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Business

Online Shop / E-Commerce

Electronic commerce over the internet, typically via an online shop that sells products or services digitally.

E-commerce is no longer a trend but a core sales channel for companies of all sizes. Whether B2C shop, B2B marketplace or D2C: digital retail keeps growing and lets businesses reach customers globally. Choosing the right platform and strategy is decisive for success.

What is Online Shop / E-Commerce?

E-commerce (Electronic Commerce) covers all electronic business over the internet: buying and selling goods and services, digital payment, logistics and customer service. An online shop is the technical platform through which e-commerce is conducted. Types include B2C (e.g. Zalando), B2B (e.g. Alibaba), C2C (e.g. classifieds) and D2C (e.g. Nike.com). Technologically you have ready-made platforms (Shopify, WooCommerce), enterprise solutions (Shopware, Magento) and headless commerce.

How does Online Shop / E-Commerce work?

An online shop has several core parts: product catalogue with images, descriptions and prices; cart and checkout with payment (PayPal, Stripe, Klarna); order and inventory management; shipping and tracking; customer service and returns. Modern shops use headless commerce: frontend (React, Next.js) is decoupled from backend (Shopify, Commercetools) for maximum flexibility and performance.

Practical Examples

1

Fashion retailer on Shopify: A D2C brand runs its shop on Shopify, integrates Instagram Shopping and uses Klarna for instalments.

2

B2B wholesaler on Shopware: Customer-specific prices, volume discounts and order approval for business customers with ERP integration.

3

Niche shop with WooCommerce: A craft business sells specialist tools via a WordPress-based shop with local SEO.

4

Headless commerce: A sports retailer uses Commercetools as backend and a fast Next.js PWA as storefront.

5

Marketplace: An industry portal connects suppliers and buyers and earns from commissions.

Typical Use Cases

B2C retail: Selling to end customers via your own shop

B2B: Digitising order processes for business customers with custom terms

D2C brands: Direct sales for higher margins and closer customer contact

Multi-channel: Linking shop, marketplaces (Amazon, eBay) and physical stores

Subscription commerce: Recurring delivery models (e.g. food, cosmetics)

Advantages and Disadvantages

Advantages

  • Global reach: Customers worldwide without physical presence
  • 24/7 availability: Shop is open and taking orders around the clock
  • Scalability: From first sale to millions of orders without proportional staff
  • Data-driven: Rich analytics on behaviour, conversion and revenue
  • Personalisation: Recommendations and offers based on user data

Disadvantages

  • Strong competition: Online market is crowded, especially vs Amazon and big platforms
  • Technical complexity: Running a shop needs know-how in hosting, security, SEO and payments
  • Logistics cost: Shipping, returns and warehousing can weigh on margins
  • Customer expectations: Same-day delivery, free returns and 24/7 support are increasingly expected

Frequently Asked Questions about Online Shop / E-Commerce

Which e-commerce platform is right?

For beginners and small shops, Shopify (simple, hosted) works well. For the German mid-market with custom needs, Shopware is a strong choice. WooCommerce fits WordPress users. For enterprise and headless, Commercetools and Magento are relevant. Choice depends on budget, requirements and technical capability.

What does an online shop cost?

A simple Shopify shop starts from about €30/month plus transaction fees. A custom shop on Shopware or WooCommerce typically costs €10,000–50,000 for build and design. Enterprise with ERP integration starts around €50,000. Add ongoing hosting, marketing and maintenance.

How important is mobile for e-commerce?

Critical. Over 70% of online purchases in Germany start on a mobile device. A responsive shop or PWA is mandatory. Mobile-first design, fast load times and easy mobile checkout (Apple Pay, Google Pay) strongly affect conversion.

Related Terms

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What is E-Commerce? Online Shop Basics & Solutions