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Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.
Whether you're buying in a store or buying online, everything you do is geared around a transaction: the basic exchange of money for goods or services. In a real-world store, you simply take your new jeans to the checkout, hand over some cash, and leave the store with your purchase in a bag that's a transaction.
It works in a similar way if you're buying online, but there's one important difference: you never actually get to handle (or even touch) the goods until they arrive at your home sometime later.