An eCommerce business is a booming industry but it takes more than selecting a brand name to make it profitable, it all boils down to how much traffic you can generate to your site. In simple words, you must get buyers and have them purchase from your online store to make enough profits. As a brand marketer, you must consider important pillars of ecommerce profitability like supply chain optimization (introduce omnichannel fulfillment), product selection, pricing and promotion, anticipate buying patterns, behavioral data, optimize inventory levels, automate processes and focus on customer acquisition and retention.
Strategies to make ecommerce business profitable:
The key to a thriving ecommerce business is to constantly evolve and upgrade with the latest technologies, as that shapes and strengthens the foundation of this specific business. To make your ecommerce business grow successfully you have to always be one step ahead of planning everything. We have listed down the points that will effectively help you to strategize your ecommerce business:
Types of Ecommerce Business Models:
If you are planning on starting your own ecommerce business, it is imperative to go through all the other ecommerce business models that can possibly uplift and contribute to your business values and ethics. Below mentioned are the types of ecommerce business models that will help you to make your online business successful along with monetizing it properly:
Successful Ecommerce Businesses
Sephora- Sephora was already running in the ecommerce game back in the 90’s. The brand highly owes its success to a super efficient ecommerce business model, which the brand knew was a necessity from a really long time. Being one of the first brands to hire an inhouse web developer, Sephora changed its ecommerce game by launching a revamped website focusing on improved visuals, and a guide for all customers across the globe to access product information. Creating a stable team of inhouse designers and developers, be it web or web based content, the brand smoothly adapted to various omnichannel platforms to efficiently meet customer needs.
Amazon- Since the brand’s origin in the year 1994, it has been evolving and adapting to several technological advancements. When other brands in the similar marketing arena were figuring out how to establish and implement the most feasible ecommerce business model, Amazon had already established its first high technology based contactless stores, branded as “Amazon Go”. The most enticing factor about this initiative was that it needed zero labor force. The retail giant could run an entire business with no human employees, setting a benchmark for pulling off an initiative absolutely automation based. Owning an advertisement business worth a few billion dollars, the brand has successfully reached out to millions of customers with the help of smart technology and perceptive digitization.
Walmart- Walmart uses the sales ecommerce business model to bring in maximum profit to the business. Increasing sales upto almost 79% in the beginning of 2020, Walmart is now the second largest US based ecommerce retailer. The secret to Walmart’s ecommerce success is an efficient network of online stores that give customers complete control over their shopping experience. Any online purchase via Walmart’s ecommerce website gives customers higher discounts, saving more time and making the process convenient. Unlike other brands that follow the online marketing model, Walmart doesn’t only provide exceptional service in meeting customer demands but also empowers the firm to identify individual needs of customers to keep coming up with upgraded and effective strategies.
To cater to the convenience and comfort of customers, marketers have adapted to the ecommerce business which is a highly competitive marketing arena. Though ecommerce business can be highly profitable, it largely relies on the business model and the strategies the brand implements in their business.