What is e-commerce and how does it work?

E-commerce, or electronic commerce, has revolutionized the way we buy and sell products. It emerged in the 1990s, when the internet began to gain traction. Today, it is an essential part of the global market. But what is e-commerce and how does it work? Basically, it is a business model where all transactions are made online. From choosing the product to paying for it, everything happens online. It is like having a store open 24 hours a day, accessible from anywhere in the world.

Main Conclusions

• E-commerce is the sale of products and services over the internet.
• It offers global reach, reducing geographical barriers.
• Allows 24/7 operation, without time restrictions.
• Facilitates inventory and logistics management in an integrated manner.
• Requires attention to data security and customer experience.

What is E-commerce and How Did It Come About?

History of E-commerce

E-commerce, or electronic commerce, is a modern way of buying and selling products and services over the internet. It all started back in the 1970s , when the first exchanges of orders via electronic files began to take place in the United States. This was done through EDI (Electronic Data Interchange), a technology that allowed documents to be sent between companies. But it was in 1979 that Englishman Michael Aldrich went a step further, creating the first "online shopping mall" that allowed B2C (Business to Consumer) and B2B (Business to Business) transactions. Over time, e-commerce only grew, especially with the arrival of the 1990s, when giants like Amazon and eBay entered the game.

E-commerce emerged as a natural evolution of commerce, adapting to new technologies and people's desire for more convenience and options.

First Online Transactions

The first online transactions were very different from what we know today. At first, everything was somewhat experimental and not accessible to everyone. Over time, technology improved and, in the 90s, the scenario really started to change. Companies began to realize the potential of the internet to sell their products, and soon platforms like Amazon began to appear, making online shopping more popular and safer.

Evolution in Brazil

In Brazil, e-commerce began to gain momentum in 1995 with the creation of Book Net, which later became Submarino, one of the largest online stores in the country. Since then, e-commerce has only grown, and today it is an essential part of the Brazilian economy. Wider access to the internet and increased consumer confidence in online shopping have contributed greatly to this evolution. Today, millions of Brazilians shop online, taking advantage of the convenience and offers that only e-commerce can offer.

E-commerce in Brazil is not just a passing fad; it is here to stay and will continue to expand more and more.

Advantages of Investing in E-commerce

Investing in e-commerce is like opening a door to a world without borders. You can sell to anyone, anywhere, at any time. Let’s explore some of the main advantages of having an e-commerce business.

Global Reach

In e-commerce, there are no geographical limits. You can sell to people on the other side of the world, expanding your market without having to open physical stores in each location. This means that your product can be known and accessible to a much larger audience.

Cost Reduction

Running a physical store can be expensive. We’re talking about rent, electricity bills, water bills, security, and more. With an e-commerce business, these costs are significantly reduced. You can start with just a computer and an internet connection. Plus, there are several online tools that help keep costs down.

Flexible Schedule

Who doesn’t love the idea of ​​a 24/7 store? In e-commerce, this is entirely possible. Your store is always available to customers, which means you can make sales while you sleep. Plus, automating processes allows you to run your business more efficiently without having to be online all the time.

E-commerce offers advantages such as low start-up costs, increased market reach, 24-hour operation, automation, retargeting, ease of growth, and an improved shopping experience. These features make e-commerce an attractive option for entrepreneurs.

In short, investing in e-commerce can be an excellent way to expand your business with reduced costs and greater flexibility. With the advancement of technology and the increase in online consumption, the opportunities will only grow.

Types of E-commerce and Their Particularities

B2B, B2C, C2C and D2C

When we talk about e-commerce , it is important to understand that there are different models, each with its own unique characteristics. B2B (Business to Business) is when companies sell to other companies. B2C (Business to Consumer) is the most common, where companies sell directly to the end consumer. C2C (Consumer to Consumer) is the format where consumers sell to other consumers, like what happens on Mercado Livre. And finally, D2C (Direct to Consumer) is when manufacturers sell directly to the consumer, without intermediaries. Each model has its own particularities and meets different market needs.

Differences Between E-commerce and Marketplace

It is common to confuse e-commerce with marketplace, but they are not the same thing. An e-commerce is an online store that represents a single brand or company. A marketplace is like a virtual shopping mall, where several stores come together to sell their products in a single place. This means that in a marketplace, you have a greater variety of products and prices, since different sellers are competing in the same space.

