A domain name registrar is a company that manages the reservation of Internet domain names, i.e. that company helps you buy and register a domain name.
Why would I want to have a domain name?
If you want to have a website that people can visit online, you’ll need a place on the Internet where your visitors could go and view it. For instance, if you have an e-commerce website where you sell your hand-made products, you will need to help your visitors to find it. With a domain name, your users will be able to type into the search engine your domain name (e.g. awesomewebsite.com) and see the products you have on sale.