HomeLearning CenterWhat is E-Commerce? Types, Examples & How It Works in India
Blog Banner

Author

LoansJagat Team

Read Time

6 Min

11 Aug 2025

What is E-Commerce? Types, Examples & How It Works in India

blog

E-commerce involves purchasing and selling products on the internet. It allows individuals to shop online at home.

 

Example:

Kapil desires to purchase new shoes, yet he is unable to go to the market. He orders them using his phone in an online store. His shoes take 2 days to be delivered to his doorstep.

Here’s a simple table showing how e-commerce helps Kapil:
 

Kapil’s Need

Traditional Way

E-Commerce Way

Buy shoes

Go to market (time-consuming)

Order online (hassle-free)

Payment

Cash only/UPI

Card/UPI/Credit Card/Net banking

Delivery

Carry himself

Home delivery

 

The e-commerce eases the life of people such as Kapil.

 

This blog helps you to understand e-commerce, types, and real-life examples, it's online shopping without having to leave your house.

What is E-Commerce?
 

E-commerce refers to the process of purchasing and selling on the internet. You do not go to a store; you order anything you want using the internet, and it is delivered to your doorstep.


Read More – What is a Payment Gateway? Meaning, Types & How It Works in E-commerce
 

Example:

 

Kapil needs a school bag, yet he has no time to rush to the market. He then unlocks his phone and orders a bag after opening an e-commerce application, pays using UPI and takes it the next day.

Why is E-Commerce useful?
 

  • Saves time: No need to travel to stores.
     
  • More options: Choose from many brands and prices.
     
  • Easy payments: Pay with cards, UPI, or cash on delivery.
     
  • Home delivery: Items come to your doorstep.

Here’s how e-commerce helps Kapil compared to traditional shopping:
 

Kapil’s Task

Old Way

E-Commerce Way

Buying a bag

Visit multiple shops

Browse online in minutes

Payment

Cash only

UPI/Card/Cash on delivery

Delivery

Carry it back home

Delivered to his house

Time spent

Half a day

10 minutes on the phone

 

Online shopping is also convenient, as it is quick and simple for those such as Kapil, since he can shop in no time.

Types of E-Commerce
 

E-commerce is not a single kind; rather, it comes in various forms according to the purchaser and seller. It links companies, people and even governments to online connectivity.

Understanding Type of E-Commerce (B2C, C2C, B2B, C2B)

 

Depending on who is buying and selling, e-commerce functions differently. This is a simple breakdown:

 

  1. B2C (Business to Customer): A business sells directly to you. 
  • Example: Amazon or Flipkart selling products to shoppers. 
  • Why does it matter? It’s how most online shopping works: fast and easy for customers.

 

  1. C2C (Customer to Customer): People sell to each other. 
  • Example: Selling old clothes on OLX.
  • Why does it matter? It helps people buy/sell used things cheaply.

 

  1. B2B (Business to Business): Companies sell to other companies.
  • Example: A factory selling materials to a shoe brand.
  • Why does it matter? Keeps businesses running smoothly.

 

  1. C2B (Customer to Business): You sell to companies.
  • Example: A photographer selling stock photos to a website. 
  • Why does it matter? Let individuals earn from their skills.

 

Example

Kapil not only purchases goods online, but he also sells handmade key chains. He orders from large websites and small sellers, and he even does business with his school.

Here are the main types of e-commerce with Kapil’s examples:
 

Type

Who is Involved?

Kapil’s Example

B2C (Business to Customer)

The company sells to people

Kapil buys shoes from an online store.

C2C (Customer to Customer)

Person sells to person

Kapil sells keychains on Etsy or OLX.

B2B (Business to Business)

The company sells to the company

Kapil’s school buys laptops from Amazon.

C2B (Customer to Business)

Person sells to the company

Kapil designs a logo for a local shop.

 

E-commerce has a lot of operations that enable individuals such as Kapil to buy, sell, and develop.

How E-Commerce Works in India?

E-commerce in India involves purchasing or selling goods online by using applications and websites. It collaborates with the internet, payments and the delivery system so that shopping becomes convenient.

 

Example

Kapil purchases a cricket bat on Flipkart. He pays through PhonePe, and the bat is delivered in 3 days through Delhivery.

Key Steps in Indian E-Commerce:
 

  • Search: Kapil browses products on apps like Amazon or Meesho.
     
  • Order: He selects his bat and checks out.
     
  • Payment: Pays via UPI (PhonePe/Google Pay), card, or cash on delivery.
     
  • Delivery: Courier partners like Ekart or Bluedart bring it to his home.
     
  • Return: If the bat is damaged, Kapil can return it easily.

