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What Types of Business Models Are Suitable for E-Commerce?

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Being a business owner is hard, you need to think about so many things - especially if you are doing remote work and not actually having a walk in type of business. Running any kind of business can be all over the place, but running an online can be extremely hectic, so you need a good business model to help you run things more smoothly. This way you’ll at least have a plan in front of you and a semi-clear vision where you are heading! So here are some types of business models that are suitable for e-commerce!

How to choose the right business model?

Starting a new business can be both terrifying and exciting, as you have the freedom to make all the decisions. As you might know, starting with a solid strategy is the only way you’ll ever be successful, so having that down is a must-do first step. It all depends on what kind of service you want to do and what’s your customer niche. Another thing is, how invested do you want to be and how willing are you to risk when trying to make it in this business? Choosing a business model is a good way to start and to have something to focus on, but it all depends on your further plans and if you have them, the size of the business and if you want to take more risk or not!


Since you are dabbling in online spaces, you need to have a good idea how a business works in that environment, as it can be a bit different than regular in real life businesses. Starting from the fact that anyone can open up a company and start their business, with e-commerce being pretty popular amongst those, this comes with a set of legal issues if you want to do your business on a certain platform. You need to think about deciding to form an LLC or be a sole proprietor for your business. An LLC is giving you a structured plan of action and is providing protection if the business fails to pay back debts while keeping your personal finances safe, but if you choose to be a sole proprietor you are basically free to make decisions for your business, but you are not fully separate from the company. It all depends on the size of the business you want to make.


If you want to sell as much product as possible, you need to offer a lot too. You can buy wholesale products and sell them to a buyer in large quantities, but for a cheaper price. This way you sell more stuff, and it may seem like you are losing money - you are not! This business model is getting more and more recognition from the market, as a lot of businesses are interested in buying enormous amounts of goods from the ecommers.


Not a lot of people are talking about this method, but it's actually not uncommon as you may think. The oremiss of dropshipping is that businesses and companies can sell their products online without actually having physically stocked inventory. The business pays a seller as soon as an order is made and then they ship the item directly to someone. The great thing about this business model is that it’s easy, beginner friendly and relatively cheap - so you can start small and build your empire slowly! The downside is that you can get into contact and collaborate with sketchy companies that might sue you/

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Subscription service

If you are unsure what kind of business you are interested in making, consider something you can easily manage weekly or monthly. That’s why having a subscription-based business isn’t doing so bad after all! This way you’ll have a certain product group you can invest in, as you'll have a niche customer group to hit! Having subscription boxes is a lot of fun as you can gather products from different companies and sell them together, regardless if it-s a food subscription, beauty subscription or whatever you have in mind, This is both limiting, but also helpful as you’ll always have a set of products to get, but also you’ll have to be innovative and creative if you go with the ‘every month a different theme’ kind of subscription box. It’s all up to your taste!

Final words

At the end of the day, it-s all up to your budget and ability to provide - starting small is totally fine, as big companies aren’t built overnight. It’s all in having a good strategy, a model to follow whatever it may be, and sticking to it as much as you can. The market is filled with lots of businesses, so you need to put on a good fight in order to survive in such an environment. It’s all about being innovative and strategic, as long as you have those two you’ll run a successful e-commerce business in no time!

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