What Is E-Commerce? A Beginner’s Guide for 2025

Selling products and services online, reaching customers around the world, and achieving high-volume sales with low costs are now possible. In this Papel Blog article, we answer all your questions, such as what e-commerce is, how to set up an e-commerce website, which business models and payment methods are used, and what the advantages and disadvantages of e-commerce are.

What is e-commerce?

E-commerce, meaning the buying and selling of products and services over the internet, is the digital version of the traditional store experience. Businesses or sellers can reach customers and sell through mobile applications, social media, or websites. E-commerce is not limited to shopping; it represents a broad ecosystem that includes order management, stock tracking, customer service, marketing, and payment infrastructures.
E-commerce business models include different formats such as B2C (Business to Consumer), B2B (Business to Business), and C2C (Consumer to Consumer).

Main e-commerce business models

Choosing the right business model — answering the question “who sells to whom?” — is one of the most critical steps in e-commerce. The selected model directly affects the target audience, sales channel, pricing strategy, marketing approach, and operational process. The most common business models are as follows:

B2C (Business to Consumer) model

In this model, businesses sell directly to individual consumers. The seller is a company, while the buyer is the end user. For example, a clothing brand that sells jeans through its own website is an example of the B2C model.

Because it allows easier access to consumers, shorter sales cycles, and user-focused campaigns, the B2C model offers many advantages. However, it also brings challenges such as high competition, rapidly changing customer expectations, and the potential increase in operational costs.

B2B (Business to Business) model

In the B2B model, sales occur between two businesses. Both the seller and the buyer are companies. For instance, a manufacturer selling its products wholesale to a retailer is an example of the B2B model.

The B2B business model often includes large-volume orders, long-term partnerships, and more stable revenue streams. However, the sales process may take longer, decision-making mechanisms can be more complex, and managing customer relationships may require more resources.

C2C and other business models

The C2C business model — Consumer to Consumer — refers to individuals buying and selling products or services to one another. For example, selling secondhand items on online marketplaces is a typical example of C2C e-commerce.

Payment and logistics processes in e-commerce

The success of an e-commerce business is measured not only by sales but also by how efficiently the post-sales process is managed. Payment methods and delivery management directly affect customer satisfaction and trust in the brand. At this stage, the technologies used — payment infrastructure, virtual POS solutions, shipping integrations, and return policies — form the backbone of digital success.

Virtual POS and online payment solutions

In the world of e-commerce, having secure, fast, and user-friendly payment processes is essential. With this vision, Papel provides advanced virtual POS, payment link, and online payment solutions for businesses and e-commerce platforms. Through Papel’s solutions, businesses can easily accept payments from all major banks and credit cards, manage integrations from a single panel, and benefit from our competitive commission rates.

With this infrastructure, businesses receive payouts much faster, all transactions are carried out with high security standards, and payments can be accepted through multiple channels such as websites, mobile apps, and payment links.

Shipping and delivery management

Once the sales phase is complete, the most critical step is the logistics process. This process, packaging the order, handing it over to the shipping company, tracking it, delivering it to the customer, and handling potential returns directly impacts customer satisfaction. Proper logistics management helps businesses gain a competitive advantage, increase customer loyalty, and reduce returns and complaints.

Advantages of e-commerce

E-commerce offers significant opportunities for businesses in terms of both cost and reach. Some of the main advantages are:

Reaching a wider audience

By removing physical boundaries, e-commerce allows businesses to reach customers anywhere. Stores can stay open 24/7, and sales take place regardless of time or location. This enables even small businesses to grow their brands quickly and access a broader audience.

Low cost and easy start-up

With the elimination of physical store expenses, e-commerce becomes an attractive option for entrepreneurs. Fixed costs such as rent, staff, and decoration are replaced with lower digital infrastructure and marketing costs. This makes the “e-commerce business model” especially accessible for new ventures.

Speed and efficiency

Online stores make it possible to complete the shopping process with just a few clicks. Automated order, inventory, and payment systems save time for both businesses and customers, increasing sales speed and customer satisfaction.

Disadvantages of e-commerce

Although it offers great opportunities, the world of e-commerce also comes with certain challenges and risks that require attention. These can be summarized as follows:

Intense competition

One of the most significant disadvantages of e-commerce is competition. In the digital environment, many sellers offer the same product, creating price pressure. Businesses that want to stand out must establish a strong brand strategy, create original content, and offer a user-centric experience.

Security risks

Cybersecurity is critically important for both users and businesses in online payments. Failure to protect data can lead to a loss of trust and decreased sales. Therefore, secure e-commerce payment methods and strong infrastructure solutions should be used. For example, Papel’s PCI DSS-compliant POS service can be preferred to ensure safe payment collection.

Lack of product experience

Since customers cannot physically touch or try products before purchasing, online shopping sometimes results in higher return rates. For this reason, product photos, descriptions, and user reviews should be detailed enough to replicate the in-store experience.

 

Sources: 1, 2.  

 

This blog post contains general information, not legal, financial, or investment advice. The content is prepared for informational purposes only, and you are advised to seek professional advice for your specific circumstances. The expressions in this article do not carry any binding nature or responsibility and reflect only the author’s evaluation. All your decisions are your responsibility, and Papel Electronic Money and Payment Services Inc. accepts no liability for any consequences arising from them.