- Feb -
- 26 -
Ecommerce Business Models, Plans & Strategies for Owners
If you want to start or expand your online business and are looking for an effective ecommerce business model, then you should follow this article which will give you information about ecommerce business plan and ecommerce strategies.
Ecommerce Business Models
Ecommerce business models are categorised in five major segments as per their operations.
These five segments are:
1). In B2B ecommerce business model, products or services are provided from one business to another. This can include many things like providing software to different companies so that they can run their office efficiently or it could be in selling office utilities and other office appliances to different businesses.
2). In B2C ecommerce business model the business sells products and services to consumers. The majority of the online business follows this ecommerce business plan. If you want to open an online retail store for your new or existing business, then it will be based on the B2C ecommerce business model. Amazon is a great example of this business model. Small to medium business owners and Entrepreneurs can grow their business like Amazon with this model. You need to create an app like Amazon to start execution of this business model (of course other operations like customer service, inventory management etc are required). It’s not hard to start this model, you just need to contact an eCommerce application development company. We-Guru Technolabs are doing all the process (from idea to launch and maintain the app) of creating and launching this business model. Contact us if you are interested,we offer free consultation and free proposal.
3). C2C e-commerce model which was once very popular online with the business model has lost its shine due to the rising popularity of online retail stores that provide easy access to the individual. In C2C e-commerce model, individual sell product or services of a company to other clients for a fixed commission. As people have become more aware of Internet shopping and online E retailers have also made their entire shopping experience easier, this model is slowly losing its sheen.
Do You Want To Start An Ecommerce Business? Get Experts’ Advice For A Well Planned Starting, It’s 100% FREE.
4).C2B e-commerce model can be compared to affiliate marketing. In this kind of business model, individual sell their services or products to online large businesses. Some example of this is when individuals directly sell their services to big business houses to sell their products online, like the influencers and online platforms.
5). Public Administration e-commerce model is also very lucrative business avenues which you can use to have a good earning.Government departments also offer opportunities to businesses by buying products and services through online route. You can use this model to sell your product to any government institution or government-aided agency.
Ecommerce Business Plans
As an online business, you can adopt different ways to earn a living by designing your online business and form according to your strengths and market demands. Some of these ways are mentioned below for your reference. Some of these business plans are mentioned below for your reference.
A single category plan
If you have expertise in a single category like, fashion, then you can focus on this single sector to expand your ecommerce business. For example, if fashion (or any other business segment) is your focus area, then you can further divide into, kidswear, ethnic wear, ladies, gents, and so on. When you focus on a single area in your ecommerce business plan, then you are in a better position to offer greater quality of services to your online customers as you are focusing on a single service and your effort is focused. You will find that many reputable retail brands follow with this kind of model to improve their brand recognition. Additionally, if you focus your attention on a single product or services, then it will help you reduce the logistic cost tremendously and also simplify the entire process.
Multiple category plan
if you want to target a large number of clients to sell your products and services, then we suggest that you use the multi-category ecommerce business plan. This type of plan is excellent for already established brick and mortar stores to extend their services online. Additionally, those websites that sell single products can also branch out and provide a greater variety of products. Selling multiple products have many advantages; they allow you to target more people who are looking for different products, improve profit margin and protect yourself against any adverse sales due to the problem in one product. It also offers you a greater chances of up and cross sell eCommerce strategies which can boost your revenue drastically.
Affiliate business plan
This is also a very effective business plan to earn a healthy living. Many reputable retail brands use the services of the Affiliates to sell their products to a larger market. This is a win-win situation both for the original seller and the Affiliates. The original retail seller gets an already established marketing chain of the affiliates and the affiliates get the chance of getting regular payment in return of monetize product reviews, writing personal blogs and other services that will help the original seller to gain market visibility to sell their products. Affiliate business plan is not about big bucks (there are some exceptions), but about additional income source to add to your real income.
Hire Ecommerce Experts Team to Manage Your Store
Hybrid business plan
You can also look at this ecommerce business plan that combines the best of individual and affiliate marketing to give you a wider reach and more flexibility. This form of ecommerce strategy is excellent to test your new product in any niche market to find out the response. It gives you to make use of additional product category without the hassle of marketing and managing those additional products. If you are interested in this kind of business plan, then you can list the links of your affiliates in your store website, using widgets to display affiliate product look like yours and an unhindered checkout process from the affiliate website or your own without affecting the overall process.
As there are so many ecommerce business models, it may become difficult for a layperson to figure out which is the best for him/her. We suggest that you plan your move carefully. Look at all the options available in front of you and then depending on your capital, knowledge, expertise and experience, you choose a business model with which you are most comfortable with. After you have adopted an ecommerce business model, then you should figure out all the pros and cons of it. You also need to decide how do you want to execute this business model? You can execute it through an online selling website as well as through an ecommerce application. You can check guidelines below,
You need to understand that business depends on a lot of external elements and if your business is not going smooth, then don’t panic, but carefully look at what is the problem and then find an effective solution to the problem that will help your company earn more profit. If you are not able to analyse the problem then take the help of an ecommerce solution provider company to analyse and sort out your problem, it will definitely make your business smooth. If you business will be smooth then you will be able to focus on other areas of business to expand it exponentially.
