The world has no shortage of business ideas for e-commerce stores. But which ones are worth pursuing and which ones are not? It can be hard to tell. And with over 1.92 billion people buying things online, an eCommerce store has a lot of potential buyers. This makes it a worthwhile endeavor for those wishing to find a good source of income.
Best eCommerce Business Ideas for Revenue in 2022 (Money Making Ideas)
The eCommerce sector is booming right now, as you’ve surely heard.
Yes, it is correct! According to experts, retail eCommerce will exceed $4.13 trillion this year, with mobile commerce accounting for 72.9 percent of the market.
There is no better moment than today to start an eCommerce business, given the current trend of people buying online and on mobile devices.
While you may have good intentions for having your online store up and running, there is a learning curve involved. The greatest place to begin your research is to learn about the many types of eCommerce business models and websites.
It will be easy to decide how you will run your online store and how you will monetize your business once you know what business models are accessible. Let’s look at the many sorts of eCommerce business models in more detail.
Continue reading if you’re unsure which eCommerce company ideas are worth pursuing.
But First, How to Build an Online Store?
In today’s world, creating an internet store has never been simpler. All you’ll need is a domain name, web hosting, and an eCommerce website builder to get started. You can get one up and running in minutes even if you don’t have any design or coding skills or experience.
This is due to the existence of website builders, of which there are a plethora. The most popular website builders don’t require any prior coding or website design knowledge. They do, however, have a high price tag.
Alternatively, you may create a free online store using WordPress and manage the eCommerce side of things with a plugin like WooCommerce. When compared to the monthly fees of traditional website builders, it’s a fantastic, cost-effective option.
8 Ecommerce Business Ideas to Try
In addition to providing you with a large consumer base, there are other reasons why having an e-commerce site makes sense. Ecommerce sales, for example, are expected to account for 21.8 percent of all retail sales by 2024.
These figures demonstrate that e-commerce is rapidly becoming a big factor in the global commerce game. So, without further ado, here are eight of the most innovative eCommerce company ideas for 2020.
1. Beauty and Health Products
The beauty and health sectors are among the world’s largest. Even with all of these internet business ideas available today, they are still quite successful. This is a terrific idea for young individuals who are strong at e-commerce marketing.
Your chances of success are excellent as long as you can express the value of the things you’re selling in people’s lives.
2. Selling Second Hand Products
People are fine with using secondhand goods as long as they are of decent quality and in good condition. All you have to do now is start collecting used items like clothing, jewelry, and furniture and list them on your e-commerce website.
You must also ensure that you are charging reasonable fees for them. Before increasing your reach, you might start by seeing how well this idea works locally.
3. Smart Watches
Smart wear is all the rage these days, and people want more than just analog and digital watches. People use smartwatches for a number of reasons, such as fitness and planning their entire day.
They have become so popular that their sales are expected to reach $53.2 billion in 2019. This makes them one of the top eCommerce business ideas to try.
Smart Home Products
The Internet of Things (IoT) has progressed significantly. People enjoy having all of their devices connected so that they may communicate with one another and anticipate their requirements.
Coming home from work and opening the garage door, for example, should cause the air conditioner to switch on. If you’re stressed, it should also tell your smart speaker to play some soothing music.
The mood tracker software on your smartphone might help you figure out how much stress you’re under.
As you can see, the Internet of Things enables you to design a smart house. Despite the IoT’s potential and the public’s enthusiasm for the technology, few people offer these gadgets online.
Finally, this is one of the most innovative online retailing business concepts. It provides you with the option to benefit from the sale of these items.
5. Online Educational Courses
There are many successful entrepreneurs and teachers that have valuable knowledge to share across the globe. And you can build online shops where these people can create and sell courses to people. While there may be a lot of platforms that sell courses, the demand is quite high.
There are so many fields, niches, and vocations, that one platform can not provide them all. This is your chance to provide people with educational content not found anywhere else.
6. Selling eBooks
Gone are the days when you needed a publisher to start selling books. That’s why selling eBooks is one of the best eCommerce business ideas of 2019. You can either write the books yourself or get someone to ghostwrite them for you.
As long as you can write something of value on any trending educational topic, you will have a chance to sell a good number of copies.
7. Content Writing
Content writing is a useful service that continues to grow in value over time. If you are skilled at writing material, you can open an online store to market your services. (You may even prepare the content ahead of time and sell it.)
Of course, you’ll want to start by making yourself more affordable and available. However, as your business grows, you can raise your rates and set your own hours.
8. Kids Toys and Games
Video games, smartphones, and tablets appear to have replaced conventional toys and games in the eyes of children. This is not the case, as proven by the fact that toy companies continue to produce them.
Dolls and action figures are still popular among children, and there is a market for them. Begin with a minimal investment to determine which toys are popular and expand from there.
What are the different types of eCommerce business models?
The first step in starting your online business is understanding the different eCommerce business models. Typically, eCommerce businesses fall into one of the following four categories.
Let’s take a closer look.
1. Business-to-business (B2B)
The business-to-business eCommerce model is structured just like it sounds. It’s where businesses sell products to other companies. Types of products include anything that enhances another company’s business practices.
