An e-commerce business is a company that generates revenue from selling products or services online. E-commerce involves the buying and selling of goods and services over an electronic network, primarily the internet. It draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. E-commerce transactions typically include the purchase of products or services, such as books from Amazon or music downloads from the iTunes Store. There are three areas of e-commerce: online retailing, electronic markets, and online auctions. E-commerce is supported by electronic business.

Two common e-commerce business models are business-to-business (B2B) and business-to-consumer (B2C). B2B sellers focus on selling products that other businesses may need, while B2C focuses on selling products to shoppers or the end customer. Examples of B2B e-commerce include wholesale suppliers, office supply stores, industrial equipment manufacturers, IT services providers, software companies, and business consultants. Examples of B2C e-commerce include clothing retailers, electronics stores, home goods stores, grocery stores, and health and beauty retailers.

Starting an e-commerce business is similar to starting any other company. It involves creating a business plan, getting licenses and permits, setting up dedicated finances, choosing an e-commerce website builder, sourcing products, and marketing to online customers.