One of the biggest misconceptions with business models in e-commerce is that most people view all e-commerce businesses as strictly Business to Consumer (B2C).
However, the reality is that there are different types of ecommerce models, and all are thriving. According to estimates by Statista, e-commerce sales will jump to $6.388 billion per year by 2024.
If you are looking for useful information on the fundamentals of innovative e-commerce business models, you've come to the right place.
In this blog, we will decode everything you need to know about the types and benefits of e-commerce models, along with real-life examples for some serious inspiration. Let's get going.
The first thing you need to make a note of is that every e-commerce business model differs from the other based on the type of online transaction that occurs between the buyer and the seller online.
Focuses on: Offering products/services from one business to another.
Focuses on: Providing products/services from the business owner directly to the end customer.
Focuses on: Allowing customers to buy, trade, or sell products/services in exchange for a small commission (transaction or listing fees), which is paid to the website.
Focuses on: Allowing D2C businesses to sell their products directly to end customers without the help of third-party online retailers.
Focuses on: Enabling consumers to sell goods/services to businesses; the consumer engages in a sole proprietorship serving a larger business.
Zeroing in on the right business model fit for your e-commerce business can be tricky. If you want to leverage the 360-degree advantages of the various models of e-commerce at play, you need to keep the following tips in mind:
You need to know exactly the market you wish to sell to. You also need to understand your ideal customer's likes, pain points, challenges, aspirations, etc. This is where an in-depth customer profile can come in handy.
Are you selling physical products? Or are you selling digital goods (such as eBooks, websites, etc.) or services?
What are your brand's existing strengths and USPs? Also, think about your brand's limitations and weaknesses.
For instance, if you are a distributor of other people's products, then you must invest in direct marketing strategies to boost sales.
How will you convince consumers to opt for your product/service? Are you competing on price, quality, service, etc.?
The recipe for success for any e-commerce business lies in using the right knowledge to build your e-commerce brand right.
Add your intuition, market knowledge, and strategic business plan to the mix, and you've got a winning e-commerce model at hand.
So, take a cue from the tips outlined above, familiarize yourself with the e-commerce fundamentals, select the right e-commerce platform (like the Aasaan app) that suits your specific needs, and kick-start your e-commerce journey on the right (and productive) note!