Many people (in different texts) use the following famous definition of the determinant of a matrix $A$: \begin{align*} \det(A) = \sum_{\tau \in S_n}\operatorname{sgn}(\tau)\,a_{1,\tau(1)}a_{2,\tau(2)} \ldots a_{n,\tau(n)}, \end{align*} where the sum is over all permutations of $n$ elements over the symmetric group. None of them actually explains how one interprets this definition, so this makes me suspicious and think they don't know it either.
This is what I understand so far:
Definition: A permutation $\tau$ of $n$ elements is a bijective function having the set $ \left\{1, 2, ..., n\right\}$ both as its domain and codomain. The number of permutations of $n$ elements, and hence the cardinality of the set $S_n$ is $n!$
So for example, for every integer $i \in \left\{1, 2, ..., n\right\}$ there exists exactly one integer $j \in \left\{1, 2, ..., n\right\}$ for which $\tau(j) = i$.
Permutations can also be represented in matrices, for example if $\tau(1) = 3, \tau(2) = 1, \tau(3) =4, \tau(4) =5, \tau(5) =2$, then \begin{align*} \tau = \begin{pmatrix} 1 & 2 & 3 & 4 & 5 \\ 3 & 1 & 4 & 5 & 2 \end{pmatrix}. \end{align*} Definition: Let $\tau \in S_n$ be a permutation. Then an inversion pair $(i,j)$ of $\tau$ is a pair of positive integers $i, j \in \left\{1, 2, ..., n\right\}$ for which $i < j$ but $\tau(i) > \tau(j)$.
This determines how many elements are 'out of order'. For example if $\tau = \begin{pmatrix} 1 & 2 & 3 \\ 1 & 3 & 2 \end{pmatrix}$, then $\tau$ has one single inversion pair $(2,3)$, since $\tau(2) = 3 > \tau(3) = 2$.
Definition: A transposition, called $t_{ij}$, is the permutation that interchanges $i$ and $j$ while leaving all other integers fixed in place. The numbers of inversions in a transposition is always odd, because one can compute that the number of inversion pairs in $t_{ij}$ is exactly $2(j-1)-1$.
Definition: Let $\tau \in S_n$ be a permutation. Then the sign of $\tau$, denoted by sign$(\tau)$ is defined by \begin{align*} sign(\tau) = (-1)^{\text{# of inversion pairs in}\ \tau} \end{align*} This is $+1$ if the number of inversions is even, and $-1$ if the number is odd. Every transposition is an odd permutation.
This is all clear to me, but can someone explain to me, in an understandable fashion, how one interprets the definition of the determinant on the basis of all this information? That would be greatly appreciated (not only by me, but I think by many others aswell).
For example: what do I make of the $a_{1,\tau(1)}$ etc. in the definition of the determinant, all the way up to $n$? What do they represent?