Websites for Sale? – Business Models of E-Commerce for 2018!
Websites for sale? As business owners and investors alike, it is imperative to understand the foundation and
structure of certain ecommerce business models, when looking at websites for sale.
This will help to establish the best business model for the next buy or sale of your website.
Also, an increased understanding of the base and structure of the platform, will
help in the preparation of a great business plan.
The execution of the plan is just as important of an element,
as the structure itself, so, both will be reviewed to maximize your bottom line.
Remember, having the right knowledge, will help pave future success,
regardless of retail, or ecommerce.
Websites for Sale – Best Business Models for 2018?
There is no one size fits all, to any business model or business mold,
regardless if it is through eCommerce or not.
This is because, there are so many ever changing external and internal components
of technologies, that can influence the direction and business course.
Keep in mind, that electronic commerce,
draws on many different web and internet technologies.
These web tools, are required to advance the mission of online electronic business expansion.
The areas of technologies that ecommerce derives its success
and advancement on, are as followed:
- Electronic Funds Transfer
- Supply Chain Management
- Internet Marketing
- Online Transaction Process
- Mobile commerce
- Electronic data interchange or EDI
- Data Collection
- Inventory Management Systems
Increase in Ecommerce Business Models?
With the increase in ecommerce business models, and
it makes sense to review the basic structure and operation of each model.
This is because, even though this new online marketplace is booming,
it still needs to be examined for complete comprehension.
Increase in Trend? – 2018 and Beyond!
This trend shows, that many new prospects will be
entering this new digital buying platform, so be ready for it!
You always want to make sure that you have a solid business plan in place.
This will help to maximize your investment dollars and end results,
without creating any present or future loss.
Think of it, as a risk insurance management policy,
protection for your business future.
Introduction to Ecommerce Business Models and Types
So, what are the ecommerce business models that you need to
understand, before you buy or build?
They are classified as the following:
- Business to Business – B2B
- Business to Consumer – B2C
- Consumer to Consumer – C2C
- Consumer to Business – C2B
Business Model – Deciding Factors for Ecommerce
When considering what type of ecommerce business to buy or sell,
make sure you consider a few things before.
For example, you will want to identify the platform that best suits your preferred business model.
This means, what will enhance your current investment or business portfolio.
You can be a current software company owner, looking to add a
new piece of web technology to your current business model.
Or, you might be brand new to the ecommerce marketplace, and want to branch into it,
before it becomes overly saturated with buyers and sellers.
Whichever the case, it is always best to understand the framework and business approach
to anything, before you buy, sell or build.
Ecommerce Business Models
First things first.
Different types of ecommerce business models exist,
and are listed below for your convenience and reference:
- Drop -shipping
- Wholesaling and Warehousing
Do not be alarmed, if everything above looks foreign.
Each item above, will be examined in detail and discussed in
relation to each business model platform.
The business model platform is geared towards online electronic commerce exchange and industry.
This means, understanding the inner components to this business practice,
to help decide on the business opportunities available through both
online and ecommerce website purchase and selling.
Discovery of Ecommerce Business
Business opportunities are revealed through analysis, research
and close case examinations.
The next area of discussion in these online business article pieces,
will take a look at the different forms of ecommerce,
starting with drop shipping!
What is Drop-shipping?
Drop shipping is considered by many online resources,
as the simplest form of ecommerce, out there on the market in 2018!
This is because, everything is done for the business owner.
Think of Drop shipping as a fulfillment business model.
This allows the products to be bought individually from a wholesaler,
and then shipped directly to the online consumer.
This is instead of buying a large inventory base, right up front.
This traditional means, can be a costly out of pocket expense,
no matter if you are just starting a new business venture or not.
Business Risks of Drop Shipping?
You always want to consider the risks involved in any buy or sell.
The risk should always be compared to the benefits of the business model.
The benefits in most cases, should outweigh the risks.
The supplier in this example, would ship the product directly
from business warehouse to the customer’s residence.
This all takes place for a charge for the shipped items.
Yes, that’s it.
Everything else in the transaction process is, handled by your supplier.
This allows more time to be allocated to other important business and operational tasks:
- Inventory Management
- Stock Warehousing
- Packaging Dealing
Drop Shipping Case Examples – Where to Locate?
For example, the only area where the business owner or retail owner needs to be
concerned with in the transaction process, is the scheduling part of the customer to meet at a storefront.
This is usually scheduled to take money for product that was purchased from the customer.
You can always go to a supplier directory, to find drop shipping suppliers.
These such suppliers can be found from directory lists, like the world-wide brands website.
You can ask the supplier if they offer any drop ships as products.
This will help direct you in the best possible way.
Drop-shipping Ecommerce Software
There are examples of drop shippers who use software or web-based technologies
to advance this online marketplace of shopping.
