Hey, read an wikipedia article to precise your question a liitle bit, because it's too much to write about "how it works"... There are too many techniques (however, they are easy to study) in it, so you should hard-working.
in fact ,it is very simple.but It is related to the safety of transactions, goods circulation, prestige, quality of the commodity etc, become very complex
The ecommerce works like an online shopping store which has products that people can buy using various payment facilities like credit card, paypal, moneybookers etc. Depending upon whether the products will be physically shipped or handed over online, you can sell products to the clients. Its like a normal super store from where you buy groceries except that in the case of ecommerce, that store is online. Hope I've answered your question.
You build an online experience that instills trust in potential customers and makes it easy to find products they are interested in. Once you have helped them find the product you carefully guide them through a checkout process quickly and instilling more confidence in your company. Then you fulfill orders quickly and without flaw to generate the reputation required to run a successful online store. Once you have this down move on to generating traffic and marketing, but not before.
Ecommerce can be like going shopping in a grocery store or mall (multiple-vendors); customers pick and choose the merchandise they want. Some customers will entirely abandon the merchandise they've selected in their shopping cart, others (including your competitors) will just browse - sort of like window shoppers at mall and or the last of them (which is the customer you really want) will complete their purchases and go about their way. You as the owner of the ecommerce shop or store -whatever you wish to call it-have to be flexible or allow flexibility with customer returns under certain circumstances. You need to be able to keep your cool when dealing with customers and other stressful situations i.e. fraudulent charges. You can avoid the lateral as much as possible by verifying that the person making the purchase with credit card is in fact said person otherwise cancel their order and save yourself from pounding your head onto your desk at home or in the office. You will need to clarify your site's Terms and Conditions, Privacy Policy and anything else applicable to what you're selling online whether it's a physical product or non-tangible product (i.e. downloadable software or service). Lastly you'll want to protect your IP (e.g. trademark, brand, etc) from competitor duplication and misuse by investing in IP protection by hiring legal team if you plan on going global with your business or just operating locally in your domesticity.
The best place to find out about e commerce, how to do it and whether or not it is right for you is at storecoach.com. It is a totally FREE online course that tells you everything you would ever need to know, including how to find the products to sell, which keywords to target and how to get your website ranked high in Google. The guys who made the course are experts in the field and have helped me get to the point where I make a full time living from my websites. And, in case you are wondering, the link I provided is not any kind of affiliate link. What would be the point in having affiliates for a free product? - LOL
Electronic commerce (e-commerce) is to buy/sell products/services over electronic systems - example: over the internet (Website) In my opinion, to run a e-commerce website the business owner should have: 1) Merchant account with a bank 2) A "payment gateway" to process payments 3) Secure shopping cart (This is where the importance of a secure website comes)
you can sell products to the clients. Its like a normal super store from where you buy groceries except that in the case of ecommerce, that store is online. Hope I've answered your question.
The difference is that good & services in e commerce are bought & sold over the internet using a credit card.