Here’s how e-commerce works in India compared to traditional shopping:

 

Step

Traditional Shopping

E-Commerce in India

Finding Products

Visit multiple shops

Search on apps/websites (Flipkart, Amazon, Nykaa)

Payment

Cash only

UPI, Cards, EMI, or Cash on Delivery

Delivery

Carry items home yourself

Delivered by Bluedart, DTDC, etc. (Delivery company or partner)

Returns

Go back to the shop

Pickup at home or drop off at the nearest hub

 

The e-commerce in India is hassle-free, reliable and quick, followed by millions of Indians such as Kapil.

Popular E-Commerce Examples in India
 

E-commerce pages are websites and applications where individuals make purchases and sales. They make shopping convenient, quick and available to all.

 

Example

Kapil's family uses various e-commerce sites to serve their purposes, where his father purchases instruments using Amazon, his mom orders food supplies using BigBasket, his sister browses via Myntra and Kapil orders books using Flipkart.

Why Are These Platforms Popular?
 

  • Wide variety: Everything from groceries to electronics is available.
     
  • Good discounts: Regular sales and offers.
     
  • Easy returns: Most allow 7-10 day return policies.
     
  • Fast delivery: Some deliver in just 1-2 days.

Here are India's top e-commerce platforms:
 

Platform

What It Sells

Kapil's Family Usage

Special Feature

Amazon

Everything (electronics, clothes, home items)

Father buys tools

Prime fast delivery

 

Flipkart

Mobiles, books, appliances

Kapil buys books

Big Billion Days sale

Myntra

Fashion and lifestyle

Sister buys clothes

Try & Buy option

BigBasket

Groceries

Mother orders food

Morning delivery available

JioMart

Daily household needs

Neighbours order regularly

WhatsApp ordering

 

Such platforms have transformed the day-to-day shopping economy of Indians, such as the Kapil family.

Challenges of E-Commerce in India

 

E-commerce has problems as well as promising opportunities in the future. It is expanding rapidly, but needs to address certain issues to be able to accommodate customer needs better.


Also Read  - Paytm Receives RBI’s In-Principle Approval for Online Payment Aggregator Licence
 

Example:

 

Kapil also has a few problems - Kapil came late to order the shoes he ordered last month, and his mother is concerned about the safety of online payments.

Challenges in E-Commerce (With Real Examples)

 

  • Fake Reviews: Some sellers post fake 5-star ratings. Example: Amazon removed 20,000 fake reviews in 2023.
     
  • Delivery Delays: Orders get stuck. Example: During festivals, 30% of deliveries arrive late.
     
  • Returns & Refunds: Wrong items sent, refunds take weeks. Example: 25% of fashion orders are returned.

 

Kapil is hoping that someday, E-commerce gets more stable and he can then shop with his entire family without any fears. Firms are striving to facilitate it easily for all Indians.

Conclusion

 

E-commerce has permanently changed the way we shop. With just a few clicks, we can purchase anything without ever leaving the house, including groceries and electronics. 

 

While there are some problems like late deliveries or fake reviews, the benefits are huge, which include things like phoney reviews and delayed deliveries. 

 

It offers more options, saves time, and often has lower prices than nearby stores. Currently, individuals can easily sell their used goods, and small businesses can reach customers anywhere. Online shopping will only become safer and faster as technology advances. E-commerce is here to stay and isn't just convenient, it's making everyone's life easier!

FAQs

 

How do I track my order?

After ordering, you’ll get a tracking link via email/SMS. Click it to see where your package is. If stuck, contact customer support.

 

What if I get the wrong item?

Don’t worry! Contact the seller/app support, share photos, and they’ll arrange a return/replacement. Most companies fix this quickly.

 

How long does delivery take?

Usually 2-7 days, but it depends on your location and seller. Check the product page for the estimated delivery time before ordering.

 

Are there extra charges (hidden costs)?

The final price at checkout includes all charges (taxes, shipping). If you see extra fees later, complain to customer care.

 

Can I cancel my order?

Yes! If the order isn’t shipped yet, you can cancel it from "My Orders." After shipping, you’ll need to return it.

 

Is online payment safe?

Yes! Use trusted apps like UPI, cards, or COD (Cash on Delivery). Never share OTPs or passwords with anyone.

 

What’s the return policy?

Most sites allow returns within 7-30 days if the item is unused. Check the product page for exact rules.

 

Why is my refund taking so long?

Refunds take 3-10 business days after the return is approved. Delays can happen due to bank processes, but stay patient!

 

How do I contact customer support?

Look for "Help" or "Contact Us" on the app/website. Use chat, email, or call options for quick help.

 

Can I order from another country?

Some sites allow international shipping, but delivery times and fees will be higher. Check before ordering.

 

Apply for Loans Fast and Hassle-Free

About the Author

logo

LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?

coin

Quick Apply Loan

tick
100% Digital Process
tick
Loan Upto 50 Lacs
tick
Best Deal Guaranteed

Subscribe Now