Top 4 Business Models That Work For eCommerce Websites

6 min readMar 12, 2024

With the constant evolution in technology and products being available in just a few clicks, it has become indispensable for a business to have an online store for a global presence. Many businesses have already entered this dynamic space, but several companies still rely on brick-and-mortar stores. Even though some have online stores, their presence is negligible because of their business model.‍

It is crucial to adopt the right business model to get an advantage in the digital world. According to a report, over 4.4 million new ventures were created in 2020 in the US — the highest total on record. However, the truth is — very few of them will survive because of the fiercely competitive nature of the business world. This is where a business model can help you.‍

Experts always recommend going with a business model that is well-suited and aligned with the current industry standards and marketing landscape to leverage your business. But how to choose the best one?‍

First, understand your business and target audience to create a strategy. Ensure you gather data from multiple sources to avoid guesswork and make a plan that can work for your business. You can contact a web design company to help you know which business model meets your needs.‍

To create a plan, you need to be well-versed with the different types of models, their benefits, and major components of the eCommerce business model.

Let’s start with a quick introduction.

What is a business model?

A business model is an approach to making the establishment profitable. It helps in identifying the services, costs, products, and costs.

Evaluating the business model is paramount for both new businesses and existing ones.‍

You can perform SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. It is a strategic management and planning technique used to help an organization or person get an edge over their competitor and plan projects. It is sometimes even called situational analysis and situational assessment. If you think you need help, you can reach out to an experienced web development company; they will help you analyze your company’s existing situation and curate a plan to improve it.‍

Why is the business model necessary for eCommerce websites?

When starting an eCommerce store, you should ensure that you have a strong business model in place. A business model helps you determine how you’re going to stand out in the market, reach and retain customers, and how customers are going to get a hold of your services and products.‍

It will allow you to conceptually structure your business to drive sales. There are various types of eCommerce business models that allow companies serving in different industries to position themselves in the market.‍

There are two layers to choosing a perfect model for your business:‍

  • How you are setting up your company: It defines who you are selling and how you sell your products.‍
  • Figuring out your actual eCommerce business model: The way your business approaches customers to interact with the products and services. A web design agency in California will help you optimize your site as per your business model so that you can easily connect with your customers and sell your products to them.

Advantages of having a business model

Implementing a unique business model will help you dethrone your competitors, and it will also create a buzz among consumers and encourage your first-time purchasers.‍

Let’s take an example of a handicraft shop offering online ordering for customers. This facilitates easy ordering and makes payment easier, cuts down phone time, and increases employee productivity. Whoever first introduces this business model will surely get an edge over their competitor and can drive huge orders to their desk.

To sustain a profitable business, you need to create a solid business model for your business. It will allow you to build a cash reserve that can be used for different purposes, like research and development, which will ultimately help you grow your business.

The biggest advantage of a business model is its contribution to making an organization capable of bearing economic storms or shifting marketing conditions. A staggering number of businesses close their doors every year because of poor financial management. Having a business model can provide owners and managers a tab of exactly how much profit is being made each month.

Lenders and investors are well acquainted with the market. No matter how good your products and services are, the lender and investor will ask about your plan for profitability. Answering and elaborating their questions will give you an advantage over competitors when seeking new financing.‍

Top 4 business models for eCommerce websites

With this model, you can club up remote work and in-person experience. It is a mix of traditional products sold through subscriptions. The model has both online and offline presence, providing options to customers to purchase from where they like.‍

In simple words, it is an eCommerce networking business model. In this model, the aggregator collects all data related to the products and services offered by several competitors and then displays them on their site. The best part about the model is that aggregators need not invest in inventory and warehousing. Here, they only act as a platform/domain where the visitor can look for the products they want to purchase and compare the prices and specifications of the different brands.‍

One of the examples of this model is Airbnb. It is a community-based online platform that connects people who want to rent their homes with people looking for accommodation when on vacation.‍

In this model, a business can purchase products from other manufacturers and then store them in their inventory. Later, they sell and deliver the product based on the product’s availability. Implementing this model will allow you to drive high-profit margins and increase productivity and efficiency.

The best example of this business model is Sephora, a retailer selling cosmetics and commodities. If you want to implement the inventory business model successfully, you need to talk to a web design company because they excel in designing storefronts that can help you achieve your goals.‍

This model allows businesses to connect with two or more groups of people directly. It facilitates connection, thus making it easier for them to interact with each other. Uber (a ride-sharing company) is one of the best examples of this model.‍

Significant components of the eCommerce business model

Customers usually compare the prices of the product they wish to buy. This is why it is critical to evaluate your product pricing. It’s ideal for standardizing your pricing strategy to succeed in the eCommerce world.‍

The first impression of your site has a lot more importance in catching customers’ attention. You will be amazed that around 38% of visitors don’t like to visit a site again if they find it unattractive. That’s why providing a smooth and personalized experience is very important to translate your prospects into loyal customers. In addition, you can also offer loyalty and referral programs to retain your customers that will help you maintain the cash flow and save your money, which you might spend on new customer acquisitions. So, consult with a web development company and make your website’s UI and UX aesthetically appealing.‍

When you plan to launch a product, look for an efficient way of sourcing the product. Whether you make it by yourself or source it from any manufacturer, it’s crucial to ensure the quality of the product. If your products are good and leave a positive impact on your customers, you will gain their trust, which will improve your reputation in the market.‍

Store security

Today, customers are very conscious about their personal and bank data security because of the increasing online fraud. If you run an online store, you should ensure that your site has all the security measures in place. Failing to do so will mitigate the trust among your customers, which can damage your brand’s reputation. It’s best to approach a web design agency in California to improve the security of your store and protect it from data theft and vulnerabilities.

How will we help you design a website that suits your business requirements?

Redesigning your website is a key to reviving or kickstarting your eCommerce business. Our unparalleled strategic, end-to-end planning and project execution technique will help you build a robust, responsive, and secure site. By choosing our web design services, you can boost your website’s online strength and easily scale it to reach your revenue goals. We focus on implementing the business model you follow on your site to ensure that you can easily align with your customers. Our experts provide you with technical assistance and allow you to customize the site so that you can bring your ideas into reality.‍

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