📘 CodingMarble Learn

E-commerce

E-commerce is buying and selling goods and services over the internet. It is a form of non-store retailing, like telemarketing and catalogue selling. By who sells to whom, it can be B2C, B2B, C2C or D2C. Marketplaces join many sellers and buyers on one platform and earn a commission. M-commerce is e-commerce on mobile phones, often with digital payments. Physical shops also become digital, using QR codes, screens and click-and-collect, and firms that combine channels are omnichannel. Behind every order is e-retail logistics: warehouses, picking and packing, hubs, last-mile delivery and returns. E-marketing (search, social media, email) brings customers to the online shop.

🎬 Step-by-step story

  1. E-commerce: choose and pay on a screen, a warehouse packs, and the parcel comes to your door.
  2. Who sells to whom? B2C, B2B, C2C and D2C are the four main types.
  3. A marketplace is one platform where many sellers meet many buyers. It earns a commission.
  4. M-commerce is shopping on a phone. Shops also go digital with QR codes and click-and-collect.
  5. Logistics moves the parcel: warehouse, hub, last mile, and returns coming back.
  6. Your turn: change the price and commission. See how much the seller really gets.

Tip: drag the 3D scene to turn it. Use two fingers to zoom.

🤔 Common doubts, cleared

Is e-commerce the same as e-business?

E-commerce is the buying and selling part. E-business is wider: it also includes online banking, supply chain, hiring and internal work done digitally.

Does the marketplace own the products it sells?

Usually not. Independent sellers own them; the platform connects buyers and sellers and takes a commission.

What is the difference between C2C and D2C?

C2C is one person selling to another person. D2C is a brand selling directly to customers without shops in between.

Why do I see 'free delivery' if delivery costs money?

The seller or platform pays it from the price or commission. Someone always pays for the last mile.

Will online shopping replace shops?

Not fully. Many shops go digital and combine online and offline (omnichannel), like click and collect.

Why does a parcel go to a hub first and not straight home?

Hubs sort thousands of parcels by area so one van can carry many parcels to one locality, which saves cost.

Internet business and the types of e-commerce

E-commerce means buying and selling goods or services through the internet: on a website, an app or social media. It is a kind of internet business, which also includes online services, banking and booking.

Types by who sells to whom

Benefits and limits

Marketplaces

A marketplace is a platform where many independent sellers list products and many buyers shop. The platform usually does not own the goods (an inventory-led online shop does). It earns money from commission on each sale, listing fees, advertising and delivery charges.

Network effect: more buyers attract more sellers, and more sellers attract more buyers.

M-commerce and digitalised shops

M-commerce (mobile commerce) is e-commerce on a smartphone: shopping apps, mobile wallets, UPI and QR payments, and social media shops. Most online orders in many countries now come from phones.

Digitalised shops

Physical shops also use digital tools:

A firm that links all its channels so the customer can move between them smoothly is omnichannel. Shops that only sell offline are 'brick and mortar'; 'click and mortar' firms do both.

E-retail logistics

Logistics is moving and storing goods so they reach the customer on time. For online retail the steps are:

  1. Warehouse / fulfilment centre: stock is stored and tracked.
  2. Pick and pack: the items of an order are collected and packed.
  3. Sort at hubs: parcels are grouped by area.
  4. Last-mile delivery: from the nearest hub to the door. It is the most costly part.
  5. Reverse logistics: returns and exchanges come back.

Other ideas: cash on delivery, dark stores (small warehouses for quick delivery), and drop-shipping (the supplier ships directly; the seller never holds stock).

E-marketing and telemarketing (non-store retail)

Non-store retailing sells without a physical shop: e-commerce, telemarketing, TV shopping, catalogue (mail order), vending machines and direct selling.

E-marketing

Using the internet to bring buyers to the online shop: search ads and SEO, social media, email, influencers, and personalised suggestions based on past shopping.

Telemarketing

Selling or promoting by telephone. Outbound: the firm calls customers. Inbound: customers call a number shown in an ad. It gives a personal touch but can annoy people; many countries have 'do not call' registers that firms must respect.

Try it

Look at your last online order (or ask a family member). Write which type it was (B2C, C2C, D2C) and list the steps from 'click' to 'doorstep'. Then, in the 3D free play, set a ₹1,000 item and raise the commission. At what commission does the seller get less than ₹800?

Key formulas and definitions

Worked examples

1. A ₹1,200 item sells on a marketplace with 10% commission and ₹50 shipping. How much does the seller get?

Commission = 10% of 1,200 = ₹120. Seller gets 1,200 − 120 − 50 = ₹1,030.

2. A student sells her old cycle to another person through an app. Which type of e-commerce is this?

C2C (consumer to consumer).

3. An online shoe store sold 2,000 pairs and 240 came back. Find the return rate.

Return rate = 240 ÷ 2,000 × 100 = 12%.

4. A clothing brand lets you order online and pick up from its mall store the same evening. Name this service and the strategy.

Click and collect, part of an omnichannel strategy (online and store linked).

5. Seller A: ₹800 item, 20% commission, ₹40 shipping. Seller B: ₹700 item, 8% commission, ₹60 shipping. Who gets more per sale?

A: 800 − 160 − 40 = ₹600. B: 700 − 56 − 60 = ₹584. Seller A gets ₹16 more.

6. Why is last-mile delivery the most expensive part of e-retail logistics?

Each van carries few parcels to many different addresses, with traffic, failed deliveries and cash collection, so the cost per parcel is high.

Common mistakes

Practice quiz

1. Buying and selling over the internet is called:
2. A factory ordering steel online from a supplier is:
3. Shopping on a smartphone app is called:
4. The delivery from the nearest hub to the customer's door is the:
5. A firm calling customers to sell a plan is doing:

Practice: answer these yourself

Type or choose your answer, then press Check. Use a hint if you are stuck; the full solution appears after you answer.

Frequently asked questions

What is e-commerce in simple words?

Buying and selling goods or services over the internet, using a website, app or social media, with online payment and delivery.

What are the types of e-commerce?

B2C, B2B, C2C and D2C are the main ones; C2B and B2G are also used.

What is the difference between e-commerce and m-commerce?

M-commerce is the part of e-commerce done on mobile phones and tablets, often with mobile payments.

Where this is taught

CBSE (India)Class 12Non-store Retailing
FranceTerminaleSpecific option — marketing

Learn first

Learn next

Related lessons

All Business Studies lessons