Choosing Right E-Commerce Revenue Model to Generate More Sales

The shift from offline retail stores to online eCommerce is really an unstoppable trend that you cannot ignore. The birth of “ecommerce” happened exactly two decades ago. And the popularity of it never decreased. Nowadays, more and more people are looking for different ways to start their eCommerce business. One of the very first questions that come to mind is how to choose the right eCommerce revenue model to generate sales?

Before you find answers to these questions, there is the checklist you need to consider first-

• Who are the buyers? 
• What are you selling?
• What product model are you using?
• What is the competitive advantage?

Different Types of Ecommerce Revenue Model You Must Know

If you want to start your eCommerce business, you should first explore the revenue models. There are 6 fundamental types of eCommerce models you need to know-

• Business to Business
• Business to Consumer
• Consumer to Consumer
• Consumer to business
• Business to Administration
• Consumer to Administration

Each one of these revenue models come up with added benefits and goals. 

Choosing the Right E Commerce Revenue Model for Better Sales

While you are choosing the eCommerce business model, you need to ask yourself, who are the customers? If you determine the buyers, it will help you to know your business needs. Learn who you are selling the products to and thus it will make your revenue model selection easier.

• WHO ARE THE BUYERS?

With so many eCommerce stores available, you will find some slight differences between them. The difference is the type of product they are selling. What the others are selling and how they are doing it. 

• B2B businesses are involved in selling products from one business to another
• B2C businesses work on sales process when the company provides consumers
• C2C means that the customers sell products directly to the customers
• C2B means that a business model in which customer sells products or service to business

• WHAT ARE YOU SELLING?

The type of eCommerce revenue model you are choosing depends upon the types of goods you are selling. Some of the products that you offer to the customers include digital products, physical goods and services. 

The digital products include selling of online courses, eBooks, and music and multimedia contents. You can choose the right eCommerce model to sell the digital products depending upon the following criteria like-

• This type of products do not need physical shipping
• You can sell countless copies of the product
• Digital products are fast to attain
• There is no physical store involved

Selling physical goods online represents the most traditional type of eCommerce. You can provide these types of items to both the customers and businesses. For physical products, you need to have the right storage, shipping, breakage issues and many more. 

eCommerce stores have multiple services to serve. Some of the most common services offered include web development and designing, marketing services, content creation, office management and lots more. This means ecommerce services can be both online and offline. 

• WHAT PRODUCT MODEL YOU ARE USING?

Have you asked yourself to whom you are sending the products or what are the products? These will help you to choose the right business revenue model. The question is related to selling physical products through eCommerce and the options are making the products, manufacturing it, buying wholesale or working with the drop shipping partners. 

• WHAT IS THE COMPETITIVE ADVANTAGE?

There are few notable competitive benefits you can trust. The most important ones are Pricing, quality, excellent service and selection of the products. 

The discount strategy sounds appealing. The small businesses, mainly those at the beginning, have trouble competing with large businesses. But if you see, the big retailers are ahead of you in this case. If you are not having any issues with storage and inventory management, providing a huge collection of items will help you to compete.

• QUALITY OF SERVICES

Offering good quality products or services is one of the main reasons to compete. It is seen that great products make memorable trademarks among the customers. Today, the whole market is inclined to quality products in place of quantity. 

Choosing the Right E-Commerce Revenue Model For Your Business

Before you pick the most suitable eCommerce revenue model to implement generating sales, make sure that you have answers to all these questions. Choosing the right eCommerce revenue model is a matter that does not happen overnight. Consider all these points discussed above and make a wise selection.