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E-commerce refers to selling products and services online, rather than through a physical store location. Online sales continue to grow, as technical innovations make it easier to find and compare products and make purchases over the web. As technology improves, so does the customer experience when buying online. The result? The percentage of retail sales placed online increases each year.

This industry has a different cost structure to a traditional retail or manufacturing company. The good news is that e-commerce firms don’t need physical locations. However, online businesses have other costs that must be managed.

As an example, let’s say you own Treeline Outdoor, an e-commerce company that sells hiking and camping gear. Your buyers shop online and compare prices, and you compete against a number of competitors.