Online Business Ideas

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The most easy and popular business models are dropshipping and an online marketplace.

There are other popular business models as well such as Online Ticket booking, Online Hotel Booking, Classifieds websites, Aggregators websites etc. which needs a more complex setup using API’s.

To keep it simple, here I have mentioned briefly about dropshipping and Marketplace.


Dropshipping : Dropshipping is a business model wherein you create an online store and the actual product is manufactured and supplied by a dropshipping supplier.

How dropshipping works ?

Step 1
dropshipping process
Online store setup

You setup an online webstore using shopify, oberlo, salehoo etc. with all the e-commerce features such as shopping cart, payment gateway, customer service, marketing ,dropshipping agreement etc.

Step 2
dropshipping process
Online Transaction

A Customer places an order on your website.

You process the payment.

You forward the order to the dropshipping supplier.

Step 3
dropshipping process
Order Fulfillment

The dropshipping supplier fulfills the order by shipping the product directly to the customer and uses your brand name.

The dropshipping supplier is completely invisible to the customer.

Low Investment startup.

Work from anywhere.


Shipping time can be long.

dropshipping supplier dependency can be an issue.

The global dropshipping market size was valued at USD 102.2 billion in 2018 and is expected to register a CAGR of 28.8% from 2019 to 2025.

E-Commerce Marketplace : Online Marketplace is a business model wherein the online presence and marketing is handled by the marketplace and sellers can list and sell their products through this platform.

How Online Marketplace works ?

Step 1
Online store

Websites like Amazon, Flipkart, ebay are Online Marketplaces.

The Website optimization, performance and marketing is done by the Marketplace.

Step 2
Product listing

The Sellers create an account on the Marketplace and list their products with the price and other details.

Step 3
Online Transaction

Customer buys the product through the Online Marketplace portal.

The Marketplace forwards the order to the seller.

The seller ships the order to the Customer.

The website setup and marketing is done by the Marketplace.

Customer support is handled by the Marketplace.

The actual Customers are registered with the Marketplace and not with the sellers.

In 2021, retail e-commerce sales amounted to approximately 4.9 trillion U.S. dollars worldwide. This figure is forecast to grow by 50 percent over the next four years, reaching about 7.4 trillion dollars by 2025.

Farees Ahmed

The aim of this blog is to serve as a quick reference guide for the Curious. Appreciate your feedback and comments !