What is E-commerce? Types, examples, and step-by-step creation

The term ecommerce, or electronic commerce, has become a fundamental part of today’s vocabulary. It refers, in simple terms, to the buying and selling of products or services over the internet. This business model allows companies and consumers to carry out commercial transactions without the need for a physical space, breaking geographical and time barriers.

This business model has gained increasing weight in the digital economy. According to data from the National Commission on Markets and Competition (CNMC), e-commerce in Spain exceeded €21.793 billion in revenue in the first quarter of 2024, with more than 412 million online transactions recorded during that period.

What are the types of e-commerce?

E-commerce can be classified according to the participants involved in the transaction or according to the business model used to sell products or services. Understanding these categories helps explain how different digital platforms operate.

Models according to participants

E-commerce is mainly classified according to the nature of the participants in the transaction. Understanding these categories is essential to grasp the dynamics of the digital market.

• Business-to-Consumer (B2C): the most well-known model, in which a company sells directly to end consumers. Everyday examples include buying clothing, technology, or any product from a brand’s online store.
• Business-to-Business (B2B): in this case, commercial transactions take place between two companies. An example would be a company selling management software to other organizations or a manufacturer selling components to a retailer.
• Consumer-to-Consumer (C2C): this model facilitates the sale of products between consumers. Second-hand platforms or marketplaces where individuals can list items they no longer use are a clear example of this category.
• Consumer-to-Business (C2B): a less traditional model in which individuals offer products or services to companies. A common example is influencers promoting brands on social media or photographers selling their images to stock photo banks.

According to the business model

Here, the classification is based on how the company generates its income and manages its inventory:

• Own online store: the company creates its own website to sell its products directly, having full control over the brand, design, and inventory management.
• Dropshipping: in this model, the store sells products to customers but does not manage inventory or shipping. When a sale is made, the order is forwarded to a wholesale supplier, who is responsible for shipping the product directly to the end customer.
• Marketplace: a large online platform where multiple sellers can offer their products. The platform acts as an intermediary, providing infrastructure and visibility in exchange for a commission on each sale. Amazon or Etsy are clear examples.
• Subscription model: customers make recurring payments (monthly or yearly) to receive products or access services periodically. This model is common in beauty boxes, streaming services, or software as a service (SaaS).
• Affiliate marketing: the business is based on promoting and recommending third-party products. The company creates content (blogs, comparisons, videos) and includes affiliate links. If a user purchases through that link, the affiliate receives a commission.

Advantages and disadvantages of e-commerce

Like any business model, ecommerce presents a series of benefits and challenges for both companies and consumers.

Advantages:

• Global reach: allows companies to overcome geographical barriers and access a global market, selling their products to customers anywhere in the world.
• Cost reduction: operating costs are usually lower compared to a physical store, as expenses such as renting a commercial space, hiring large staff, or maintaining a storefront are eliminated.
• 24/7 availability: an online store is open 24 hours a day, 7 days a week, allowing customers to shop anytime and from anywhere.
• Personalization: it enables the collection of customer data to personalize the shopping experience, offering products and deals tailored to their interests.

Disadvantages:

• High competition: the barrier to entering the online market is relatively low, which creates intense competition with major industry players and other small businesses.
• Security and trust issues: data security and consumer distrust when making online payments are major barriers that require investment in secure systems to build credibility.
• Logistics and shipping: inventory management, packaging, and shipping are complex and can be costly, especially for large products or returns.
• Lack of personal interaction: the absence of physical contact with the product and direct personal service can make purchasing decisions and customer loyalty more difficult.

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How to create an online store step by step?

Launching an ecommerce project goes beyond simply creating a website. It requires detailed strategic planning to build a sustainable and profitable business. Below, we break down the process into key steps.

1. Research and business strategy phase

Before writing a single line of code or choosing a design, it is crucial to establish a solid foundation.