Business Model Examples

To understand better, let's look at some examples:

1. Own e-commerce : Imagine a clothing store that only sells its own pieces through its exclusive website.
2. Marketplace : Think of Amazon, where you can find everything from electronics to household items from different sellers.
3. Social media : Sell through Instagram or Facebook using posts or paid ads.

The world of e-commerce is vast and full of possibilities. Choosing the right model can make all the difference in the success of your online business.

How E-commerce Works in Practice

Let's see, e-commerce is like a street store, but on the internet. The big difference is that you can buy without leaving your couch, at any time of the day or night. And that's just the beginning! Let's see how it all works in practice.

Purchase and Sale Process

It all starts when a customer finds your online store. This can happen in a number of ways: a quick Google search, a cool post on Instagram, or even a tip from a friend. Once in the store, the customer browses the products, chooses what they want, and adds it to the cart. When it’s time to pay, they fill in the payment and delivery details. Then, all they have to do is wait for the product to arrive at their home. Simple, right?

Inventory and Logistics Management

Having good inventory control is essential. You don't want to sell something you don't have, right? In addition, you need to think about logistics: how and when the product will be delivered. Many stores use shipping companies or the Post Office for this. And if it's a digital product? Delivery is immediate, straight to the customer's email!

Online Payment Tools

When it comes to paying, customers have several options: credit card, bank slip, Pix... it's important to offer different methods to make things easier for customers. Tools like Checkout Pro help make the process faster and safer.

In e-commerce, the customer is always just one click away from completing the purchase. Therefore, it is crucial that the entire process is easy and quick, ensuring a positive experience for the user.

So, is it clearer how e-commerce works? It's a world full of possibilities and, with good planning, you can be successful in this market!

Choosing the Ideal E-commerce Platform

For those who are just starting out or already have an online store, choosing the right e-commerce platform is like choosing the foundation for your home. It is essential that it is solid and meets all your needs. Let’s take a look at the main points you should consider.

Main Market Platforms

There are several options on the market, each with its own particularities. Some of the best-known are Shopify, WooCommerce, Magento and VTEX. Each of them has its advantages and disadvantages, so it is important to understand what each one offers:

• Shopify : Easy-to-use platform , ideal for beginners who don't want complications. Supports both physical and digital products.
• WooCommerce : A WordPress extension, perfect for those who already use this CMS and want something integrated.
• Magento : More robust, suitable for large companies that need a lot of customizations.
• VTEX : Widely used in Brazil, great for those looking for integration with marketplaces.

Selection Criteria

When choosing, consider:

1. Ease of Use : The platform must be intuitive, so that you can manage your store without complications.
2. Cost : Evaluate the cost-benefit. Some platforms have monthly fees, others charge per transaction.
3. Features : Check if the platform offers everything you need, such as integration with social networks, marketing tools, etc.
4. Support and Community : Having good support is essential. Platforms with large user communities are also a plus.
5. Scalability : Think about the future. The platform should support the growth of your business without requiring major changes.

Necessary Integrations

Integration with other systems is crucial. Here are some essential integrations:

• ERP : For inventory and finance management.
• Payment Gateways : Such as PayPal, Stripe or PagSeguro, to facilitate transactions.
• Marketing Tools : Like Google Analytics and Mailchimp, to better understand your audience and create effective campaigns.

Choosing the right platform is a vital step towards the success of your e-commerce business. Take your time, research and test. The time invested in this step can save you a lot of headaches in the future.

Marketing Strategies for E-commerce

SEO and Content

When it comes to SEO for e-commerce , the idea is to ensure that your online store appears at the top of search engines. This not only increases visibility, but also attracts visitors who are genuinely interested in what you offer. To achieve this, it is essential to:

• Research relevant keywords that your potential customers are using.
• Create quality content that answers users' questions.
• Optimize product descriptions and use high-quality images.

Furthermore, content marketing is a strategy that never goes out of style. Keeping a blog updated, for example, can attract more visitors and strengthen your brand’s authority.

Paid Advertising

Investing in paid advertising is an effective way to quickly reach a larger audience. Platforms like Google Ads and Facebook Ads allow you to precisely target your audience, ensuring that your ads are seen by the people who really matter. This is especially useful for seasonal promotions or product launches.

Social Networks and Influencers

Social media is a powerful channel for engaging with your audience. Building a strong presence on Instagram, Facebook, or even TikTok can do wonders for your business. Consider partnering with influencers who have an audience that aligns with yours, as this can increase trust and visibility for your brand.

