Online Business Models That Will Help Increase Your Sales

top online business models increase sales best ecommerce plans

Are you planning to start an online business? Online business models are important aspects of running a virtual business. It will guide the business owner about the future of an enterprise. Thus, picking the right business model appropriate for your brand is essential. The business model should guide you on what will work or not for the business concept. For more info on business models that work well, read on.

Proven Online Business Models

Merchants (eCommerce)

eCommerce is a business model designed for online ventures. The purchasing and selling of products or services and the transmission of funds or payment is through an electronic network such as over the internet. In the same manner, any business transaction that happens virtually is within the umbrella of eCommerce. Buying products from online stores such as Amazon and paying through PayPal is considered an eCommerce transaction.

Pros Of eCommerce Store

It is easy to make a profit when selling online, especially when your eCommerce store has a decent volume of traffic. You can also upsell by suggesting related items to the product that your customers have been looking for. Upselling can increase the sale value of customers. An eCommerce store’s biggest advantage is that the owner can provide unlimited information to the target audience. This means that you can provide more information for each product that you are selling. Likewise, you can position your business anywhere in the world as long as you can ship the items to your customers. In terms of analytics, you can easily track or monitor what marketing vehicle is generating the best return and what is not. You can also track in actual time the customers that keep on coming back to your eCommerce store.

Cons Of eCommerce Store

Although the transaction in an eCommerce store is online, the drawback falls in the slower delivery of goods. It annoyed some customers waiting for almost 5 days before they received their items. But, the consumers also get more excited while waiting for the purchases. Buying online does not allow customers to try the item before buying it. They only depend on the picture of the product. The consolation that customers get is the return policies. Cybersecurity is one of the major issues involved in running an eCommerce store.

Affiliate Marketing

Using affiliate marketing as an online business model would help your business earn a huge return on investment. So far, it is the easiest way to set and make money among other business models. It does not require creating products, sourcing products, or licensing products. All you have to do is to drive traffic and advertise the product or service offered by other people. Through affiliate marketing, you can generate leads and eventually make sales, thus get a commission.

Pros Of Affiliate Marketing

If you intend to use affiliate marketing in your online business, the best thing to do is to look for a larger merchant that you can partner with. This is because larger brands have a wider range of audiences. As you promote the products or services of your partner merchant, you can also ask them to promote the items you offer to their audience. It’s a lot easier to track which offers are generating more sales for you and those that are just using up your website.

Cons Of Affiliate Marketing

Affiliate marketing is a two-way process, and sometimes one where merchants can be dishonest. They will sometimes only help you if it furthers their interests. This is why you should research before considering a merchant partner. Another disadvantage of using affiliate marketing as an online business model is when your affiliate links get hijacked. That would be a considerable waste of your time and effort as you will then be left unpaid for all your work.

Creating Goods (Manufacturing)

With the internet, most entrepreneurs succeed in their online ventures by creating goods. This online business model will help your business without sourcing from raw materials. In the same manner, there is no need to create a physical product. All you need is software and a video course that will help you create digital products.

Pros Of Creating Products Or Services

The advantage of creating digital products is that you need not deal with inventory costs and return processing. Unlike creating actual products or services, we can copy digital products over the internet and it would take 3-4 days. The target market is enormous and with no shipping restrictions. Potential customers can see your digital products as long as it connects them to the internet. The profit with creating digital products is unlimited, particularly if your eCommerce store has decent traffic.

Cons Of Creating Products

The common disadvantage of creating digital products for an online shop is that you will not be able to reach those who do not have an internet connection. It would be a loss of opportunity and potential customers if they could not see your video presentation about your digital products. Security is another issue if you use this online business model because unscrupulous customers may share your product and leave you missing out. A data leak or hack could cost your company severely and even end your business entirely.


Choosing the right online business model for your eCommerce company merely depends on your budget, timeframe, and goals. Before choosing and implementing any of those business models discussed above, take time to thoroughly research your markets and the constantly evolving digital landscape. Keep all of these tips in mind to build a better business model as an ecommerce entrepreneur.