Types of E-Commerce Models That Work In 2019

September 24, 2019 in Uncategorized

Types of E-Commerce Models That Work In 2019

The year 2019 has brought a proliferation of e-commerce business opportunities. A rough estimate suggests that within a year the sale of products online are likely to increase by as much as 80%.

E-commerce opportunities can easily bait enterprising individuals, but lack of knowledge on the part of a potential business owner can lead him or her to make the wrong choice and get into a business situation that doesn’t work out.

Creating a thriving e-commerce business requires an in-depth understanding of your target market, a compact layout of the merchandise on an easily searchable website, and an extensive assessment of the various types of e-commerce models available for use. Those who are new to e-commerce are likely to encounter a variety of challenges, but overcoming them is not difficult. 

Ambitious entrepreneurs who have an inclination to try e-commerce can learn quickly and pick up the tricks needed to be successful in the market. To make yourself comfortable with e-commerce, it’s important to explore your options and determine which is going to work best for you.

Before launching an e-commerce business, it is important for you acquaint yourself with all the types of e-commerce business models that are out there. 


E-commerce, which is short for Electronic Commerce, provides an opportunity to create an online shop and sell directly to clients. All transactions are made through the internet.

The first thing you’ll need to decide is what kind of business you should operate. Next, you’ll need to determine who your target audience is and where you can find them. Is your business selling to individual consumers or to other businesses? Each of these has its own pros and cons. 

These are the most basic decisions you’ll have when you launch an e-commerce business. Part of your decision making process will include determining what model you will use for your e-commerce business.

Here are five of the most successful options available in 2019:


In general, when you decide to launch an e-commerce business, you’ll need to determine if you’ll be making a product and selling it or if you’ll be buying a product to sell. From there, you’ll need to determine where you’ll purchase the product if you decide to buy it and whether or not it will pass through your possession before making its way to the buyer.

For instance:

Drop Shipping

This is the simplest way of selling the product because you don’t need to store or handle the product. You also don’t need to worry about shipping it. Essentially, you serve as the middle man between the supplier and the consumer. 

A customer places the order online and the shipper takes the product and sends it directly to the customer. 

Though this model is convenient and saves you a great deal of common business headaches, it comes with its own set of risks. You never handle the products or see them in person, which means you have no idea what the customer is getting. You’re the “face” of the product, but you aren’t responsible for making it and you have no idea if it’s high-quality or not. 


Wholesaling requires a lot of investment at the beginning because you need to buy a high quantity of products.  However, if you find the right product at the right price, selling wholesale can be very lucrative.

Another thing to consider when getting into wholesale is whether or not you have the storage space for the items you’ll be selling. If you choose to rent a space for storage you’ll need to factor that cost into your budget. Many people choose to store their products at home, but this can be inconvenient and it can be difficult to keep thing organized.

Manufacturing and Labelling Your Own Product

This is a perfect model for anyone with a vision and an idea for a product that is needed by the public. It can generate huge revenue and might not require the initial investment that wholesaling requires. 

However, you still need to manufacture the product. You might also need to consider storage, though this isn’t always the case because in many cases the products are made on-demand.

This option incorporates the best of several different models and is something you can ease yourself into if you aren’t sure about owning an e-commerce business. Many people have gotten their start with e-commerce selling t-shirts or coffee mugs or other products with their own unique design just to get a feel for how the system works.

White Labelling

Another well-reputed model is white labeling. If there is a product that has done well with one company it can be sold to another company but with a different label and packaging. This model has been quite successfully used by the beauty industry and the medical field. 

Demand can be a major problem associated with white labeling. If you don’t have demand for a product or the market considers your actions suspicious, you might not fare as well. It’s important to do a lot of research before getting into white labeling. It can be lucrative, but it is also a lot of work. Often, those who choose an e-commerce business based in white labeling have a team of people helping them with their business.


Subscription services have exploded in popularity in recent years. They began in the beauty industry but have since expanded into many different industries. 

The subscription model provides customers with a box of products based on a certain them. They receive their boxes at scheduled time throughout the year – usually quarterly or once a month. This model guarantees a good income flow because the subscriptions are made on a monthly, quarterly or yearly basis. 

Determining what type of e-commerce business is just the first step to launching a successful endeavor. You need to know your target audience and observe basic business practices to grow your business. Finding the model that best suits your needs is a great place to begin.

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