What Is E-commerce and How Does It Work?

E-commerce is the buying and selling of goods or services online. From large marketplaces to small Instagram shops, all e-commerce businesses share the same basic parts.

What a typical store needs

• Product listings with photos, prices and descriptions.
• Search and categories.
• A cart or order flow.
• Payment options.
• Order management and delivery.
• Customer support.
• Clear shipping and return policies.

Business models

• Own store: you sell your own products.
• Marketplace: many sellers on one platform.
• Affiliate: you refer shoppers to merchants for commission.
• Dropshipping: suppliers ship orders you take.
• Digital products: files delivered online.

Responsibilities

Before launching, decide who is the seller of record, who takes payment, who fulfils orders and who handles refunds and disputes. Different models assign these differently.

Seller duties

Keep product descriptions and stock accurate and protect customer data. Honest information reduces returns and complaints.

E-commerce in Pakistan

Cash on delivery, mobile wallets, courier networks and social media selling make e-commerce in Pakistan unique. Many businesses combine their own store with marketplaces and WhatsApp.

Frequently asked questions

What is the difference between e-commerce and a marketplace?

E-commerce is all online selling; a marketplace is one type where many sellers list products on a single platform.

Do I need a website for e-commerce?

Not necessarily. You can sell on marketplaces and social media, but your own store gives you more control.