Ecommerce refers to buying and selling goods or services through the internet, from the moment a customer browses a product online to the final payment and delivery confirmation. The term covers everything from a small Etsy shop selling handmade candles to Amazon processing millions of orders daily. If money changes hands digitally and a product or service moves from seller to buyer, that transaction falls under the ecommerce umbrella.
Global online sales reached $6.09 trillion in 2024, and that figure continues climbing. For context, ecommerce now accounts for roughly 20% of all retail purchases worldwide. The shift from high street to homepage has been gradual but relentless.
Types of Ecommerce Business Models
Not all online stores operate the same way. The four primary models define who sells to whom.
Business-to-Consumer (B2C) represents the most familiar format. When you order trainers from ASOS or groceries from Tesco online, you’re participating in B2C ecommerce. A business sells directly to individual shoppers.
Business-to-Business (B2B) involves companies selling to other companies. A wholesaler supplying products to retailers through an online portal operates in this space. These transactions typically involve larger order values and longer sales cycles than consumer purchases.
Consumer-to-Consumer (C2C) platforms connect individual sellers with individual buyers. eBay pioneered this model, and marketplaces like Vinted and Depop have expanded it into specific niches. The platform handles the transaction while users manage the actual selling.
Consumer-to-Business (C2B) flips the traditional model. Freelancers offering services through platforms like Fiverr or photographers licensing images to corporations operate under this structure.
Why Ecommerce Has Grown So Rapidly
Several forces have pushed online retail from novelty to necessity over the past two decades.
Convenience sits at the heart of the shift. Shopping at 11pm in your pyjamas removes friction that high street stores cannot eliminate. Product comparison happens in seconds rather than hours spent walking between shops. Delivery windows have shrunk from weeks to same-day in many categories.
The smartphone revolution accelerated adoption dramatically. Mobile commerce sales reached $2.07 trillion globally in 2024, with consumers increasingly comfortable completing purchases on their phones. The device in your pocket has become a shopping centre that never closes.
Trust infrastructure has matured considerably. Secure payment gateways, buyer protection policies, and customer review systems have addressed early concerns about handing card details to websites. Most shoppers now feel as confident buying online as they do in physical stores.
The UK Ecommerce Market
The United Kingdom ranks as the third largest ecommerce market globally, trailing only China and the United States. British consumers have embraced online shopping more enthusiastically than most European counterparts.
Online shopping accounts for approximately 30.4% of total UK retail spend, one of the highest penetration rates worldwide. The market generated an estimated $234 billion in 2024, with continued growth expected through the decade.
Major players like Amazon, Tesco, and Argos dominate transaction volumes, but thousands of smaller retailers carve out successful niches. The barriers to launching an online store have dropped substantially, with platforms like Shopify and WooCommerce enabling anyone to start selling within hours rather than months.
Building a Successful Ecommerce Presence
Simply launching a website rarely translates into sales. The difference between thriving online stores and abandoned shopping carts lies in execution across several key areas.
Product visibility determines whether potential customers find you at all. Search engines drive substantial traffic to ecommerce sites, making search optimisation essential for long-term growth. Our ecommerce SEO strategy guide breaks down the fundamentals for stores of any size.
User experience shapes conversion rates once visitors arrive. Navigation should feel intuitive, product information must answer common questions, and checkout processes need to eliminate unnecessary steps. Sites that frustrate shoppers lose sales to competitors who make purchasing effortless.
Trust signals influence buying decisions significantly. Clear return policies, visible contact information, genuine customer reviews, and recognised payment options all contribute to the confidence shoppers need before entering card details.
Getting Started With Ecommerce
The path from idea to functioning online store has never been more accessible. Platform choices range from hosted solutions requiring no technical knowledge to custom-built systems offering complete control.
Start with your products and target customers rather than technology decisions. Understanding who you’re selling to, shapes every subsequent choice, from platform selection to marketing approach. The ecommerce businesses that struggle often begin with features rather than fundamentals.
For retailers serious about building visibility in search results, consider an ecommerce SEO audit service to identify opportunities specific to your store and market.
