Ecommerce or dynamic website-Which is a Better Cho

I am planning to develop a revenue generating website, but am unable to decide whether I should opt for a dynamic website or an e commerce website. Is there are functional difference between the two or can manage by creating a dynamic website and use it for e commerce also. I would also like to know if it is possible to great a proper payment gateway through dynamic website designing.

I am not sure I understand what you mean by "dynamic".

Most ecommerce websites (i.e. online stores) are dynamic - i.e. are database driven. There are a gazillion shopping cart (dynamic) applications out there so there is no need to recreate the wheel.

I specialize in using Miva Merchant as an online catalog and shopping cart (it is hugely extensible and customizable as well as highly secure and fast) but there are many other good carts out there.

What you choose depends on your requirements but the top end shopping cart systems such as Miva Merchant provide lots of database capabilities in addition to shopping cart capabilities.