One of the best examples of a B2B business is a software company. Think Salesforce, HubSpot, or SurveyMonkey. All of these products are for the benefit of a business, and it wouldn’t make sense for the typical mom-and-pop consumer to invest in enterprise software.
2. Business-to-consumer (B2C)
The business-to-consumer eCommerce model is also straightforward. It’s when a business sells products online, or via a mobile device, directly to consumers.
Business-to-consumer eCommerce companies are companies that you and I visit online every day to purchase things like clothing, books, makeup, etc.
Top B2C eCommerce companies include giants like Amazon, eBay, and Alibaba.
It’s also critical to remember that B2C companies don’t have to exist solely online like Amazon and eBay.
B2C companies can also have a brick-and-mortar store and, if it makes sense, can start an eCommerce website. Examples of this include large fashion retailers like Nordstrom, J. Crew, H&M, and more.
3. Consumer-to-consumer (C2C)
A consumer-to-consumer business model is when one consumer makes and sells a product to another consumer.
One consumer may use a platform like Amazon, Etsy, or eBay to sell products to another consumer. With online eCommerce tools like WooCommerce, consumers can even set up a C2C store on their personal website.
4. Consumer-to-business (C2B)
The last type of eCommerce business model is consumer-to-business. This is where a consumer, or individual entrepreneur, sells their products or services to businesses.
Good examples of C2B businesses would be a business consultant, a freelance graphic designer, or a social media influencer with a large audience.
What are the different types of eCommerce websites?
No matter what type of eCommerce business model you choose, they all have one thing in common. All eCommerce stores run on the internet. This means you need a website.
Here are the different types of eCommerce websites to consider.
1. Single brand website
An individual brand website is a site that only sells the products or services of one business or person.
It’s also the most common type of website for people starting an eCommerce store, and probably the type of website you will start.
An example of a single brand website would be Patagonia.
If you go to the Patagonia website, you aren’t browsing every type of outdoor apparel. You will only find Patagonia products.
It doesn’t matter what eCommerce business model you have. If you only plan on selling your own products, you’ll want to build a vendor-specific website.
For example, if someone navigates to the B2B Salesforce website, they will only see Salesforce products.
Similarly, my business is a C2C business. I sell freelance writing guides and products to other freelance writers. I built a single-brand website to suit my eCommerce needs.
2. Online retailers
The next type of eCommerce website is also common, especially for large retailers. Online retailers are bigger stores that typically wholesale other brands’ products.
For example, Dick’s Sporting Goods is a place where you can buy different types of sporting goods and outdoor apparel from different brands. Let’s stick with the Patagonia example, but apply it to an online retailer situation.
If I navigate to the Dick’s Sporting Goods website, I can set my filters to find Patagonia products. Dick’s Sporting Goods doesn’t make Patagonia products. The brand’s buyers purchase large quantities of Patagonia products directly from Patagonia and sell them at a higher retail price on the website.
You’ll also notice that Patagonia isn’t the only brand Dick’s Sporting Goods sells on its website. Consumers can also buy products from competing brands like Columbia, NorthFace, and Nike.
3. Affiliate websites
Retail isn’t the only way to make money with an eCommerce website where you sell other brands’ products. Another option is to set up an affiliate website.
An affiliate website is where someone sells other brands’ products on their website in exchange for a commission.
If you build a website and attract a large following, setting up an affiliate website is an awesome way to generate additional revenue.
Another type of eCommerce website is a marketplace. A marketplace is a website where individual entrepreneurs can list their products for sale.
The most popular examples include Amazon and Etsy. Etsy and Amazon provide an online marketplace for vendors to list and sell their products.
While Etsy and Amazon are the largest online marketplaces, it doesn’t mean there isn’t room for smaller marketplaces, especially niche marketplaces.
StockX is an example of a smaller, niche marketplace for people to sell shoes.
If you have an idea for an online marketplace you know would be successful, there is no better time than now to get your website up and running.
How do you make money with an eCommerce website?
Since eCommerce is all about providing a product or service and making money, it’s important to understand different revenue models.
As you are setting up your new eCommerce website, you can choose one or more of these revenue streams. Here’s a quick rundown of various ways to make money with your eCommerce website:
- Dropshipping – Dropshipping is where you sell a product on your website for a commission, but all the shipping is handled by the brand.
- Affiliate marketing – Affiliate sales are when you sell someone else’s product on your website in exchange for a commission.
- Subscription – A subscription is when you offer to continue sending a product or offering a service in return for a monthly payment.
- Private labeling – Private labeling is when the brand makes, labels, and packages the products themselves.
- White labeling – White labeling is when someone purchases a product from a manufacturer and rebrands and repackages it.
There are other types of revenue models, but those five are among the most common for new retail brands.
Plenty of e-commerce business ideas exist in the world today. Some are worth pursuing, and others are not. It is up to the prudent entrepreneur to research and find out which ones to try. Check out some of these great eCommerce podcasts for inspirational stories and ideas.
As you can see, you can sell plenty of things online (almost anything), from health and beauty products to toys and games for children. Being able to open an online store is one of the great joys and benefits of living in the internet age, and you stand to make a handsome profit.