I want to know how e-commerce owners connect the producers with the buyers.

I want to know how e-commerce is different from physical retail stores. Let’s take a conspicuous example: the peasants/farmers in my area produce some really good quality agricultural products (like Kiwi, litchi, special type of pulses). They don’t have a good market where they can sell these things, I may buy the product from them and then open up a retail shop and then I would sell it up to market where the products are in demand, yes?

But how would e-commerce help me? If I were to develop an e-commerce firm, do I need to have a godown or not? (Does Amazon or Alibaba have godowns where they keep the products which they had bought from producers?)

I need an explanation of the basic working of e-commerce and especially on the part how it connects the producers and the buyers.

Thank you.

submitted by /u/Lucky-Passage8473
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