Online business requires a deft change in marketing strategies or adopting completely new ones to bring in more traffic to your online store. Online trends change quite frequently, and it is in your interest that you should always keep up with new ecommerce strategies to get the best out of this platform. While there are many ways you can attract people to buy from your website or ecommerce app, we have chosen mainly proven strategies which will give you the best possible result. None of these are listed in any particular order and you need to adopt all of them so that you get the best possible outcome for improving sales in your online retail store.
Here are top 8 ecommerce strategies that grow your store exponentially.
Visualization of the product
The biggest difference that a customer face, when he/she is buying something from your store, is that it does not give them the opportunity to hold the product in their hand.
To improve their experience, you can take recourse to visualization. To make it work perfectly, you can use various features like zoom in and zoom out, product videos that will give the customer an idea about how it will look in different settings/angles and so on. As an interactive part of it, you can use different techniques like the ability to place the product in a particular setting so that the customer can see the overall impact and make an informed choice of whether to buy that or not.
You can also use a 3D representation of the product so that the customer can figure out its dimensions and choose whether it is optimal for his/her needs.
While making product visualization, you should take into account that the experience should be enjoyable and it should not take a long time for the webor app to show objects in a differentsetting, which can hamper the overall buying experience of the customer.Loading time is the most important factor in any ecommerce store hence it must not be ignored in any ecommerce strategies &planning.
Improve search effectiveness
Any viewer of your e-retail store can be classified into two different segments. One of them is those who know, what he or she is looking for and goes through several stores to have the best possible deal for the right price. The second category of viewers comprises of those who are browsing your website or application and are not sure what they actually want. For them, it is important that you upgrade your search and navigation. This will allow them to quickly go to the category in which they are interested in.
To make your search tab very effective, we suggest that you use web/app analysis and a sophisticated algorithm to find out the buying pattern of customers. When you do this, you get information regarding what are those things that customers find more interesting. After that is done, you can design your navigational tabs in such a way that whenever a viewer type something, your website will show the result that is closely associated with.
Use of artificial intelligence
AI has evolved tremendously over the last decade and has now permeated into almost every part of our life. You can use AI along with machine language to create an algorithm that will tell you what features attract the viewer (after going through with his/her past buying records).
Additionally, AI can be used to stock keeping, logistics and even introducing new products. AI gives you a measurable metric by analyzing the vast trove of data available to it. This will allow you to make decisions regarding the business model or ecommerce strategies for your store which is more efficient and highly effective.
“8 out of 10 online business owners have discussed with us about the use of Artificial Intelligence in their business.”
You still have right time to discuss, don’t be late now
The personalization of the home screen
Personalisation of the home screen is another important ecommerce strategy that you can adopt in your website or ecommerce app to attract more viewers.
In this strategy, you can use artificial intelligence along with machine learning to analyze the past buying patterns of yours. On analyzing that data whenever that viewer clicks on your website link or mobile app, the algorithm embedded in your store should show him/her all those products or their compliments that he/she has brought previously.
This strategy, if done properly will improve the conversion rate tremendously as you will be providing those products/services to your viewer that interest them (as per their past buying record).
If you have numerous categories in your ecommerce store then it may confuse the viewers.
To prevent it you can use numerous filters so that your viewer can look for only those items in which he/she is interested. These can be categorized according to their size, color, design, price and so on.
This will affect the userexperience that in turn will not only improve the brand loyalty but also the conversion rate as people looking will get to see only those things in which they’re interested.
Optimized the functionality of your cart
Cart abandonment is one of the major issues that is facing many E retailers today.
If you want to minimize cart abandonment rate, then you should focus on all those irritants that a customer might face when he or she is leaving your website or mobile app.
For this, it is essential that you continuously evaluate your website or mobile app to try to gauge what points in your storeare making it difficult for their clients to buy some product and make an easy payout. Once the problem areas are identified, the next part is to either, completely change it or refine the structure so that the client does not face any issue.
This is a process-oriented ecommerce strategy which helps really well in increasing purchase ratio of the store. Ultimately, you will start earning referral customers (due to mouth to mouth marketing)because of nicer user experience on your store.
Use chat bots extensively
Chatbot is one of the beststrategies for ecommerce store as it guide your customers when they are looking for something. An e-retail site is open 24x7 and it requires a dedicated section that will guide the viewer through the contents, in case they feel any problem.
Therefore,put AI to good use and build a highly interactive chat bots option for your customers.
More payment and shipping options
if you have an online store, then try to provide different payment and shipping options. Different customers’ needs are different and therefore the more options you provide them, greater will be their user experience on your store. This not only improves conversion rate but also the brand loyalty for your online store.
These are some of the ecommerce strategies that you can adopt on your store to improve the overall sales figure organically.