• Defining the market niche: instead of trying to sell everything, specialize. Research markets with real demand but manageable competition. Use tools such as Google Trends to analyze trends, study competitors to find weaknesses, and define a unique value proposition (UVP) that differentiates you.
• Choosing the business model: decide how you will manage your inventory. Will you buy and store your own products (stock-based model)? Will you use dropshipping, where a third party ships products for you? Or will you sell digital products? Your choice will directly affect your initial investment and logistics.
• Target audience analysis: create a detailed profile of your ideal customer or “buyer persona”. Do not limit yourself to demographics; go deeper into their needs, buying motivations, online channels they use, and possible objections. This will allow you to tailor your products, messaging, and marketing campaigns much more effectively.
• Business plan and feasibility: develop a document to guide your actions. It should include supplier analysis, a pricing strategy that considers costs and profit margins, and realistic financial projections for initial investment and break-even point.

2. Legal and technical setup phase

Once the strategy is defined, it is time to build your store’s infrastructure.

• Legal and tax aspects: this step is essential and often overlooked. Register as self-employed or create a company, register your trademark, and ensure your website complies with current regulations (GDPR). You must also draft and display the required legal texts: Legal Notice, Privacy Policy, Cookie Policy, and General Terms and Conditions of Sale.
• Domain and platform selection: register a domain name that is short, easy to remember, and representative of your brand. Then choose the ecommerce platform that best fits your project. Consider scalability, ease of use, budget, and technical knowledge before deciding on options such as Shopify, WooCommerce, PrestaShop, or others.
• Online store design and development:
  User Experience (UX): design a logical and intuitive navigation structure. Customers should be able to find what they are looking for in just a few clicks. Optimize the checkout process to make it as simple and fast as possible.
  Visual Design (UI): invest in professional product photography. Your website design should be clean, attractive, mobile-friendly (responsive or mobile-first), and consistent with your brand identity.

3. Launch and growth phase

With the store built, the focus shifts to attracting customers and growing the business.

• Logistics and payment methods setup: integrate secure and well-known payment gateways such as Stripe, PayPal, or Redsys to build trust. Define your shipping strategy: set clear rates, choose carriers, and decide whether to offer options such as free shipping above a certain order value.

• Digital marketing strategy: the launch is just the beginning. You must implement an ongoing marketing plan to generate qualified traffic and sales.

  This includes:

• SEO: search engine optimization. It helps attract organic traffic in the long term.
• Content marketing: creating a blog or guides that provide value to your target audience.
• Online advertising (SEM): investing in ads on Google or social media to gain immediate visibility.
• Social media: building a community around your brand and using platforms as a sales and customer service channel.

Coordinating all these areas is a complex task that often requires a specialized profile. The role of an Ecommerce Manager becomes key at this stage to lead the strategy, analyze results, and optimize actions to ensure business growth.

Most used platforms to create ecommerce stores

There are numerous platforms that make it easier to create and manage an online store, each with its own characteristics. The choice depends on technical knowledge, budget, and desired scalability.

• Shopify: one of the most popular solutions, especially for beginners and SMEs, due to its ease of use and all-in-one approach, which includes hosting, security, and support.
• WooCommerce: a free WordPress plugin that turns a website into a fully functional online store. It is highly flexible and customizable, ideal for those already using WordPress, although hosting and security must be managed separately.
• PrestaShop: a powerful and flexible open-source platform with many modules for adding functionality. It offers a free option, but may require more technical knowledge for setup and maintenance.
• Magento (Adobe Commerce): designed for medium and large companies with high sales volumes. It offers an open-source (free) version and a paid version with advanced features, but its technical complexity is high.

To get the most out of these tools and develop effective growth strategies, specialized training is recommended. Programs such as the Master in Marketing Management provide a strategic business vision, while a Master in Digital Marketing & Growth Hacking offers the tactical knowledge needed to boost visibility and sales in the competitive online environment.

What is the difference between ecommerce and e-business?

Although both concepts are often used as synonyms, they do not mean exactly the same thing.

Ecommerce refers specifically to the buying and selling of products or services over the internet.

In contrast, e-business includes all digital processes within a company.

This includes:

• Supplier management
• Digital marketing
• CRM systems
• Digital logistics
• Internal data management

In other words, ecommerce is only part of e-business, which covers the entire digital structure of an organization.

E-commerce has become a central pillar of the digital economy. Its constant growth reflects the transformation of consumer habits and the digitalization of businesses. Understanding its models, advantages, and how it works makes it possible to identify new business opportunities and adapt to an increasingly connected market.