Proven E-Commerce Business Models That Work
Whether you’re new to owning an eCommerce store or have owned one for a while, it’s important to take eCommerce business models into consideration. Not only does it keep you on your toes for profitability, but also for product value. Here, we’ll provide you with an overview of e-Commerce business models that work.
This model offers many benefits as it’s not only affordable but also a safe option. With dropshipping, you’ll essentially be working with external wholesale suppliers who will be in charge of directly shipping the products to consumers. With that, you won’t need to worry about managing inventory and storage.
If you’re looking to sell a variety of products or do so in bulk, the wholesale model is a great option for you. With wholesale eCommerce, you’ll essentially be providing customers with several products and purchasing options.
Digital items is a great option if you don’t want to have to think about inventory and warehousing. Examples of digital items include templates, e-books, plugins, photography and more.
With this model, you can sell your products directly to customers and bypass wholesalers, external retailers and more. It’s not only a great way to build loyal customers, but it’s also extremely self-sufficient.
Enjoy making your own items? If so, this model provides you with a handy way to sell the items that you’ve made online. A great thing about this model is that you’re likely to stand out more in the market since you’ve got control over the quality of the goods that you’re selling. With this model, however, you’ll need to prepare yourself for the amount of time that it takes to make these products. On top of that, you’ll also need a decent work and storage space to store all of your items.
Similar to Spotify or Netflix, with a subscription model, your customer will pay a cost to access your product or service at regular intervals. This model is popular as it’s a recurring revenue model that’s also great at building customer relationships.
Finally, if you’ve got manufacturing. This is a viable option if you’ve got resources and financial capabilities. Manufacturing can be tough as you’ll need to have great products right off the bat. There are currently two forms of manufacturing – private and white label.
- With private labels, it consists of the goods being produced by one company, but being sold by another company with different branding.
- With white labels, the model constitutes of a company manufacturing its product and distributing it to several companies under a different logo or brand name.
Getting started with an eCommerce business model
An e-commerce business model is the core framework of your business so you’ll want to take some time to think about which eCommerce business model would suit your needs best. Whether it be manufacturing, a subscription-based model or dropshipping. If you’re not sure, take the time to conduct the necessary research as you wouldn’t want to run into any issues with your e-Commerce business right off the bat.