As a Part Of Internet Revolution In Just a Decade or Less the Internet Has Brought The Offline Shopping Experience Right At Our Fingertips In The Name Of E-Commerce and Online Shopping Is Projected To Growth 6.52 Trillion US Dollars By 2022.

If You’re Reading This In or After 2020 and  Still Alien To The Concept Of E-commerce, You’ve Got Do To a Lot Of Work Before Launching Your Business In The Internet World. So Let’s Go Into The Topic.


What Is E-Commerce?

Electronic Commerce ( In Short E-Commerce ) Is When Commerce Meets The Internet World. It Refers To The Process Of Conducting Trade Over The Internet.

The Technology Development Has Revolutionized The Way People Conduct Business. Businesses Have Gone Global and Serve Customers In N No: Of Countries, They Didn’t Even Dream Of Before.

Types Of E-Commerce Businesses:

  • B2B ( Business 2 Business ) E-Commerce: The Businesses Which Provide There Services To Other Businesses. Mostly SaaS Companies Use This Model. Like:- Oracle, Salesforce Etc.
  • B2C ( Business 2 Consumer ) E-Commerce: The Businesses Which Provides or Sells There Service To The End Consumer. These Businesses Run On The Traditional Retail Model But Sell Their Goods Over The Online. Like:- Amazon, Bewakoof Etc.
  • C2C ( Consumer 2 Consumer ) E-Commerce: The Businesses Which Provides Their Platform To Consumers To Sell Their Products To Other Consumers That May be Used Or New Product. Like:- OLX, Quickr Etc.
  • C2B ( Consumer 2 Business ) E-Commerce: Some Times Businesses May Get To Buy The Products Or Services From Consumers. Like:- Freelance, Domain Flipping Etc.

E-Commerce Business Model:

E-Commerce Business Model Is The Conceptual Structure Of Our b2b, b2c, c2c, or c2b Business Strategy. It Includes The Purpose and Goals Of Your Company and How It Intends To Achieve Them To Make Money. According To The Inventory Management and Sourcing Of The Products, The E-Commerce Business Models are Classified Into 3 Types.

  1. Dropshipping
  2. Wholesaling and Warehousing
  3. White Label Branding.

DropShipping Business Model: Dropshipping Is Very Popular Among Entrepreneurs For Dropshipping The Owner Need Not To Have a Store or Any Logistic Service But For Dropshipping We Need To Be Brand ( Popular ) Among Consumers. Because In Dropshipping You Just Need to Set Up a Storefront ( Website ) and Taking The Customers’ Money Through Credit Cards or PayPal Then Everything Is Up To Your Supplier. But If the Supplier Makes Any Mistake Your Brand Will Be Damaged. Dropshipping Is Trust Game

For Whom Dropshipping is Suited:

  • No Money to buy and store inventory.
  • Who Prefer Mobility Over Fixed Business Locations
  • Focusing More On The Marketing Of The Business

However, there are certain limitations to the dropshipping business model. These include

  • A lot of competition ( Takes More Time ).
  • Low-profit Rates Since Many Dropshippers Sell The Same Product.
  • Heavy dependency on the Supplier.
How To Get Start Drop Shipping Business?

There Are Many Dedicated Dropshipping Platforms. These include Shopify, Aliexpress, Etc.

Image Credits – Shopify

Wholesaling and Warehousing Business Model: Wholesaling and Warehousing eCommerce Business Model is Simple when Compared to Dropshipping Business Model. You Buy Products Directly From The Manufacturer or Dealer At Discounted Rates, Store Them In Your Warehouse, and Sell Them At Profitable Prices. This business Model Suits Businesses with Guaranteed Demand.

For Whom Dropshipping is Suited:

  • Needs A Lot Of Investment.
  • Who Wants To Sell In Large Volume

However, there are certain limitations to the dropshipping business model. These include

  • Need To Setup Stores.
  • Risky Business Model.
  • Need To Sell in High Volume For Profits.
How To Get Start Warehousing and Wholesaling Business?

You Need a Built or Buy a Warehouse ( GoDown ) For Storing The Products and Trucks To Deliver.

Thanks For Reading.


This is Mohanraj Reddy✌️❤️ Creator at Business Mavericks & a Big Dreamer, Wanderlust, Music, & a Trader.

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