Sales Revenue Model:
Posted: Sun Feb 16, 2025 4:29 am
eCommerce businesses are rapidly reshaping the world of economics by using exciting new initiatives and ‘social selling’ strategies. However, they can become profitable only if they use the appropriate revenue model.
Deep Dive into the eCommerce Revenue Model: The Complete Breakdown
Now that we know the workings of eCommerce businesses let us look at the different revenue models that this platform can support. Each model offers distinct advantages. Let us consider each of them here:
This is the default eCommerce revenue model, and eCommerce businesses showcase finland phone number list physical products via images, text, graphics and videos. Potential buyers browse, select and purchase products at these online storefronts. The most common product categories sold via the sales revenue model are fashion, electronics, home supplies and similar products.
Businesses earn by charging higher than the cost of goods. However, this model’s challenge is managing the inventory and logistics and shipping on time to customers.
Sponsorship Model:
In this revenue model, the eCommerce business is sponsored by a third party. The sponsor is chosen based on shared goals, values and the audience. The sponsor commits to offering a certain amount in exchange for marketing collaboration. The sponsor uses the storefront to market their products. However, this revenue model is successful only if the revenue distribution between the two parties is well-drawn.
Deep Dive into the eCommerce Revenue Model: The Complete Breakdown
Now that we know the workings of eCommerce businesses let us look at the different revenue models that this platform can support. Each model offers distinct advantages. Let us consider each of them here:
This is the default eCommerce revenue model, and eCommerce businesses showcase finland phone number list physical products via images, text, graphics and videos. Potential buyers browse, select and purchase products at these online storefronts. The most common product categories sold via the sales revenue model are fashion, electronics, home supplies and similar products.
Businesses earn by charging higher than the cost of goods. However, this model’s challenge is managing the inventory and logistics and shipping on time to customers.
Sponsorship Model:
In this revenue model, the eCommerce business is sponsored by a third party. The sponsor is chosen based on shared goals, values and the audience. The sponsor commits to offering a certain amount in exchange for marketing collaboration. The sponsor uses the storefront to market their products. However, this revenue model is successful only if the revenue distribution between the two parties is well-drawn.