Final answer:
An e-commerce firm is a company that sells products or services over the internet, utilizing online platforms and shipping services. It relies on technology, logistics, and efficient supply chain management to operate effectively.
Step-by-step explanation:
An e-commerce firm is a company that conducts business and sells products or services over the internet. It operates by creating an online platform where customers can browse and purchase items or services. The firm typically maintains an inventory in warehouses and utilizes shipping services to deliver the products directly to the customers' doorstep.
An e-commerce firm may also employ various strategies to attract and retain customers, such as offering competitive prices, providing secure payment options, and implementing effective marketing campaigns. For example, Amazon, a well-known e-commerce firm, has been successful by leveraging its production model and cost structure to undercut competitors' prices.
Overall, an e-commerce firm relies on technology, logistics, and efficient supply chain management to operate effectively and meet customer demand in the online marketplace.