With an estimated 2.14 billion global digital buyers, it is hardly surprising that both new and established businesses are capitalizing on our love of online shopping. However, before you dive headfirst into the world of ecommerce, it’s crucial to know how to choose the most profitable ecommerce business model for you.
The best business model for you will depend on various different things: your product, your budget, your inventory management forecasting skills, your digital marketing experience – the list goes on and on.
While it is tempting to jump on the latest trend or go with what feels like the safest option, solidifying your ecommerce business model early on will prevent later confusion and help you on the road to steady, long-term success.
It will also decrease your chances of being in the dreaded 20% of businesses that fail during their first year.
So, whether you are still searching for a profitable product idea or you’ve sourced your products and are raring to go, now is definitely the time to identify which business model best suits your individual needs.
Core Ecommerce Business Classifications
First, let’s take a look at the major ecommerce business classifications. This will help you identify the most profitable ecommerce business model for your chosen products and/or services.
B2C – Business to Consumer
B2C is the most common business classification. Anything you buy as a consumer online – from groceries, to perfume, to a new laptop –…