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Its a compilation of 2 words, namely 'web' and 'sites'.

Web refers to the internet, the so called web in which every computer is connected to each other.

Sites refers to the state of something being somewhere, so there is a location on which something exists.

The combination of the words is made due to the fact that a site that hold information is located on a computer that is in the web. Every computer can run its own site that displays information, etc.

So the term 'Website' refers to the fact that the site (=location) is somewhere on a computer in the web (="internet").

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Q: Why are websites called websites?
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