Which Are The Top eCommerce Platform Business Models?
There’s no denying the fact that starting an eCommerce platform from scratch is a challenging task. What makes it challenging is the number of things to take care of initially. For instance, deciding the business niche, choosing an eCommerce platform, planning a budget, and not to miss, choosing the right eCommerce business model.
When the fundamentals of eCommerce store development are taken care of, the rest of the process falls into place. In this quick blog, we will talk about the top eCommerce platform business models that are helping businesses generate massive revenue in 2022 and are expected to be highly successful in the coming years.
So, stay with us and look at the eCommerce business models we are about to discuss.
- B2B- Business to Business model
B2B business model is for businesses focusing on providing products from one business to another. A lot of businesses are adopting this business model, such as service providers, software companies, supply companies, hosting companies, and more.
Businesses manufacturing their own products or selling wholesale to other businesses can go for this business model.
- B2C- Business customers model
B2C is one of the oldest and most traditional eCommerce business models out there. This business model is easy to learn and, therefore, the most preferred model for eCommerce beginners.
This business model is highly preferred for retail businesses that sell their products or services directly to the users or customers.
- C2C- customer-to-customer model
In a C2C eCommerce business model, the eCommerce websites allow the customers to trade, buy, and sell items in exchange for paying a small commission to the site. In order to run a C2C business model successfully, careful planning and execution.
Some popular platforms using C2C business models are eBay and Craiglist.
- C2B- customers to the business model
C2B is comparatively a less popular eCommerce business model, but it is gaining popularity steadily. This eCommerce business happens when customers sell products and services to the businesses.
In this model, the customers can advertise their products and even negotiate the bid proposals.
- D2C- Direct to consumers
D2C is an eCommerce business model in which the manufacturer or producer sells the products directly to the customers. In this model, the manufacturers get full control from the packaging to the marketing of their products to the sales strategies.
Selling the products directly to the customers create an omnichannel shopping experience for the end customers.
Apart from the eCommerce business models, eCommerce revenue models are responsible for handling inventory and sourcing products. So, let’s have a look at them also.
Which are the top eCommerce revenue models?
- Drop shipping
This is the simplest form of revenue model to exist. Drop shipping enables setting up a store and accepts customers’ payments through debit/credit cards and PayPal.
- Wholesaling or warehousing
Wholesaling means selling products in bulk to the customers without any middlemen. Warehousing is an aspect of wholesaling that deals in storing the produce or stock so that the wholesaler can sell them when there’s a demand.
- Freemium model
This is another common revenue model used by many businesses and companies. Using this model, the companies offer services for no initial charge but later change a licensing fee to avail the premium features of the app.
- Subscription-based model
Another most widely used revenue model, companies using subscription-based models deliver subscription boxes of products to the customers at regular intervals. There are many companies thriving using a subscription-based model.
- White labeling
In white labeling, the companies can choose products already sold by another company. The company then offers white-label options, designs the label, and sells the product to the users. This type of model is common in the beauty and wellness industries.
So, which business model is the ultimate fit for your eCommerce project?
After going through the eCommerce business and revenue models, do you have any specific model in mind that would be perfect for your eCommerce project? We hope you get to pick the best business model, run your eCommerce business successfully and generate huge revenue. We hope this guide was helpful to you.
