5 Product Revenue Models in E-commerce That Work Right Now
All types of e-commerce business models are flourishing.
Sales and profits from e-commerce stores are expected to boost by 78% by 2020.
It is easy to get excited and caught up in the current e-commerce trends, but if you don’t know the basics, you will hit a wall without even realizing it.
E-commerce is actually a broad field, but the easiest way to define it is the particular exchange of products and services online. Physical, digital, or affiliate products fit in this purview, as do many services that involve an exchange of money online.
As my focus is on product-based e-commerce business, I will describe some of the top Product Revenue Models in E-commerce in this article. I will give a couple of examples so you can easily find what they look like in use, too.
1. Single Product Model
Single-product businesses concentrate on a single item, possibly on different levels, offered to consumers or businesses.
One case in point is Nvivo, an application package created by QSR International. The Nvivo software program is the only product of QSR and QSR also offers supplemental materials and training for users.
This is actually a good model if you have a good product with limited competition and is in high demand. In any other case, you better treat it carefully i.e. don’t put all of your eggs in one basket.
2. Single Category Model
Whenever you test the waters in an e-commerce market, a single-category website can certainly be a clever choice. By offering carefully chosen items, you can easily build your credibility and reputation without spending too much money. Many retailers began with a model like this and several are using it today.
Remember to always make subcategories — take textbooks, for example.
If you open an online bookstore, your category will be ‘books.’ But what kind of books? College textbooks? Alright then. What subject?
Determining a single category is difficult when you start to give it some thought. Steer clear of overdoing it, and always try to stay focused. The important thing to get good results for a site like this is to concentrate on a particular user avatar and their likes and dislikes, then try to pull a part of all those interests that seems to turn a big profit.
3. Multiple Category Model
Multiple-category e-commerce websites make the perfect choice for established physical stores.
Sellers who’ve experimented with a single-category website successfully and are willing to expand their businesses might be geared up for multiple-category websites, too.
Product selection has become the most challenging part of dealing with this type of website. One bad item may ruin your popularity, and if you’re sourcing from multiple vendors, the bigger your store is, the more challenging logistics will become.
Some examples of multiple-category stores are Cultures for Health, Target, and REI.
4. Affiliate Model
DoTerra Essential Oils, Amazon, and a large number of other companies are increasing their product sales with the help of affiliate marketers.
Often through weblogs, but in some cases through dedicated stores, affiliate product sales benefit the original seller by providing a supplemental presence and by providing a chance to generate income from a personal blog, product reviews, or other sites.
The majority of affiliate websites are usually not big bucks makers, but they provide an extra income stream for websites that mostly rely on some other income streams.
If you are interested in an affiliate model of e-commerce, then designing your store with a strong, responsive element is important, and hiring the best web design company is no different. Visit this link and see what should you do for your e-commerce website design: https://7elementswebbdesign.com
And if you already have one and want to find some affiliates and other vendors, then JVZoo is a good place to check.
5. Hybrid Model: Affiliate + Single Category
For companies that have outstripped the profits streams or the product that is confined to a single category store, becoming an affiliate hybrid and single category store will be beneficial.
This approach gives the advantage of an extra product category without requiring to commit to managing and marketing extra products.
We hope you enjoyed this promoted piece as much as we did!