What Is E-commerce? A Guide to Starting from Scratch

Last updated: November 2026. This guide answers "what is e-commerce?", "how do you start e-commerce from scratch?" and "what do you need for an online business?" in one place. It merges the earlier e-commerce articles on the DevCommerce blog and brings them up to date for 2026.

What is e-commerce?

E-commerce (electronic commerce) is the buying and selling of goods and services over the internet. A buyer chooses a product on a website or marketplace, pays online, and the product is delivered to their address or provided digitally. Ordering, payment and customer communication happen fully or partly online, without a physical shop visit.

In Azerbaijan the legal basis of this field is the Law on Electronic Commerce, No. 908-IIQ of 10 May 2005. So although e-commerce is "virtual", it is conducted within the law just like any other trade.

How is e-commerce different from traditional retail?

The main difference is where the sale happens: in traditional retail the buyer comes to the shop, while in e-commerce the shop comes to the buyer's phone. That cuts rent and staffing costs, but it brings new costs and skills: delivery, online payments, returns and digital marketing all become your job.

Criterion	Physical shop	E-commerce
Point of sale	A physical location	Website, marketplace, social media
Audience	The shop's local area	The whole country or the world
Opening hours	Limited	Orders around the clock
Main costs	Rent, utilities, staff	Platform fees, ads, shipping
Customer contact	Face to face	Messages, reviews and ratings
Measurement	Difficult	Every click and sale is tracked

What types of e-commerce are there?

E-commerce is divided by who sells to whom: business to consumer (B2C), business to business (B2B), consumer to consumer (C2C) and direct to consumer (D2C), where a brand sells to buyers without intermediaries. Most new sellers start with B2C, or with C2C/B2C selling on a marketplace.

Model	Who sells to whom	Example
B2C	Business to consumer	Buying clothes or electronics from an online store
B2B	Business to business	Orders on wholesale platforms
C2C	Individual to individual	Classified sites, selling used items on eBay
D2C	Brand directly to buyer	A brand store built on Shopify

How big is the e-commerce market?

According to the UN Conference on Trade and Development (UNCTAD), business e-commerce sales across 43 economies reached almost 27 trillion dollars in 2022. In Azerbaijan there were 9.23 million internet users at the start of 2025, or 89 percent of the population. Both the global and the local audience are online.

Sources: UNCTAD, "Business e-commerce sales and the role of online platforms" (2024) and DataReportal, "Digital 2025: Azerbaijan". Note that UNCTAD itself calls the estimate relatively uncertain because data on digitally ordered trade is limited.

Which online business model should you choose?

A seller starting from Azerbaijan has five main routes: dropshipping, selling on eBay, Amazon FBA, a branded Shopify store, and local selling through social media or a website. They differ in start-up budget, risk and the skills required. Your budget and available time should drive the choice, not hype.

Model	How it works	Budget	Main challenge
Dropshipping	No stock; the supplier ships directly	Low to medium	Margin and supplier control
Selling on eBay	Listings on a marketplace with ready buyers	Low	Platform rules and limits
Amazon FBA	Goods go to Amazon's warehouse, Amazon delivers	High	Inventory risk, registration requirements
Branded Shopify store	Your own site and brand	Medium to high	Traffic and ad costs
Local online selling	Instagram, a website or local platforms	Varies	Delivery and local competition

We cover dropshipping in our dropshipping guide and the Amazon model in our Amazon FBA guide.

Should you sell on a marketplace or open your own website?

For a beginner a marketplace is usually the faster route: buyers are already there and payments are built in. Your own site is more valuable for a long-term brand and customer base, but you have to create the traffic yourself. Many sellers learn on a marketplace, then move to their own store or run both in parallel.

• Marketplace (eBay, Amazon): quick start and a ready audience, but fees and strict rules.
• Own store (Shopify): you own the brand, pricing and customer data, but you need an ad budget and marketing skills.

What mistakes do beginners make most often?

The most common mistakes are picking a product without checking the market, not counting all costs, not reading platform rules and expecting big profits in the first month. Every one of them can be avoided with a little planning before the first sale, which is far cheaper than learning by losing money.

• Choosing a product because "everyone sells it" without measuring competition.
• Leaving fees, shipping and returns out of the margin.
• Checking whether a payment service works in your country only afterwards.
• Opening many channels at once and giving none of them enough time.
• Paying for "ready-made business" packages that guarantee income.

How do you start e-commerce from scratch?

