A Closer Look at Different Business Models of Ecommerce

However ecommerce is the internet version of traditional commerce, it shouldn’t be ignored that there are some important differences among these two commerce models. Traditional commerce is a business area, ongoing for centuries meanwhile has developed and matured. On the other hand ecommerce is younger than traditional commerce for this reason it is not possible to say that ecommerce has completely matured and has its own outline yet. The internet provides numerous opportunities that cause new occasions in ecommerce, in this circumstances, it is not possible to exactly describe ecommerce. Business models in ecommerce are similar to this description, in various and different times new models appear that were not exist before. We, here, brought together some of them for you. By this means you can easily decide the method you will carry out to set up your business. The models we specify below are only the popular ones and there may be different business models in ecommerce area. It should not be missed that new business models which are not found in the list will be added.

Horizontal ecommerce

The products belonging to different categories are sold on the same platform. You can reach almost every product in this ecommerce model. Amazon may be the best example in worldwide. We don’t recommend especially to beginners who start with low budget, because, at the beginning it is needed high budget.

Vertical ecommerce (Niche)

It is sold only a specific product group (for example, garden equipment) or products belonging to a specific concept (for instance, gift) in these kind of online stores. This model is more suitable for beginners because it is needed low investment for products and logistics.

Private shopping

You probably heard that it’s called private shopping websites to ecommerce sites on which low season products of well-known brands are sold with a significant discount rate. If you have strong relations with suppliers and if you are able to obtain significant discounts from your suppliers, this can be a suitable model for you.

Membership

This business model provides the specific products to the customers without renewing the order. It’s easy to use for the products which are consumed fast, like cleaning or food products.

Intermediacy

It is not needed to sell all the products directly. For instance, most of the time group online stores do not supply the products or the service on their own; they provide the suppliers to sell their products on their online stores. This model is suitable for the sites whose membership capacity is high.

Marketplaces

Marketplaces are the sites that do not sell directly, but give opportunity to the others to sell. The most important measures are to reach a lot of members and high traffic.

Social e-commerce

It’s not possible to say that this is a model which has proven itself because it’s quite new. Social ecommerce, known as f-commerce, means selling on social network websites. It should not be ignored that entrepreneurs may catch significant opportunities if they can start up this area in the right way.

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