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Types of Ecommerce businesses

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In this post, I’ll be telling you about some types of e-commerce businesses there are.

Largely, there are 3 major ways you can make money through e-commerce

1. Dropshipping

This is one of the most popular ways people do ecommerce. What happens in dropshipping is that an individual or business sells things on they buy directly from manufacturers to consumers. In essence, they play the role of the middle man.

Here’s how it works: Mary sees a product on a website (example: www.scrutiney.com), with the assumption that they own the products, and she places an order. But what Mary does not realize is that the website she ordered from doesn’t actually make the products. They are only displaying the product as a reseller (a form of middle man, or woman, as the case may be). It is after Mary orders that the business owner arranges for the product to be picked up and delivered to her. Pretty smart of the drop shipper isn’t it?

If you are considering this line of business, one key thing you should prepare for is the fact that there are tons of other resellers. So, you need to have your plans right.

2. Subscriptions

If you are familiar with a platform like Netflix, the subscription model of e-commerce should not be strange to you. The first thing to note is that subscriptions work best when dealing with digital products such as courses, exclusive clubs, and so on. To succeed in this line of business, you need to have created value people can consume and pay for. Subscriptions are usually controlled with one factor: time. An example is that a customer pays a Dollar each month if he/she is to enjoy the product or service

Some examples of subscription model e-commerce are bookclub subscriptions, business training subscriptions, email newsletter subscriptions, etc.

They’re a great way to retain customers.

3. White labeling

What happens here is that an individual purchases unlabeled products from manufacturers, labels the products, then sells as their own product online. It sounds shady, but it’s a legitimate line of business as long as you have the original manufacturer’s consent. White labeling businesses can be run offline as well.

Let us know which of these you are leaning towards and will probably try out. Don’t forget, we are open to helping you increase your chance of succeeding at any kind of e-commerce business.