*This is more of an architecture level question.
I am new to DNN development , we are trying to build an e-commerce site which will showcase all the products which will be tied to our current order database.
Am I wrong in assuming that any custom development that I do via DNN would be in MODULE form ? I created few custom module (i.e. list of products) which would tie to database in code behind and display data from SQL. This seems to be very heavy approach if I have to make modules for every functionality.
Is there a better way here ? Can I (is it recommended) to directly change the DNN pages to accommodate this type of functionality ?
Is it possible to do development without moduels ? i.e. provide code right in the html text editor or something. If i create new module from DNN template then it adds many files ....that is why it feels heavy

It is strongly recommended that you not directly change DNN. This will make it very difficult to apply upgrades to DNN and cause headaches for whoever maintains the site after you.
The main extensibility point in DotNetNuke is the module. The module is just some executable controls that you can place on any page. It shouldn't be significantly heavier than any other approach you would take. Whatever you want to do in DNN itself, you should be able to do in a module, and just place the module on a page.
You could also potentially have some of your functionality in the skin, rather than the module, if that is easier or makes more sense. Generally, the skin has functionality that is shared across most pages in the site, and module are used to place specific content on specific pages.
If you're looking for something simpler, you might try using the core reports module, which will allow you to style the results of a query from the database (if you don't need the interactivity that a module would provide).
Your good options are as follows
Build a separate Web Application for your e-commerce, but provide heavy inter-linking with the DNN site. With this method, DNN would be used for content.
Purchase a third party e-commerce module-set like SmithCart and try to configure it to meet your business model
Build custom DNN modules
Our current project utilizes option #3. We have 25,000 products and about 3,000 product listings with heavy customer-customization functionality.
While it might seem heavy, as in, a distinct module project per section of e-commerce, it doesn't have to be too complex.
Example Modules:
You can use URLRewrites to map all your products to the same DNN Page/Module.
As a result, we really have very few non-content DNN pages.
In summary, it might feel a bit heavy, but with the proper design it can go rather smoothly in comparison to a separate web app.
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