Checked exceptions must be handled or declared; unchecked exceptions don't require handling.
Checked exceptions, like IOException, must be declared in a method's 'throws' clause or handled within the method. Unchecked exceptions, such as NullPointerException, are derived from RuntimeException and don't require explicit handling, allowing for cleaner code but potentially more runtime errors. In an e-commerce application, handling checked exceptions can ensure reliable data saving to a database.
Additional Notes
Why does the difference between checked and unchecked exceptions matter in practice?