Seven steps are enough: choose a model, research the market, set up a sales channel, sort out payments, test your first products, measure the results and only then scale. The biggest mistake is skipping these steps and going straight to spending money on ads before you know your numbers.

1. Choose a model. Pick the one from the table that fits your budget and time.
2. Research the market. Check who you will sell to, competitor prices and real demand.
3. Set up a sales channel. Open a marketplace account or build your own store.
4. Sort out payments. Know in advance how you will receive and withdraw money: payment services that work in Azerbaijan.
5. Start with a small test. A few products, a clear target audience and a limited budget.
6. Measure the numbers. Record the cost, margin and return rate of every sale.
7. Scale. Expand what works and stop what does not, in time.

Can you build an online business without capital?

Starting completely free is almost impossible, but starting with little capital is realistic. With dropshipping and marketplace selling you do not put money into stock, yet you still have platform fees, working capital, advertising and education costs. It is more honest to read "without capital" as "without inventory".

We work out realistic budgets by channel in "How much money do you need to start e-commerce?".

What about the legal and tax side of e-commerce in Azerbaijan?

Income from online sales is taxable income, so keep records from your very first sale. The field is governed by the Law on Electronic Commerce and the Tax Code. Sellers on foreign platforms also face country restrictions of payment services and questions about withdrawing foreign currency.

• Tax obligations and declarations in detail: e-commerce and tax in Azerbaijan.
• For Shopify store owners: Azerbaijan is not among the countries supported by Shopify Payments, so you need alternative payment providers (local options).
• Whether you need a company abroad to sell on Amazon is covered in this article.

What skills does e-commerce require?

The key skills are product research, presenting products with good copy and images, pricing and margin calculation, digital advertising and customer service. Programming is usually not required, because platforms provide ready-made tools. The hardest part is the habit of working patiently and consistently for months.

• Product research: checking demand with numbers.
• Presentation: titles, descriptions, photos and keywords.
• Finance: net margin including fees, shipping and returns.
• Marketing: marketplace search, or Facebook and TikTok ads.
• Customer service: quick replies, a clear returns policy, dispute handling.
• English: at least a basic level for foreign platforms.

Can you sell to foreign markets from Azerbaijan?

Yes. Through platforms such as eBay, Amazon and Shopify you can sell from Azerbaijan to buyers in the US, Europe and other markets. You need a platform that supports your country, a working way to receive and withdraw money, a sound shipping solution and income declared in line with local law.

The upside of foreign markets is the number of buyers and, in some categories, higher prices. The downside is competition, customer service in English and strict platform rules. We show account setup step by step in our eBay seller account and selling on Amazon articles.

Why does it make sense to start e-commerce now?

Because buyers are already online, platforms have made it easier than before to reach global markets from Azerbaijan, and you do not need a physical shop to begin. But competition has grown along with opportunity, so learning first and starting with a plan matters. We look at reasons and risks in a separate article.

Read more: 5 reasons to start e-commerce and Making money online in 2026: is e-commerce a real path?

Where can you learn e-commerce?

You can learn the basics from free sources, but a structured course saves time on account setup, payments and steps specific to Azerbaijan. First decide which channel you will sell on, then train for that channel. If you need one-to-one guidance and answers to your own questions, look at the mentoring format.

• The e-commerce course page presents all tracks in one place.
• eBay Dropshipping: 33 video lessons, from account opening to dispute handling.
• Shopify Dropshipping: 11 modules, 56 video lessons.
• E-commerce mentorship: one-to-one format.
• All courses: courses page.

Frequently asked questions

Are e-commerce and online business the same thing?

Not exactly. E-commerce is selling goods and services over the internet. Online business is a wider term that also covers freelancing, content creation and online teaching. All e-commerce is online business, but not every online business is e-commerce.

Do I need a website to start e-commerce?

Not necessarily. On marketplaces such as eBay or Amazon you can sell without your own site, because the platform provides the store page. When you want to build your own brand, opening a separate store on a platform like Shopify makes sense.

How long does it take to learn e-commerce from scratch?

You can learn the basic concepts in a few weeks, but reaching your first steady sales usually takes longer and depends on your time, chosen channel and budget. Be careful with offers that promise an exact timeline.

Is income from online sales taxable?

Yes, income from online sales is taxable and must be declared in line with the law. Check which regime applies to you on the official resources of the State Tax Service or with a tax adviser.

Do I need English for e-commerce?

Not for selling on the local market. But for eBay, Amazon or a Shopify store aimed at foreign buyers, you need at least basic English to write listings, message customers and read platform rules.