What is Ecommerce? And How to start an ecommerce business in 2025

eCommerce

eCommerce (electronic commerce) refers to buying and selling goods or services online. It includes various business models such as:

B2C (Business to Consumer) – e.g., Amazon, Nike’s online store

B2B (Business to Business) – e.g., Alibaba, wholesale suppliers

C2C (Consumer to Consumer) – e.g., eBay, Facebook Marketplace

D2C (Direct to Consumer) – e.g., brands selling directly via Shopify

Dropshipping & Print-on-Demand – Selling without holding inventory

How eCommerce Works

A customer visits an online store – via a website or mobile app.

They browse products – checking descriptions, reviews, and prices.

They add items to a shopping cart – and proceed to checkout.

Payment is processed – through PayPal, credit cards, or digital wallets.

The order is fulfilled – by shipping from a warehouse or through dropshipping.

Examples of eCommerce Platforms

Shopify – Great for beginners.

WooCommerce – For WordPress users.

Amazon & eBay – Sell on established marketplaces.

BigCommerce – Scalable for larger businesses.

Online Purchasing Payment E-commerce Banking

Advantages of eCommerce

✔ 24/7 availability for customers.
✔ Low startup costs compared to physical stores.
✔ Global reach – sell to customers worldwide.
✔ Automated processes (payments, marketing, fulfillment).

How to Start an eCommerce Business

If you’re looking to start an eCommerce business, here’s a step-by-step guide to help you launch successfully.

Cropped image of woman inputting card information and key on phone or laptop while shopping online.

Step 1: Choose a Profitable Niche

A niche is a specific market segment you want to target. Picking the right niche can determine your success.

Find trending products – Use Google Trends, Amazon Best Sellers, TikTok trends, Etsy hot products.
Identify customer pain points – What problems can your product solve?
Check competition – Look at other online stores and their strategies.
Evaluate profitability – Can you price products competitively and still make a profit?

Examples of Profitable Niches in 2025:
✅ Eco-friendly & sustainable products
✅ Smart home gadgets
✅ Personalized & custom products (Print-on-Demand)
✅ Fitness & wellness gear
✅ Pet accessories

Step 2: Choose Your eCommerce Business Model

Your business model will determine how you source and sell products.

🔹 Dropshipping – No inventory needed, supplier ships directly to customers. (Best for beginners)
🔹 Print-on-Demand – Sell custom designs on T-shirts, mugs, phone cases.
🔹 Private Labeling – Create a brand with custom packaging and logos.
🔹 Wholesale/Retail – Buy in bulk and sell for a markup.
🔹 Subscription Model – Monthly product deliveries (e.g., subscription boxes).

💡 Best Dropshipping Suppliers: AliExpress, Spocket, Zendrop, CJDropshipping
💡 Best Print-on-Demand Platforms: Printful, Gelato, Teespring

laptop and shopping bags, online shopping concept.

Step 3: Choose an eCommerce Platform

Your platform is where your online store will be built.

💻 Best eCommerce Platforms:
Shopify – Easiest & most popular, great for beginners.
WooCommerce (WordPress plugin) – More flexible but requires setup.
BigCommerce – Ideal for large stores.
Wix eCommerce – Good for small businesses, but limited scalability.
Amazon, Etsy, eBay – Sell on marketplaces with built-in customers.

Young man using a discount coupon on his smartphone to do some online shopping on the laptop https://www.coursera.org/articles/ecommerce-business

Step 4: Set Up Your Online Store

🛍 Steps to Build Your Store:
✔ Buy a domain name (GoDaddy, Namecheap)
✔ Choose a theme and design your store
✔ Write product descriptions with SEO optimization
✔ Add high-quality product images & videos
✔ Set up a payment gateway (PayPal, Stripe, credit cards)
✔ Add important pages (About Us, Contact, Refund Policy)

💡 Pro Tip: Use AI-powered chatbots for customer support

Step 5: Set Up Shipping & Order Fulfillment

📦 Fulfillment Options:
Dropshipping – Supplier handles shipping.
Amazon FBA – Amazon stores & ships products for you.
Third-party logistics (3PL) – Companies like ShipBob handle warehousing.
In-house fulfillment – You store and ship products yourself.

🚚 Shipping Strategies:
✅ Free shipping (higher conversion rates)
✅ Flat-rate shipping (simplifies pricing)
✅ Real-time carrier rates (based on location)

Step 6: Market Your eCommerce Store

🚀 Marketing is key to getting sales!

SEO (Search Engine Optimization) – Optimize product descriptions for Google.
Social Media Marketing – Instagram, TikTok, Pinterest, Facebook.
Influencer Marketing – Partner with influencers to promote products.
Paid Ads – Run Facebook Ads, Google Ads, TikTok Ads.
Email Marketing – Collect emails & send promotional offers.

💡 Best Marketing Tools: Klaviyo (email), Google Analytics, Meta Ads Manager.

Step 7: Scale & Grow Your Business

📈 Once you start making sales, focus on scaling!

✅ Optimize conversion rates (A/B testing, better landing pages)
✅ Expand product lines (Add more in-demand products)
✅ Automate operations (AI chatbots, email automation)
✅ Offer subscriptions & recurring revenue models
✅ Sell globally (International shipping options)

Conclusion

Starting an eCommerce business in 2025 is a great opportunity, but success depends on choosing the right niche, setting up a high-converting store, and using smart marketing strategies.

Share This Article

What is Ecommerce? And How to start an ecommerce business in 2025