Sub-Domains
Let’s say your domain is domain.com.
You install a E-Commerce and put in a directory called domain.com/commerce/.
You can turn the directory commerce into a sub-domain by adding it as a sub-domain from your Control Panel.
Now you can access your E-Commerce store as either domain.com/commerce OR commerce.domain.com
Related article: How to set up subdomain in cPanel
Parked Domains
You have several domains domain.com, domain.org, domain.biz and domain.net.
domain.com is the domain of your website and you want to add domain.org, domain.biz and domain.net.
You want them both to go to the same place. In other words, when someone types either domain.com, domain.org, domain.biz or domain.net they will go to the same page(s) on your website.
In order to have additional parked domains you need to purchase the additional domain(s).
Add-On Domains
You have two domains domain.com and addondomain.com.
You want the two domains to be totally separate/independent websites.
In order to have additional add-on domains you need to purchase the additional domain(s).
Other than the domains stated above, don not forget about TLD top-level domain also one of the important component for a structure of domain name.
Read more article to learn more about the types of domains as beginner!