7 Possible E-Commerce Revenue Models For Entrepreneurs
- Last Updated: Oct 22nd, 2018
- Posted by: Editor
- Category: WordPress Support
Are you want to know 7 Possible E-Commerce Revenue Models For Entrepreneurs. We will describe you in this post.
E-commerce refers to the world of entrepreneurs. It is mandatory to listen to new e-commerce enterprises that come every day.
E-commerce for entrepreneurs has emerged as a preferred business option, a major reason for being preferred over other businesses is the ratio of revenue investment, which is better than other options and requires less investment. To make millions online, you have to know about many revenue streams available there.
For those who want to start an online business or make some more money from their existing e-commerce ventures.
List of 7 Possible E-Commerce Revenue Models For Entrepreneurs
The Commission is one of the most popular and easy methods. Also, it is guaranteed revenue generation method followed by most by the most of the e-commerce portals.
This model is really simple – the seller sells and buyers buy, and you earn money from this transaction.
The site owner predefines the percentage (commission) that is charged on each product, which is sold by e-commerce websites by sellers. This commission can be set keeping in the view the market scenario and of course your business goals.
Website owners can charge advertisers for showing their ads on site. Advertisements can be served by website owners own ad server or through third-party networks like Google AdWords.
The revenue may be depending on the type of advertisements like as CPM(Cost per thousand) or CPC(Cost per click).
For many sites, it is the primary source of revenue generation. This type of site earns revenue by charging a subscription fee from buyer or seller to access/sell/buy/avail the services or products available on the website.
Because of the high level of competition, sellers are willing to pay more to show off their products and services at the top. This applies to those P2P markets where you meet your website as a connector, buyers, and sellers in connection with the site owner.
As they say – Competition is always good, as long as you are winning. It can be a good decision if your e-commerce website has the functionality of Featured Listings. It will bring additional revenue in your pocket.
5. Sponsored Emails
This marketing strategy is widely controversial because different marketers have different ideas on it – some consider it good and some bad, but we always look towards the story’s sunshine.
If your email subscribers have agreed that they are happy to receive emails from you or from third parties, then there is no problem sending them emails and so long as the emails and newsletters are of use to them.
Therefore, taking money for adverts placed in the newsletter or distributing a different email from advertisers is probably a great way to earn more revenue.
Remember that, the advertisement should be related to your business. As nobody, who is expecting emails on fashion would welcome advertisement emails on financial products.
So choosing the right advertiser is the key to earn from sponsored emails.
6. Affiliate Partnership
E-commerce websites can be partners with other third party websites and serve as their affiliate partners. By doing so, they redirect visitors to third-party sites and earn commissions whenever their redirected visitors make purchases on third-party sites.
This is a stable and painless way of earning more revenue because you do not have to worry about storage, shipping, etc.
Online fashion social networks such as Wanelo.com work on affiliate marketing models
7. Strategic Partnerships
In monetary terms, the count of revenue is not always suitable. Sometimes there are other things like brand value, goodwill, reliability, etc. which are equally important. It is always a good option to come together for something like this and can indirectly increase the monetary benefits. For example- Amazon and Motorola.
If deciding to stream the revenue before setting up an e-commerce site can get better results and prove to be more productive.
And, even if you missed your revenue model effectively during the establishment of your store, you can now make changes to your website to add new revenue flows.
In this blog, we discussed 7 Possible Revenue Models For Entrepreneurs in Ethe -Commerce business. If you have the other ways to generate more revenue for e-commerce businesses, then let us know.
We would like to include it on our list!
We hope this blog helped you. If you have any query use the comment section provided below.