Ecommerce explanation for a complete newbie

Hello, so a friend that I have is interested in starting out in ecommerce, he has a problem about how can we be sure that the seller has secured the money, and the customer has received their product? He's been talking about having a separate company where the customer's money goes into the company, then the seller's product goes to the company and then the money is transferred to the seller and the product to the customer, is this how it works? Or is there another method? A bit of help would be very much appreciated thanks 🙂

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