Types of eCommerce business revenue models

The eCommerce space has grown in leaps and bounds. The digital space has opened a lot of opportunities following the urge of people to conduct online shopping in the comfort of their homes. The internet has brought the entire global marketplace at the consumers’ fingertips. Towing services in Jacksonville have also been on the front line to offer related products to their customers globally.

Any booming eCommerce business takes intuition, knowledge of the market, a solid business plan, and a careful choice of products and services to fit different eCommerce models. People looking forward to getting into eCommerce space are faced with the challenge of choosing the best model that would work for them. Any electronic commerce typically deals with connecting buyers and sellers, regardless of the classification it takes. It can be business to business, business to consumers, consumers to consumers, or consumers to business.

Types of eCommerce business revenue models

There are different revenue models employed by eCommerce businesses. These models include the following;


Dropshipping is the simplest form of eCommerce. It lets you set up a storefront and take money from customer purchases through credit cards and other forms of money merchants. The next thing you have to work on is setting a relationship with your suppliers. It’s up to you to manage your inventory, rehousing stock as well as dealing with packaging. There are different dropshipping software such as Shopify and orbelo, that you can use to set up your store in minutes.


Wholesaling and warehousing

Another model used in eCommerce is wholesaling and warehousing. This model requires a lot of investment to get started. You will need to manage a lot of inventory and stock, as well as keeping track of customer orders and shipping information. Wholesaling is all about volume. You can push your products through the likes of eBay and Amazon and get sales.


Private labeling and manufacturing

If you have an idea of a perfect product you want to introduce to the market, and you don’t have the required cash or manpower to build a factory, private labeling might be the best model for you. You can liaise with companies that manufacture products you intend to introduce to the market and they will be able to manufacture your products under your label.


White labeling

White labeling is similar to private labeling. The difference is that you choose a product that is already successful in the market and sold by another company but offers white-label options. You design your package and label, then sell the product. It is a common model used in the beauty and wellness industries and becomes more difficult to be emulated in other industries.



With a subscription model, you set up a company that delivers products to customers at a regular, scheduled interval. The good news is that subscription companies have a regular and reliable income stream and can incentivize customers to make additional purchases. The most difficult challenge with this model is picking the right product or niche. Successful subscription models tend to fall into a couple of products in health and grooming, fashion, beauty, and food.