What is an ecommerce:- Ecommerce is the medium which provide you freedom for selling any goods online . by the help of Ecommerce you can establish your online store and you can sell anything online
Ecommerce business models of all types are thriving. Sales from online stores are expected to increase 78% by 2020.
Basic Element of an ecommerce website :-
As we already know that ecommerce is a place where we can sell and buy online and the same makes an ecommerce website from other websites. There are some basic components which is a must have for ecommerce website like :-
- Cart
- Checkout
- Payment method
- Products
- Logistics
- Website functional rules
- Coupons and discounts(optional but recommended)
Classification of ecommerce websites :-
There are two main categories you’ll need to familiarize yourself with before you start your ecommerce business:
Types of Ecommerce Business Models
- Dropshipping
- Wholesaling and Warehousing
- White-labelling
- Manufacturing
- Subscription-based
Product Models for Ecommerce
- Single Product
- Single Category
- Multiple Category
- Affiliate
- Hybrid
You’ll also need to identify an ecommerce platform that suits your preferred business model’s needs.
Drop Shipping
The simplest form of ecommerce, drop shipping lets you set up a storefront and take the customers’ money. The rest is up to your supplier. This frees you from managing inventory, warehousing stock, or dealing with packaging, but there’s a major caveat.
If your sellers are slow, product quality is lower than expected, or there are problems with the order, it’s on your head (and in your reviews).
Wholesaling and Warehousing
Wholesaling and warehousing ecommerce businesses require a lot of investment at the start – you need to manage inventory and stock, keep track of customer orders and shipping information, and invest in the warehouse space itself.
ECOMMERCE SOLUTIONS FOR WHOLESALERS businesses are about volume. You’ll need to push products
Private Labelling and Manufacturing
If you’ve got an idea for the perfect product, but don’t have the cash or desire to build your own factory, this might be the right ecommerce business model for you. Companies that manufacture products offsite for sale send the plans or prototypes to a contracted manufacturer who produces the product to meet customer specifications and can either ship directly to the consumer, to a third party such as Amazon, or to the company selling the final product.
On-demand manufacturing allows you to quickly change suppliers if you encounter problems with product quality. The start up costs are minimal, and if you’re interested in potentially opening your own production facilities later, this is a good way to test a new product or concept.
White Labelling
White labelling is similar. You choose a product that is already successfully sold by another company, but offers white label options, design your package and label, and sell the product. This is common in the beauty and wellness industries, but more difficult to encounter in other niches.
One problem with white labeling is demand. You’re stuck with whatever you order, and most of these companies set a minimum production quantity. If you can’t sell it, you’ll have to live with it. Consider this option when you’re willing to work full time on your business and know your product is in demand.
ECOMMERCE SOLUTIONS FOR BRANDS
If you have your own line of branded products and need to get
Subscription Ecommerce
One of the most popular and successful pure ecommerce in which companies rely on a subscription model that delivers customers a box of products at regular, scheduled intervals. Subscription companies have relatively reliable income streams and can easily incentivize customers to purchase additional subscriptions or encourage their contacts to subscribe.
Picking the right products and niches can be difficult. Successful subscription boxes tend to fall into a small handful of product categories: health and grooming, beauty, fashion, and food. Outside of these areas, few subscription companies thrive.
RECURRING BILLING ECOMMERCE SOFTWARE
I love the idea of a subscription based ecommerce business.
Product Models
Once you’ve identified who you are selling to and where, you need to think about what you want to sell. Some businesses sell a single white-label product, while others offer a full selection of niche-specific products. Yet another model depends on affiliate programs across a wide swath of categories. Before opening your store, you need to decide the type and number of products.
Single Product Model
Single-product ecommerce businesses focus on a single product, potentially in varying levels, offered to businesses or consumers.
This is a good model if you know you have a solid product with high demand and limited competition.
Single Category
When you want to test the waters in an ecommerce niche, a single category site can be a smart choice. By offering a small selection of carefully chosen products, you can build your reputation and credibility without overspending. Several retailers started with a model like this, and many continue to use it today.
Keep in mind that you can always make subcategories – take books, for example. If you open a bookstore, your category is books. But what kind? Textbooks? Ok. What area? Defining single category ecommerce is challenging when you really start to think about it. Avoid overdoing it, and stay focused. The key to success with a site like this is to focus on a specific customer avatar and their interests, then pull a subset of those interests that seems most likely to turn a profit.
This is a smart model for new business owners, and requires minimal effort and investment to manage. The main drawback is that you’re only likely to catch the interest of a very small portion of ecommerce shoppers.
Market place
The E-commerce marketplace or the online e-commerce marketing is a place or a website where one can find different brands of products coming from multiple vendors, shops or person showcased on the same platform. The marketplace owner is responsible for attracting customers and the processed transactions, while the third party vendors deal with the manufacturing and shipping. Online Marketplace streamlines the production process through one simple portal, where the manufacturers sell their products directly to the consumers, therefore avoiding the stagnant process of stocks holding. This kind of supply chain management is usually referred to as the “Dropshipping” method
Companies like Amazon, eBay, and Flipkart (India) have experienced massive success in the eCommerce marketplace business model
Hybrid [Single Category + Affiliate]
For businesses that have outgrown the income stream or the product confines of a single category store, becoming a single category and affiliate hybrid store can be beneficial. You can test related product categories in your niche, risk-free, to see what your customers like. This gives you the benefit of an additional product category without requiring you to commit to marketing and managing additional products.
There are many ways to make this category of ecommerce stores work, from listing affiliate links on your store’s blog to using widgets that allow affiliate products to look like the products sold on your ecommerce store, with a seamless checkout process that won’t disrupt the buyer’s journey.
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