In 21 century we have witnessed that the world has amalgamated more . Consolidation has reflected in every area like politics,trade and business. The trade became easier and sometimes a bit fluctuating.Different scenarios and new wave business solutions had changed the typical conservative trade.Through all these years E commerce has flourished and made its presence in the new era of change. Let’s look at this growth through years
E-commerce is all about selling anything to anyone or buying anything from anyone.It doesn’t need a storage place or large capital.All that you need a creative and marketing mastermind.It demands a new form of marketing and selling that is different form traditional form of business.
This needs
Target ads
Mailing list
Collect leads
Blogging
You can sell the exact thing to the exact person at the exact time and use multiple different channels for this.You can incorporate things like social, commerce and all kinds of other tools to sell. Anybody can setup Ecommerce business by their own online store.
E commerce business models
E commerce business models are quite simple and basic.There are 2 types of business models in E commerce that are marketplace business model and inventory business model.These two business models are developed with the problems which are existing in the market of E commerce and online shops. Marketplace business model strongly addresses the problems of the buyers of the E commerce scenario.Inventory based business model purely formed to resolve the problems of the sellers of E commerce brands and products.
In the marketplace business model different sellers consolidate into one place to make the business.The 3 aspects of E commerce are problem,solution and monetize
Choice of product and its availability was the main obstacle of trade before the era of E commerce.Convenience was the other main issue of buyers. Lack of transparency especially in prices was another drawback.
In a marketplace business model sellers and their products are also should be listed.So the buyers can see all the products and brands in one place.So this is an umbrella business model.
How to monetize the marketplace business model
The E-commerce company could demand a commission from the sellers in the marketplace. They can demand a fixed amount.The marketplace owners can charge from the sellers for their advertisement too. They do the paid listing and demand fixed charges too.
Inventory business model
Inventory based business models developed from the problems in the perspective of a seller.
Especially before the rise of E commerce the sellers could only do business near to their store or warehouse. Inventory based business model is the earliest form E commerce business model. But the marketplace business model flooded through these years and inventory based business model companies also changed their pattern to marketplace model.Thus market place based business model became the giant in E commerce world. Nevertheless some companies are following inventory based business model too .But we can see that e commerce giants like flipkart and amazon now following the mixed model of marketplace and inventory business models.They are also walking forward with their private models so that they get a huge margin with this.They promote it within their personal platform and generate bigger profit and income.
E commerce giants have their own logistics arm and payment infrastructure.They give membership subscriptions too.
The new age has changed it tastes and aptitude .So E commerce business has its on pace in the changing world and scenarios.
