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 ?
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 ?
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.
