Introduction to e-Commerce Business Model

 In E-Commerce

Introduction to e-Commerce Business Model

In the last few years, many players have entered the E commerce business. In the current situation, due to the COVID-19 lockdown many customers have transferred towards online shopping. Also known as Electronic commerce and online shopping.

In recent years the online shopping business has grown by 38.2% when compared to last year. The current market size is $45, 894 Million USD. Expected to reach $74,095 Million USD by 2024 with a 13.1% CAGR growth rate. Source:

e-Commerce Business Model

The online business uses an online platform with a website and application. This platform becomes an intermediate for both buyers and sellers. It does the customer relationship, server maintenance, tracking the process and collecting feedback, etc.

They offer these services to the seller and also connect the right customer (buyer) for which it gets commission from the seller.

There are just three interface buyers, an e-commerce site, and a seller. This is how this business model works.

Types of e-Commerce Business

There are many strong players ruling the market like Amazon, Flipkart, Shopify, Snapdeal, IndiaMart, Netmeds, 1 mg, Myntra, etc.

This business model comprises of four types:

  • B2C – Business to Customers.
  • B2B – Business to Business.
  • C2C – Customer to Customer.
  • C2B – Customer to Business.

The major junk of potential falls under B2C, where people buy basic groceries, appliances, electrical and electronic gadgets, etc.

The potential of this online business is huge day by day. Amazon alone has almost 322.45 million visitors in India and Flipkart shares another 242.62 million visitors.

There is a huge opportunity lying behind this industry and many entrepreneurs are generated with the help of digital marketing and affiliate marketing.

Benefits e-Commerce Business

There are many ways by which you can indulge yourself in this business.

  • Promoting someone’s product as an affiliate or influencer marketer.
  • Converting your own offline products into Online presence.
  • Contracting between manufacturers or wholesale shops and selling it in the e-commerce platform.

What are the types you can sell?

  • Retail products
  • Digital Products (SaaS, Softwares, etc)
  • Online courses
  • Services

The most important is that having all the related certificates like GST, FSSAI, etc.

There are many opportunities in this business model, as the customer comes in search of your product and the marketing works are done by the E-commerce platform.

It doesn’t require a huge investment like handling a supermarket or a retail shop.

Less documentation work is required. Can be handled by few workforces and if you are a newbie you can manage in a single hand.

Requirements in e-Commerce Business
  • You will be requiring a few key materials. Like, Internet connectivity, Desktop, printer, and packaging materials.
  • Create your brand value. Once you build your branding value, you will be unstoppable in sales.
  • To create branding more than digital marketing, you should have a strong social media presence. Especially in Facebook, and Instagram for B2C. For B2B, strong presence over LinkedIn.
  • You can use YouTube also to promote your brands.
  • Initially, don’t invest in a website with E-commerce facilities.
  • Start earning as a seller by your own products or selling some products which you could purchase from manufacture. Have a good relationship with the manufacture or wholesale owner in terms of payments.
  • This will bring credibility over you and they will supply you even in lesser quantity.
  • Once, your cash flow starts into your business plan to open your own e-commerce site. Do complete digital marketing to boost traffic organically.
  • In e-Commerce business, the sky is the limit until you work in a potential niche.
Important Checklists
  • Choosing a potential niche, where there are more unmet needs.
  • Should be customer-centric in the complete process.
  • Should always value your customer’s feedback and change accordingly. Responding to customer’s queries will always make them loyal.
  • If there are any defects in products, step down, and rectify them as soon as possible.
  • Customers should impress on the way you pack and the service you offer them.
  • Focus on a single category of products and make more reach out of it.
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