With the growth of consumers buying online, more eCommerce websites are being created. If you’re going to establish your eCommerce business, here are some modules and the way of making money for your reference.
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What are the different types of eCommerce business models?
Business-to-business (B2B)
A business-to-business (B2B) model is a company that sells its products or services directly to other businesses. It allows businesses to connect with other businesses in order to make deals and transactions.
B2B websites can be extremely useful for businesses of all sizes. They can help businesses to connect with new customers, find new suppliers, and get better deals on products and services.
Business-to-consumer (B2C)
A business-to-consumer (B2C) model is a company that sells direct to consumers through its online shop. This type of website is typically used to sell products or services to the general public.
Because of the smaller-sized market, B2C websites do not need to deal with complex processes and can focus on offering a more personalized service.
Consumer-to-consumer (C2C)
Consumer-to-consumer (C2C) model is individuals that sell their products or services directly to other individuals.
Consumer-to-business (C2B)
A consumer-to-business (C2B) model lets individuals sell their goods to businesses. For example, an app developer may offer his software on a C2B website to business buyers.
What are the Different Types of eCommerce Websites?
1. Single Brand Website
An eCommerce website can also be classified as either single-brand or multi-brand. A single brand site is just that, a site where one business sells products under its own name or private label. An example might be an online shop set up by a fashion label to sell only their branded products. This is common for smaller retailers, as they don’t have the resources to offer a wider range of products under different brand names.
2. Multi-Brand Website
In contrast, multi-brand sites sell many brands and usually charge companies for space on their website.
3. Marketplace Website
Marketplace websites that sell products from many different brands, such as Amazon, Walmart and Etsy. They are similar to multi-brand sites, but usually very larger and have lower overheads so they can provide products at a cheaper price than the businesses themselves do directly.
Those looking into setting up a shop in a marketplace should understand to whom they cater, what the company values are (e.g.,are they a champion of sustainability?), and what the overarching theme of the marketplace is. Amazon is one of the biggest online marketplaces in the world, but it’s hardly the only option for new entrepreneurs. Knowing who are Amazon’s biggest competitors will help with choosing the best marketplace for a brand.
4. Online Retailers Website
Besides the main business models above, some eCommerce websites are simply online stores. There’s nothing new about this as it’s been happening for decades with physical retail outlets, but now it can be done from a home office or laptop.
In fact, some businesses have both an online store and a physical one, where they can sell their products. In this case, you’ll probably see an address from the online store to the physical one that’s closest to potential customers. This way they can offer local delivery and avoid large shipping fees.
5. Affiliate websites
Most affiliate websites are set up as review sites that earn commissions from recommending products or services to their visitors. For example, if you shop at Amazon through affiliate links, Amazon may pay commissions to the advisors where you click the Amazon link and then make a purchase on the Amazon page.
How Do You Make Money with an eCommerce Website?
There are 6 main ways to make money with an eCommerce website: private label, multi-brand, online marketplaces, affiliate products, dropshipping, and subscription.
Private label
These are sites that sell products under their own name or private label.
Multi-brand
These are retail websites that sell products from many different brands.
Online marketplaces
These sites offer customers the chance to buy products from several different brands at a single website. They earn their money by charging the businesses they work with for commission and fixed money.
Affiliate websites
These are sites that earn commissions on sales by advertising products from other retailers through affiliate links.
Dropshipping
Dropshipping sites don’t keep products in stock and instead order them from suppliers when they’re needed. They make their money by charging customers for shipping costs and adding a margin on the price of what they buy.
Subscription
Subscription sites that sell memberships to customers who then have access to certain products or services. They also can offer additional extras, such as email newsletters and online forums, for an extra fee.
Final Thought
No matter what model you use, it’s important to do your research and find out what products and services will work best for both consumers and yourself. Then an eCommerce website will help you achieve your goals.