This was done through an inexpensive way however.
This is because the set-up costs are little to nothing.
The software model, is easy to set up, and can create more online visibility and traffic to your main business website.
Such software that can advance this goal is, Shopify.
This is a popular way to hit Facebook Ads and increase online exposure in the social arena.
It is noted however, that profits can be extremely thin on this business type platform.
This is in part because, if the seller is slow to act, and you cannot deliver a
high-quality product, deep seeded problems will occur.
This is because, business profits are marginal in this business model type to begin with,
and profits must be squeezed out when possible.
An example of an online ecommerce business site using the drop shipping function would be,
What are the benefits of drop shipping?
Like with many business models and operations,
there are good and bad types of operational functions.
In this example of drop shipping, we will first focus on the advances of this ecommerce model type.
The advantages of using a drop shipping model are strong.
Some of them include:
- Lower Capital Requirement
- Wider Product Selection
- Reduced Risk
- Lower Capital Requirement
- Wider Product Selection
- Location Independence
- Highly Scalable
What does Lower Capital Requirement Mean?
The benefit of this data selection from drop shipping should be examined
again to help better explain the answer to this question.
This is because, with Drop Shipping, there is no need to
put money up for an investment of thousands of dollars.
That means, you only buy product or merchandise,
when an online customer places an online order.
What is Wider Product Selection?
This is an ecommerce business type, where you do not have to pre-purchase or
have in physical stock, merchandise for your online customers.
This means that you can offer a larger selection of more
online products, to your online customer base.
This can help to expand your business income and profit streams.
Just think of the advantages of not having to:
- lease or buy,
- extra storage space,
- or facing the risk of losing any unsold merchandise or products.
New Business Venture and Drop Shipping?
If you are a new business venture, this may look like a very attractive
business model base to buy, sell or build.
This is because, it shows a reduced risk investment, from not having to
lose thousands upon thousands of lost inventory products.
All the risk factors involved in housing products in warehouses,
are avoided with this new way of doing online business transactions.
The risk is drastically reduced, so even if the business venture turns sour,
you are not in the hole for the lost product or merchandise.
Location Business and Remote Freedom
Not having to rely or worry about running a fulfillment agency or warehouse, is one thing.
Doing it from anywhere in the world, is another thing.
This independence from location strings,
is very attractive to all types of buyers of ecommerce businesses.
This is because, it can easily adapt to an existing retail, brick and mortar business,
regardless if the retail business is in the city of Long Beach, California or Garden Grove, CA.
So, outside of having the independence of working from anywhere in the world,
the business is also, highly scale-able.
Highly Scale-able Business Model
This is because, as we already mentioned, the manual labor part
is removed from the buying and selling transaction process.
So, this can help an ecommerce business, with the control and
freedom to easily scale a drop shipping business.
These are attractive online business decisions and incentives.
You will want to consider them when deciding if drop shipping
is the right type of ecommerce business for you.
Now that we have discussed the advantages of having a drop
shipping ecommerce business, lets discuss the cons.
Disadvantages of Drop Shipping and Ecommerce?
The most popular reason for a disadvantage of this business model is, the increased competition.
It is not like you think however.
The problem does not start with increased competition. This is just an aftereffect
of the ecommerce buying trends in 2018.
Since many new business investors are hitting the ecommerce buying stage,
this type of ecommerce type is very attractive.
Own your Own Online Business
Because, it allows for little capital upfront, or, to have a physical storage place for products,
like a warehouse facility.
The attractive qualities of owing your own online business,
without any physical strings per se, is very appealing to many.
But this appeal also works as a disadvantage.
Yes, this happens, because with an increase pool of new buyers and sellers of ecommerce,
so are more buyers and sellers for drop shipping ecommerce.
High Competition, Low Margins
This business phenomenon can happen in many business types, regardless if they are online or not.
This is because, the more competition, the more diluted the business investment and profit pool becomes.
This is because, the access point to this new business flow, is backlogged with
this new surge of online users, who are interested in entering
the field of information and technology science.
With these new business trends forecasting even more
buyers and sellers of information and technology,
only more will be entering the online marketplace for buying and selling purposes.
This channel of business and information trade,
will now overflow or become over concentrated.
This only exacerbates the idea of a face to face meeting,
which is recorded by e- commerce educational online sites
Websites for Sale – Concluding Thoughts:
Lower Profit Margins for Ecommerce Business?
Unfortunately, this surge of online buyers and sellers,
from quality content and efficient help,
only lower the margin for supermarket placement.
This is because, it makes it harder to financially grow
as a business if you cannot afford to spend money on advertisement.
This is because, now with so many new people and companies hitting the industry,
advertisement becomes attractive, and expensive.
These should be considered into your business plan, when approaching