In the world of e-commerce, being where your customers are is more than a strategy, it’s a necessity. Social media isn’t just about selling, it’s about creating a real connection with your audience.

To stand out in the e-commerce world of 2025, it’s essential to align content with the customer, constantly optimize, and analyze data to understand consumer behavior. Learning from big brands reveals that SEO is an ongoing process, and adapting to market changes is crucial. Despite fierce competition from giants like Amazon, small businesses can stand out by offering exceptional customer service, unique products, and building a loyal community on social media.

Common Challenges in E-commerce

Navigating the world of e-commerce isn’t all sunshine and roses. There are some challenges that can be a headache for beginners and even for those with more experience in the field. Let’s take a look at the main ones.

Cart Abandonment

Cart abandonment is one of the biggest villains in e-commerce. Just imagine, the customer puts everything in the cart and when it's time to pay... puff, it disappears! This can happen for several reasons, such as:

• Unexpected extra costs: delivery fees or taxes that only appear at the end of the purchase.
• Complicated checkout process: too much information requested or too many steps to complete.
• Lack of payment options: if the customer cannot find the payment method they prefer, they may give up.

To deal with this, it’s a good idea to invest in a smooth and transparent shopping experience.

Data Security

Data security is a growing concern. With so much personal information being shared online, ensuring that this information is secure is essential. Protecting against fraud and data breaches is essential to maintaining customer trust. Using robust encryption and security systems is a good place to start.

Customer service

Good customer service can make all the difference. In the online world, where there is no physical contact, it is important to have efficient communication channels, such as chatbots or support via social media. Responding quickly and resolving issues effectively helps keep customers happy and loyal to your brand.

"In e-commerce, every interaction is a chance to win over a customer. Don't waste this opportunity!"

Dealing with these challenges can be complicated, but with planning and the right strategies, you can overcome them and make your e-commerce a success.

E-commerce Trends for the Future

Artificial Intelligence and Automation

Artificial intelligence (AI) is increasingly present in e-commerce, making processes more efficient and personalized. With AI, it is possible to create unique shopping experiences , from product recommendations to chatbots that provide real-time service. Automation not only improves efficiency, but also frees up time for entrepreneurs to focus on more creative strategies.

Sustainability in E-commerce

Sustainability is no longer optional. Consumers are demanding greener, more responsible practices. This means investing in recyclable packaging, optimizing delivery routes to reduce carbon emissions, and even promoting products from companies that share these values. It’s a trend that not only helps the planet, but also improves brand image.

Social Commerce Expansion

Social commerce is growing rapidly, with platforms like Instagram and TikTok becoming true marketplaces. Brands are leveraging these networks to create a more direct connection with consumers, using influencers and user-generated content to drive sales. It’s a way to turn social interactions into business opportunities.

"In the future of e-commerce, personalization and sustainability will go hand in hand, creating a more conscious and connected market."

With Brazilian e-commerce expected to surpass R$900 billion by 2025, it is essential that companies prepare for an increasingly competitive and innovative market. The key to success will be investing in technology and personalization , ensuring that customer experience is a top priority.

E-commerce Statistics in Brazil

E-commerce in Brazil has shown impressive growth in recent years. Let’s take a look at the numbers that prove this trend:

Sector Growth

Brazilian e-commerce saw a 6% increase in sales in the first half of 2022, totaling an impressive R$118.6 billion. This growth reflects consumers’ adaptation to the digital environment and growing confidence in online shopping.

Online Consumer Profile

With around 49.8 million online shoppers at the start of 2022, Brazil saw an 18% growth compared to the previous year. This represents a significant shift in consumer behavior, with consumers now preferring the convenience and variety offered by digital shopping.

Note: As the number of consumers increased, the most popular product categories also evolved. Food and beverages led the way with a 128% growth in orders, followed by perfumes and cosmetics (+24%), babies and co (+17%), and health (+15%).

Impact of the Pandemic

The pandemic was a catalyst for the growth of e-commerce in Brazil. Despite a slight slowdown after the peak of the pandemic, the sector remains strong. In 2023, while the number of orders decreased, consumers opted for products with a higher average ticket price, demonstrating a maturity in the market.

These figures leave no doubt: e-commerce in Brazil is booming and Brazilian online stores are standing out in several categories, such as food, electronics and fashion. The future looks bright for e-commerce in the country.

