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How to choose an ecommerce model?

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How to choose an ecommerce model

Running an online store can be incredibly exciting. 

You’re sending physical products to people’s doorsteps so they can enjoy them and live their best lives.

But before you open an eCommerce store, you need to do three things. 

  1. You need to choose an eCommerce model. 
  2. Choose who you’re selling to. 
  3. And based on those choices, choose a very specific product to sell. 

The first step is to evaluate different business models. Some of them like dropshipping are very easy to get into and require zero startup capital. 

Others like manufacturing require a huge investment of your time and money upfront but give you other advantages down the line. 

You need to find the model that works best for you. This could be about profit above all else. About defensibility and building a business that can last decades. Or about how quickly and easily you want to get started.

 It’s easy to copy what someone else is doing, but it doesn’t mean you’re going to build the business you want. So by really digging into a few different business models, we should be able to find one that’s right for you. 

Here are some popular eCommerce models you need to know: 

  • Dropshipping, 
  • reselling, 
  • white labelling, 
  • manufacturing, 
  • and making it yourself (DIY). 

Each model will have its own pros and cons. Specifically, how easy it is to get started. 

Some models take a lot of time or capital to get started. And if you don’t have those you might have to look at transitioning. If it’s the case, you will also need to equip yourself on how you can transition from one model to another, and why you might want to do so. 

Lots of these models are compatible with each other, and there is some overlap. So, you can start eCommerce with one model and end somewhere else. 

Lastly, it’s essential to know how defensible the business is. It takes a lot of time, mental energy, and money to start a business. And some business models are really easy to copy. So if you go down a particular route, you want to know how to defend it so a bigger company doesn’t copy what you did and take your market share. 

Making a decision on how to choose an eCommerce model is crucial and it’s not an easy and straightforward task. You might need to do deep research and learn about the market before starting up your business. It’s best to help you avoid loss and potential business risk. Looking into a ton of models before starting selling things online, and you will be really glad you did it because you found one that works for you. 

If you like this article and find it helpful, you may also like How To Design A Perfect Checkout Process That Helps Convert More Sales

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