Online Selling Business Model Best Suited E-Commerce Strategies Model Brand Store and Other Marketplaces Pros and Cons.
Table of Contents
What is E-commerce?
So E-Commerce or Digital Ecommerce is one of the best way in current times to create a successful business and even provide job opportunities for so many people.
So now we will understand this with very easily with an example. Suppose you are a stamp maker and have an offline shop.
Now if you want to or plan to expand your Business, you can do it in 2 ways.
- Either you will create one more outlet somewhere else which will obviously require a lot on investment eg. purchasing/renting a shop, renovating, furniture, staff, etc.
- Or the other way is to create an online store with a very small amount of investment as compared to the first option. All you have to do is create an online and have a good photoshoot and product listing on your online store and promotion (You have to do this in Both options).
Types of E-commerce?
Majorly there are B2C and B2B.
B2C
Now you can either opt for B2C where you can sell your products directly to customers. This is majorly a retail sector where customers order 1 or 2 products on an average order. So in order to make a good amount of Sale revenue you need to some great e-commerce strategies to get as many orders from the maximum number of customers. And if the customer likes the quality of your product, there are some chances of getting repeat customers.
B2B
If you understand the concept of B2C it is very easy for you to understand the concept of B2B. IN B2B you do not deal directly with the customer or final consumer instead you are selling your goods to another business. In this type of Business you will mainly get bulk orders or wholesale orders. And With model you can make a Good sale revenue with fewer Orders also. Moreover in this business model the number of repeat customers is very high if your product and your services are good.
E-commerce Strategies or Modes?
Basically there are 2 Modes or Strategies E-commerce of Business here:
You can sell on Others Store or Marketplaces. There are so many Marketplaces in the US where one can list his or her products or services for example Amazon, Walmart, Etsy, Ebay, Instacart, etc. When we sell on these Marketplaces they charge us with some amount as fee and also shipping charges and some extra misc. charges. We also have to spend some amount on these individual portals for marketing Ads.
You can create your Own Store online in many ways. Here you have options of selling products online through your own website which you can create yourself through platforms like shopify or hire an expert to create one for your Business. Or you can also sell your products through social media page stores. Many Business are running solely through social media accounts. Mainly if your Business is related to custom or Handmade products there are chances that your business will grow Much faster through this mode.
| Selling On Other Platforms | Selling On your own Platform | ||
|---|---|---|---|
| Pros | Cons | Pros | Cons |
| No or Minimum Account Setup Cost. | Some Platforms Charge Monthly Subscriptions. | One Time Website Creation Cost | Monthly Or Annual AMC service Charges |
| Greater customer trust value of these platforms | People have different preferences to different platforms | Once the customer like your product and Services The customer Trust is built then there are maximum chances to get repeat order through loyal customer | It is very Challenging in the Beginning to built customer trust. |
| They charge fee on every order you sell and Customer return | No Fee on any order. You only have to pay shipping charges. | ||
| Profit Margins are very less | Profit Margins are very High | ||
| Competition is very high | Competition is Less | ||
| You have to build brand value for every platform and most platforms have unique customer base | As your brand grows your brand Value also grows. | ||
| Ad spend is very high as you have to advertise on every portal. And every portal have other sellers advertising there product your audience on your product page. | Ad spend is normal as there in such ads targeting your website. | ||
Which is the Best Way to Sell online?
As per my opinion the best way to sell through both the modes because when you sell your product on others Marketplaces it will help your brand reach maximum audience and create trust. But you will make great profits through your own website. As we have discussed the pros and cons of both these strategies. You decide according to your budget and business idea, which mode or combination you would prefer. Do share in the comment section what you will be you Choose from this or if you have your own E-commerce strategies.
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