I'm trying to figure out how they implemented backspace on the paper.
But if you do want to actually erase text, there still is a way - many typewriters had multiple ink ribbons. In addition to black, you might have red for indicating deficits in accounting, or for erasing text you'd have a white ribbon.
So "erasing" on a typewriter is basically just typing the same text over the top again, this time in white so it doesn't show against the paper.
I wish I learned shorthand (such as teeline) while I still had the time/energy to learn it. I'm sure technology like Siri will put an end to that.
The latest technology was a "glue" ribbon that erased the letter by making the ink stick to the glue and pulling it off the paper.