Own a marketplace or have a web store- the fact is all types of ecommerce business models are thriving. Did you know that sales from online stores are expected to increase 78% towards the end of 2020 from the previous year?
It’s understandable to get boggled up and excited due to the latest trends in the online industry. But unless you know how different types of models work and what kind of ecommerce system to choose for your business, you are likely to reach a dead end.
A booming online venture needs adequate market knowledge, a full-proof business plan and the right kind of store builder.
Most upcoming business owners are simply clueless about what it takes to set up an ecommerce business and what options do they have. So first things first, let’s look at the types of online business models and the kind of features expected from an ecommerce system to enable their growth.
Frankly, there are more than 5 types of different online business models but broadly you can split them up in three that is;
B2B: Business to Business Online Sales
What comprises B2B Ecommerce?
Well, the list is endless! For instance, hotels buying bulk cooking appliances from a company, a pharma company selling tons of medicines to suppliers and everything that is sold in huge quantities by one business to another fall under this category.
A B2B entrepreneurship structure includes more inventory, bulk stocking and bigger transactions. Hence, It takes an enterprise-level ecommerce software to tackle its needs.
The kind of features that this business requires is very different from that of a retail web store. Since the majority of the products are purchased in access amounts, you need options such as bulk uploading, custom pricing, tax computing and branding tools like white labeling and so on.
StoreHippo online solution offers a fully hosted solution with no development hassles. Right from building and running it to scaling it and taking it to wider markets, this ecommerce system offers;
- 99.99% uptime with peak load tolerance
- Mobile-first technology and Progressive Web Apps
- Enhanced security with free SSL certification
- Custom entities for pricing, checkouts, enquiry forms, etc.
- Whitelabeling option for branding
- Comprehensive tax engine to process vendor taxes
Despite the fact that popularity to sell online within the B2B sector is growing by leaps and bounds, many manufacturers and company owners are still weighing its pros and cons such as;
Cons: Low User Adoption, Inefficient support for complex processes, lack of human touch and personal experience
Pros: Competitive advantage, Faster order fulfillment, Expansive reach in shorter time
StoreHippo ecommerce software lets you overcome your B2B business hurdles and supports the pros with functionalities such as integrated and automated shipping, bulk uploads through excellent CMS and 24/7 consistent support.
B2C: Business to Consumer Business Structure
The aha moment for e-retailers! According to Statista e-retail revenues are projected to grow to 6.54 trillion US dollars by 2022.
Right from clothing and footwear to selling furniture and groceries, options for online retail shops are limitless! It is one of those sectors that most people think of when they imagine an online business.
Traditionally a B2C model supported by ecommerce software might look simple where a company sells and individuals buy. However, this is also one of the categories that need constant trendsetting, new technologies and consistent marketing gimmicks to stay in business.
Features for appealing and browse-worthy storefronts, functionalities to scale the retail shop to new heights and SEO tools to optimise the website for search engine rankings could be some of the functionalities to consider amongst many others.
StoreHippo solution has lent support to a number of retail ventures by providing them comprehensive features to make their business stand out. The ecommerce system has a gamut of in-built tools such as;
- Rich theme library with easy-to-use drop and drag features
- Mobile Apps - Android and iOS apps without coding
- SEO support along with integration with Google SEO tools
- Easy and effective CMS for enhancing user-experience
- Social logins for users
Indefinitely running an online storefront is much more simple than handling an enterprise model. But grass only appears greener on the other side!
Cut-throat competition, managing inventory and logistics and a constant challenge to boost the average order value are some of the hurdles that B2C stores and ecommerce software need to overcome jointly.
With StoreHippo by your side, you can boost the advantages offered by this model and easily fine-tune your pain-point areas to fetch higher profit margins.
Online Marketplace Structure
What is a multi-vendor marketplace and how is it different from a B2B and B2C business?
A multi-seller marketplace is an online model where you as the owner set up a website and invite different sellers to list their products. You can start selling anything on your multi vendor marketplace - right from gadgets and toys to furniture and artifacts.
eBay, Uber, Myntra are excellent examples of marketplaces that flourished with the support of excellent ecommerce system functionalities. Even a little bit of inspiration is enough, isn’t it?
Unlike a B2B business or a B2C web store, where you are the owner and you need to take care of every aspect from administration to shipment, running a marketplace is a very different experience.
In a typical marketplace space, vendors and the owner have separate and defined roles. While the vendors need to focus on the selling aspect, the admin shoulders the responsibility of building the site and driving the traffic.
Any off-the-shelf ecommerce system cannot promise you to build a marketplace that attracts vendors and buyers and gives you a good commission.
StoreHippo online solution helps you with your marketplace model and provides exclusive features that can increase your ROI by attracting high-quality vendors. With StoreHippo, you can;
- Create a niche vertical marketplace, a horizontal model to sell different products or a service aggregation model
- Add multiple storefronts and create multiple domain names
- Have vendor-friendly dashboards to give sellers complete control of their inventory, sales and accounts
- Set up commissions and compute taxes easily
- Send unified notifications to sellers and buyers to update about deals, promotions, etc.
A good ecommerce software enables you to create an awesome multi-seller space. Nowadays, this is one of the most popular business models since it lets you offer a variety of products to your users on the go.
Do marketplaces also come with pros and cons?
Just like a B2B or B2C model, a marketplace website comes with its own set of advantages and flipsides.
Pros: Relatively cheaper than other business models since you have vendors to list their products, More traffic because of the widest range of traffic, Freedom from managing inventory and sales as the admin
Cons: Challenge to find high-quality vendors in the initial stages and lower margins than in an online store because of profit-sharing with vendors
Grow your desired business model with StoreHippo ecommerce system
You might have come across a lot of store-builders that claim to have a knack in building and running your B2B, B2C or an online marketplace. But have you considered this: What if going forward you want to venture into a wholesale business from a retail seller or convert your web store into a marketplace?
In a situation such as this, you need a solution that is a pro in handling any kind of business model! Equipped with modern-day features, StoreHippo ecommerce software ensures that your business is in safe hands.
With added features besides the ones mentioned above including analytics tools, reporting tools, you get the support of its own aggregator platform ShipKaro. This way, all your logistics needs are taken care of along with carrier support at bargained rates. The platform also enables more than 100 integrations so that your business is up and running and your processes are efficient in terms of performance and speed.
Want to experience the StoreHippo ecommerce software? Take our 14-day free trial store to experience a whole range of future-ready tools. You may also feel free to write to us at firstname.lastname@example.org