Numerous people have the dream to become e-commerce entrepreneur without having any idea where to kick or click. While setting up your own e-commerce site, one need to make choices that in the long run define your business future and business model. There are many ecommerce business models out there to help you running your business according to your requirements. Let’s share some of them with their benefits and downfalls.

  1. BUSINEES TO CONSUMER MODEL

A Business to Consumer model (B2C) is one of the most common ecommerce business models. It depicts the fact of selling the product directly to the user or when a brand directly controls its business deals via online orders. In adopting B2C business model, the big benefit is rapid brand recognition and fame, overall control on marketing hence increase sales. Appaman brand is one of the examples pursuing this e-commerce business model.

  1. E-RETAILER MODEL

An e-commerce retailer offer online sales of products from medley of companies. In this model, retailer will make a wholesale purchase from particular brand and then resell it on their e-commerce platform. The drawback in using this model is no control over inventory of other businesses. Good thing is order of large sizes and more frequent orders to be received. It is a model to perform business with multiple clients.

  1. SUBSCRIPTION ECOMMERCE MODEL

As the trend of customers shopping experience is changing a lot. They want it to be hassle free and simple. Subscription based business model allows user (brand/customer) to finance a set payment for limited time period and product will be early delivered, making it so convenient to the user. The client of today prefer subscriptions because it simplifies their purchasing decisions, assuring not to repeat the same order every month as it will be on their door step before they actual need it. Secondly through flat rates offered by subscriptions, customers shop within their budget.

  1. DROPSHIPPING

Drop shipping enables products shipping and shipping details directly to client with the purchase coming from wholesaler, manufacturer or distributor. Here the merchant doesn’t stock inventory hence no cost on managing inventory. In addition, orders are not fulfilled to customers until their final purchase and payment is done. However there are some shipping complexities and inventory issues in this model as its drawback.

  1. TRY ON

This model targets specified audience like fashion industry. In this model, customers are allowed to purchase the product among the variety and for their convenience they can return that doesn’t make sense and keep what they like.