How to choose an Ecommerce Business model?

When it comes to starting an online business, you have many options from which to choose. The biggest, and perhaps most important choice you'll have to do as it will determine both your business model and a significant part of the future of your business.

In this article, we'll show you a high level every one of the important, choices that have to do. We'll explain the pros and cons so you can take the best decisions at the beginning at the start na binesa you.

What you want to sell?

There are millions types of electronic stores, all with minimal difference. How products are sources, types of products where they come from products in selected collection are they? We will look at two of the most - vazhnit types of e-commerce, you can manage, then we will enter even deeper.

B2B (Business-to-Business)

Business-to-business refers to the model where a company sells to another company. There are advantages and disadvantages to selling other company, and in selling to end users. Pros in this to sell to another company are that size and repeat orders are larger and more frequent, but there are fewer enterprises than consumers and sales are usually higher cost of purchasing decisions.

B2C (Business-to-Consumer)

Business-to-user means that this is a model which is sold direct to the consumer, who will use the product. This is the most common type of business model. It is this model imagine people when discussing the construction of e-business.

It should be noted that there are other business models that are less common, including B2G (business to government).

What type of product you want to sell?

Having examined the two main types of online business model, let's look deeper different types of products you can sell online:

Material goods



Most people associate the sale of material goods to the stores, but the fact that most online stores do. Although material goods are the most popular type of product for sale, there are difficulties. They can be like: storage, inventory, shipping, breakage, insurance, depreciation, etc.

Digital goods





Digital goods are also popular product, the advantage is that they do not require storage, inventory or physical delivery. These products can range from books, images, music, video or software. The greateast disadvantage of these products is piracy. However, their margins are considered the best - best because they can be resold thousands of times without concerns related to inventory, shipping and more.

Services



Services are less common type product that is sold online. Online services can be: filling web content editing, web design and development, consulting and more. To sell its services through an online store ymozhe be a great way to build trust. The disadvantage of this type of product is that there is a limit to the scale of the services normally supplied by a natural person and is limited to the time of that person.

How do you want to acquire this product?

There are four main types of methods for acquiring your products. Here they are:

Make them

Manually making products trend. It does not matter whether it comes to jewelry, clothing or cosmetics. So you define the quality of products they offer, but instead will have less free time.

The main costs associated with making your own products include: raw materials, storage of inventory.

Producer

Another way to acquire your product is to find a manufacturer to produce the product for you. When purchasing manufacturers are able to source from the country and abroad. As you may know, the domestic producer out more expensive than overseas producer countries, such as India, China, Taiwan, Mexico.

Wholesale

Buying wholesale is a very good idea for your online business. Buy their goods (mostly other brands) directly from the manufacturer or an intermediary at a reduced price, which you resell at a higher price.

Buying wholesale is a business model that has less risk than production because:

1) Works with brands that are already established and recognized in the market, which means that you are at risk of zaguva of money and time
2) You do not have to buy a large amount
3) The minimum order will depend on the manufacturer of the product, but that should not scare you, because often they are low, as one unit

Dropship

Underlying Dropshipping-and the sale of products that actually we do not have. With Dropship working partners not just to acquire products that also includes product performance. After accepting online orders them to forward your supplier / Dropship partner. And they in turn send the product to your customers on behalf of your company. The key to Earn Money With Dropshipping is making a profit from price differences between what you charged Dropshipping partners and the amount that you require from your client's.

The biggest advantage of Dropshipping-a possibility to offer a large selection of products without having to purchase inventory or manage it. Dropshipping- and can be a great tool to help you diversify their products and try them out because it is only a matter of time to add a new product in your store.


How do you want to compete?







How to compete is an important decision that could significantly shape the future of your business to dictate key business decisions. Most - commonly used ways to compete are:

Price

To compete on price is not the - best option if you are a retailer. Larger retailers usually have - good options and can always offer a lower price than you. This also leads to price wars that simply undermine the ability of all.

Quality

Competition in quality leads to better or more well-made product. This is a great way for competition, there are signs that the market is shifting towards - and lasting - well-crafted products.

Selection

Competition selection is an incredible opportunity for carving out space in the market. But if you use another method besides Drophipping risk of rising inventory and storage of such a list

Added value

One of the best ways to distinguish the market is to provide additional value to its customers, it makes them buy from you. Content in the form of a great product descriptions, training centers, installation manuals, etc. It is a great example to provide additional value to its customers.

Service

To compete on service can be a difficult process for new and small businesses, but it is a winning strategy. Considering that marketing "word of mouth" is the most powerful form of marketing, it makes sense to compete and to serve its customers an incredible way for people to talk.

Conclusion

Answering four basic questions from this article, you have a good start on the placing of some important components of your e-business model. It is important to bear in mind that some business combinations model will require much more work, so you should be aware of the true value of the time you have to invest in your business and the time needed for your business model. This will significantly increase your chances of success, but also the pleasure you get from the construction, launch and expansion of your online business.