of a transaction. B2B and B2C identify the parties; domestic and cross-border identify geography. A marketplace or platform describes a sales route, not a type of buyer.
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| Label | What it describes | Example |
|---|---|---|
| B2B (business to business) | A sale between businesses. | A supplier sells goods in bulk to another business. |
| B2C (business to consumer) | A business sells to an individual customer. | A shop sells directly through its website or a marketplace. |
| Domestic e-commerce | The transaction takes place within one country. | A seller and buyer transact within the same national market. |
| Cross-border e-commerce | A business sells online to a buyer in another country. | A seller reaches customers overseas. |
| Marketplace | A third-party site hosts vendor storefronts and processes transactions. | Multiple sellers list products on one shopping site. |
| E-commerce platform | Integrated software that supports sales through a business’s website. | A seller uses software to present products and take orders on its own site. |
These categories can overlap. A business could sell B2C within its home country through its own platform and also list products on a marketplace; selling to overseas buyers would add a cross-border dimension.
How can you start selling online?
First identify the product or service and the intended customer. Decide whether the buyer is another business or an individual, then choose an initial sales route based on the control you need, setup effort, customer reach, costs, and your capacity to manage orders and service. The U.S. Small Business Administration (SBA) described five routes in an article published December 19, 2019. Its named services and descriptions are historical examples, not confirmation of current features or terms. Read the SBA’s comparison.
1. Build a standalone online store
A standalone store can give you more control over the storefront and customer experience. You need to arrange the site, including hosting and a domain, and create its design, product content, and functionality. This route can involve more setup work than using a ready-made service.
2. Use a hosted e-commerce platform
A hosted platform can speed setup with prebuilt functionality, but may offer less detailed control and charge recurring fees. The SBA’s 2019 article named Shopify, BigCommerce, and Big Cartel as examples; check current offerings, availability, and terms directly before choosing a service.
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A marketplace may put your products in front of an existing audience, but you have less control over storefront design and compete alongside other listings. Listing fees or commissions may apply. Amazon, eBay, and Etsy were examples in the SBA’s 2019 article; those mentions do not establish current fees or terms.
4. Sell through social media
Social selling can help you reach people on platforms they already use. However, browsing a social feed may not signal the same shopping intent as visiting a dedicated shopping destination, so turning attention into purchases may take work. Social-commerce features can change, so verify what is available for your location and account.
5. Add e-commerce tools to an existing site
If you already have a website, payment tools or buy buttons may let you add online sales without rebuilding the whole site. Combining separate components can also make operations more complicated to manage.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What should you compare before choosing a channel?
No route is best for every seller. Compare the practical trade-offs before committing to a storefront or marketplace.
- Control: How much say do you need over design, product presentation, and the buying experience?
- Setup effort: Do you have the time and capacity to build and maintain a site, or would prebuilt tools help?
- Customer reach: Do you need to build an audience from scratch, or could a marketplace or social channel help people discover your offer?
- Cost structure: Check recurring charges, listing fees, commissions, and any costs of coordinating separate tools. Confirm current terms with the provider.
- Operational fit: Consider whether you can manage product information, orders, customer support, and the technology involved.
- Market fit: Confirm that the channel supports the intended product and the countries where you plan to sell.
What changes when you sell across borders?
Cross-border e-commerce means selling online across a national border. Reaching overseas buyers adds geographic complexity to the channel choice, so verify that your selected route and product can serve the intended market. The ITA recommends beginning export efforts with a digital strategy and offers U.S. Commercial Service counseling to businesses seeking overseas customers. This is U.S.-focused support; it is not a universal legal or financial checklist.
What e-commerce does not tell you about the cost of starting
There is no single startup cost or standard set of legal requirements established here for every online business. Registration, tax, privacy, consumer-protection, payment, and shipping obligations depend on the seller’s location, the product, and the markets served. Check the rules that apply to your situation before taking orders. Likewise, the existence of an online store does not establish that it will earn a particular amount. The Federal Trade Commission’s August 7, 2025 Vision Online order concerns specific parties and their earnings claims; it should not be read as a general guide to all e-commerce businesses.
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