How to Create an E-commerce from Scratch

Planning and Research

Before anything else, you need to plan. This is the stage where you will define what you want to sell, who your target audience is and how you will stand out in the market. Think about the products that have sales potential and do in-depth research on the chosen niche. Choosing a good niche is half the battle to success!

1. Define your niche : What are you going to sell? Choose something that is in demand and that you know well.
2. Know your target audience : Who are your customers? Understand their needs and wants.
3. Competitor Analysis : See who your competitors are and how they are performing.

Good planning is like the foundation of a house: without it, everything falls apart.

Website Development

Now that you know what you’re going to sell and to whom, it’s time to get down to business and create your online store. There are two main options: hiring a developer or using an e-commerce platform.

• Developer : Ideal if you want something completely custom, but can be expensive and time consuming.
• E-commerce platforms : Solutions like Shopify or WooCommerce are practical and quick to implement.

Choose the option that best suits your budget and needs. Don’t forget to make sure your website is responsive and easy to navigate.

Launch and First Sales

With your website ready, it's time to launch your e-commerce site. But it's not enough to just put it online and wait for sales. You need to promote it!

1. Digital Marketing : Use social media, SEO and paid ads to attract customers.
2. Launch Promotions : Offer discounts or free shipping for first-time purchases.
3. Customer Feedback : Ask for reviews and use them to improve your service.

Remember, it may be slow to start, but with persistence, sales will come. For more tips, check out our complete guide on how to create an e-commerce business from scratch .

Main KPIs to Monitor in E-commerce

Conversion Rate

The conversion rate is like a thermometer that measures the efficiency of your e-commerce. Basically, it shows the percentage of visitors who actually become customers. Imagine you have 100 visitors and 5 buy something; your conversion rate is 5%. If this rate is low, it's time to investigate and perhaps adjust your sales strategy.

Average Ticket

The average ticket gives you an idea of ​​how much, on average, each customer is spending in your store. Just take the total revenue and divide it by the number of sales. If the amount is lower than you would like, it may be time to think about promotions or combos that encourage the customer to spend more.

Return on Investment (ROI)

ROI is the metric that everyone wants to see rising. It measures how much you earn for every dollar invested. If you spent R$100 on advertising and that generated R$300 in sales, your ROI is 200%. It is an essential metric to know if your strategies are on the right track.

Monitoring these KPIs is like having a treasure map to the success of your e-commerce business. They help you adjust your course and ensure that your business is growing in a healthy way.

Calculation Example

KPI	Formula	Example
Conversion Rate	(Number of Sales / Number of Visits) * 100	5%
Average Ticket	Turnover / Number of Sales	R$200.00
ROI	(Billing - Costs) / Costs	200%

Keeping an eye on these indicators may seem boring, but it is essential to understand what is going on in your e-commerce. If one of them is not working, it is time to rethink your strategies. And oh, KPIs are super important for setting goals and monitoring performance effectively. Let's monitor all of this and make your business boom!

Conclusion

So, did you understand a little more about e-commerce? This digital world is increasingly present in our lives, and there is no way to escape it. Whether you are buying or selling, the important thing is to know how it works and take advantage of the opportunities it offers. With a little planning and dedication, you can turn an idea into a successful business. So, let's get down to work and explore everything e-commerce has to offer. Who knows, maybe you will become the next big name in online commerce? 😉

Frequently Asked Questions

What is e-commerce?

E-commerce is a type of business where transactions are made over the internet. This includes buying and selling products and services online.

How does e-commerce work?

The customer accesses an online store, chooses products, adds them to the cart, fills in payment details and address, and completes the purchase. The product is then sent to the indicated address.

What are the types of e-commerce?

There are several types, such as B2B (business to business), B2C (business to consumer), C2C (consumer to consumer), and D2C (direct from manufacturer to consumer).

Is it necessary to have an e-commerce platform?

Yes, an e-commerce platform helps you organize and manage online sales in a professional way, although it is possible to start selling on social networks.

What are the advantages of e-commerce?

E-commerce offers global reach, cost reduction and flexible hours, allowing sales to occur at any time.

How did e-commerce come about?

E-commerce began to develop in the 1990s with the advancement of the internet and the creation of secure systems for online transactions.

What are the main challenges of e-commerce?

Some challenges include cart abandonment, data security, and providing good customer service.

How to choose the ideal e-commerce platform?

It is important to consider the features, available integrations and cost-benefit when choosing an e-commerce platform.