Choosing an e-commerce model is key to the success of your online business, because starting a web-based store is more than merely setting up a web site and posting images of products. It’s about how you’d need to set aside time, finances, and other resources. It’s also about warehouse management and order fulfillment.
You can choose to sell digital (intangible) products or physical products, depending on your skills and interests. Thus, it’s essential to find your passion and be true to it. Because, without passion, you’ll probably feel “stuck” when things get tough. This article will discuss five e-commerce models and their benefits to consider. Every model is unique and has the potential to grow exponentially, as long as you’re passionate and eager to promote the business.
Sell digital or physical products that you create
If you’re good with creating digital products, like videos, audios, and articles, you can sell training videos and e-books. You can sell all kinds of digital products via E-Junkie. If you prefer selling physical products, you can choose to sell items of your creation, such as on Etsy. You do, however, need to make sure that each order is fulfilled and shipped promptly.
Sell other people’s digital or physical products
As an “affiliate,” you receive a cut of every sale. This business model is very popular among online marketers with multiple high-traffic sites or blogs. However, you have no control over product types and items sold. If you prefer writing, publishing, and promoting articles, it might be the right model for you, as the browser cookies and the affiliate owners will do the rest.
Sell other people’s physical products that you source yourself
This unique dropshipping business model doesn’t require you to stock any inventory before they’re sold. All you need to do is set up an online store, choose products to sell online, and upload their images and specifications to the site. Next, make sure that the site receives as much traffic as possible. Every order received will be fulfilled and shipped directly by the wholesaler, so you can use your time to promote the business instead.
Sell subscription boxes for physical products
Selling subscription boxes is a business model that you can start with literally zero capital, assuming the products are samples from partnered vendors. It also provides a good stream of steady monthly revenues. The fulfillment and shipment can be easily outsourced. Thus, when it has run well, it’s an automated business with million-dollar revenue potential.
Sell memberships for digital products
If you’re good at creating evergreen content, such as online training classes and other exclusive high-value infoproducts, you might as well start a membership web site. It allows you to enjoy steady monthly revenue and upsell and cross-sell other products, while positioning yourself as a thought leader in the field.
Last but not least, choose an e-commerce business model that’s the most convenient for you and the one that you can commit yourself to. Take note of the business models that interest you, so you can study them further and do a test case to start!