Jul 16, 2021
There are different types of Ecommerce businesses that you can create, and you have to choose the best model or method that will work best for your store. In this episode, you’re going to learn the top 3 Ecommerce business models.
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In this episode, we are going to talk about three of my favorite Ecommerce business types. These are all fulfillment methods to get your products into the hands of your customers. I’m going through each but something I really want to emphasize is that each method really doesn’t matter TOO much. At the end of the day, what's important is that your customers get the product.
Ecommerce business model #1: Dropshipping
This is one of my favorite Ecommerce business models. In this
method, you list the products on your site but your supplier ships
the product directly to your customers. That means someone places
an order and you send the address and customer details to your
supplier and they just send it directly to the customer.
Advantages of this Ecommerce business type:
1. Quickly test out your products and target audience without
needing to purchase inventory
2. No need to stock the products yourself
Disadvantages of this Ecommerce business model:
1. The supplier might mess up the order
2. It’s hard to deal with returns
3. You can't personalize the packaging of your products
Ecommerce business model #2: 3PL (Third-Party Logistics)
In this Ecommerce model, you buy the inventory but ship it to a
warehouse where another company takes care of packaging it and
sending it to customers. So when an order comes in, you send the
details to the warehouse and they take care of sending it to
customers.
Advantages of this Ecommerce business type:
1. Allows you to not have to rent a warehouse or deal with
employees
2. Easily keep your eCommerce store fully remote
Disadvantages of this Ecommerce business model:
1. Wrong products could be sent
2. Shipping could take longer
3. You couldn't customize the packaging
Ecommerce business model #3: Shipping the products yourself
This is where you get the products shipped to your house, garage,
or your own warehouse and then ship them out to customers from
there. This type of Ecommerce model allows you to make more profits
while also having a really high-quality shipping and unboxing
experience for your customers. It means that you can ship out
orders really quickly and add notes and other gifts for your
customers in the packaging.
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