Today, I am going to cite some proven e-commerce business models that are thriving in 2020.
Do you know what dropshipping is? It is basically a means for businessmen to sell products and services even if they do not have the products on their store shelves. This is where their partner vendors would ship the products directly to the consumer, so it is a really good business model that, to this day, is thriving in the best way possible.
What does this mean for business owners? Well, since you do not have to have an inventory of the products that you sell, you pretty much do not need a warehouse to store your goods.
In addition, you will only need a small capital to start creating your own business that uses this particular business model.
Of course, there are also risks involved such as dealing with a bad supplier or dealing with fulfillment process issues, but for the most part, dropshipping is certainly a business idea that you can get into.
2. Private Label
This business model is where you hire a manufacturer to create your goods for you and then when they are shipped to you, you give it a private label (or your own branding) before you sell it to the public.
This is a good business model because it separates your products from your competition, meaning, that your products are going to be quite unique. Private-label products are also profitable given that people would readily buy a product from someone who has an established space in the niche.
The downside is that you’d have to carefully select your own manufacturer/s. Other than that, this is a lucrative business model nevertheless.
In this business model, you basically sell clothing and apparel with custom designs. You are going to be the brains of the operation which means that you will be the one responsible for the designs.
As for the clothing, you will need to hire a manufacturer and vendor for that. The manufacturer would produce the clothing and the vendor would ship it. So, it is similar to dropshipping in a way, which also means that it also shares the same downsides as well.
As the name implies, wholesaling is selling products in large quantities. Unlike the other business models, you are going to need a large capital upfront, but the profit margins here are amazing.
5. Subscription Service
Although services like Netflix and Spotify follow this business model, I am talking about on-demand services sold on a subscription service. A great example of this would be selling pre-planned meals on a monthly or weekly basis.
This is a great business model to take simply because people live busy lives and they might not have the time to do all of the prepping themselves.