7 Difference E-commerce Business Models To Choose From
7 Difference E-commerce Business Models To Choose From. Over the years, fortunes in the business world were made through buying and selling of products in stores and super market stores. But today, internet fortunes have made buying and selling of products online easier. While some internet fortunes employed the traditional model, many more and bigger opportunities await the online entrepreneur.
Business Info Finder in this write up bring to you seven different ways to buying and selling of products and services on the internet and making profit through e-commerce.
1. Make your own product and sell it yourself
2. Make your own product and find a third party to sell it and fulfill the orders.
3. Make your won product, find a third party to sell it, and you fulfill the orders
4. Buy someone else’s product, then sell it to the end consumer
5. Buy someone else’s product, then sell it to a re-seller (that is, a third party) with a lower profit margin per product so they can resell it for a profit.
6. Sell someone else’s product without buying it, collect the money, then have the product manufacturer manage the fulfillment.
7. Sell someone else’s product without buying it, then let the manufacturer handle collection and fulfillment. In the this model, you typically collect a commission for the sales that is less than you would have make with the other options above. However, you benefit by not having to purchase or store inventory, or maintain staff to manage fulfillment.
For any product, there are four areas that requires effort; making the products, selling it, collecting the money and fulfilling the orders. You can handle any or all of these activities by yourself, or you can outsource them. It also depend on the product and how you delegate these four activities, you can make a substantial income with minimal effort. Remember: you will have a competitive edge in business when you play up your strengths and hire or outsource your weakness.