Top Three Ecommerce Business Models

Are you wondering about the best wholesale e-commerce platforms that can strengthen the basis of your business? There are various types of e-commerce models that people use as per the requirements of the business. In this post we are going to mention the three most commonly used e-commerce models loaded with various beneficial features, so let’s get started.

White Labeling

In white labeling, you have to select a product that is already popular in the market. Another famous company is selling that product successfully. Then you make your label and design your packaging for the product. This way you sell the same product but with a different package and label. This practice is usually seen in the wellness and beauty industries and is difficult to use in other niches.

A major problem that people often come across with white labeling is demand. You have to manage within the quantity that you are ordering. Usually, the original company selling that product has less production quantity so you have to deal with product limit issues. So keep this in mind whenever thinking of white labeling and choose a product that is high in demand and has a large production limit.

Wholesaling and Warehousing

For this type of wholesale e commerce platform, you must have a lot of investment. This is the main issue when starting a wholesaling and warehousing business because people usually do not have that much investment at the start. But this investment is necessary for the management of stock and inventory. Wholesaling and warehousing e-commerce requires you to keep track of your customer’s order and also stay updated with the shipping information. Most importantly you must have a good amount of money for buying or renting warehouse space.

One strategy that you can use for helping yourself with this type of e-commerce is by offering piece prices and case prices. This way you will be able to sell your products to both retailers and the general public. As a result, you can enjoy a higher profit margin as compared to a strictly wholesale model.

Shipping

Last comes drop shipping which is the easiest type of e-commerce. With the help of this e-commerce, you can take money from the customer via Paypal or credit cards and set up a storefront. This is all you have to do and the rest of everything will be done by your supplier. As a result, you are free from the management of warehousing stock or inventory. Moreover, this also saves you from the hassle of dealing with the packaging. But one thing to consider is that you might face issues in this e-commerce if your sellers are slow and have low product quality.

To Wrap It Up

An effective wholesale e-commerce platform is the need of every business and you can never deny this fact. If you want to satisfy all your customers, market numerous products, and facilitate the customers in every way, an e-commerce platform will surely do all this for you. Go through the features of the above-mentioned three most used e-commerce platforms, and pick the one which suits you perfectly.