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Best Ecommerce Revenue Models For Entrepreneurs in 2021

Best Ecommerce Revenue Models For Entrepreneurs in 2021

Ecommerce is booming, and entrepreneurs should make the most out of it.  

Here are some of the best ecommerce revenue models for entrepreneurs: 

1. Wholesale. 

Selling in bulk has been a popular commerce strategy through the ages. 

The process is simple. 

All you need to do is to sell your products in bulk. Offer the people who come to buy from you a reduced price since they are taking inventory off your hands. 

The real way to scale a wholesale business is to increase your sales volume. 

From a strategy point of view, ecommerce wholesale is the same as regular commerce. 

Drive more traffic to your site, have a compelling offer that would appeal to bulk buyers, and provide excellent customer support throughout the customer’s shopping experience. 

In recent times, wholesale ecommerce has seen significant growth.  

Traditional businesses who chose to move online find greater value in doing wholesale ecommerce. They have to worry less about warehousing their products. Seasonal product sellers also find the wholesale ecommerce model to be super beneficial. 

2. Dropshipping. 

Dropshipping is a modern revenue model that has helped improve lives globally. 

Your role in a dropshipping business would be to play the role of a middleman. You help move goods from one person to another. 

The great thing about ecommerce dropshipping is that you do not have to deal with inventory management. 

When an order comes, the manufacturer directly ships the product to the customer. You, the dropshipper, do not have to deal with the physical product, allowing you to do more in less time and resources. You can further ease your processes by getting an app designed for your business, mobile app development dallas company is proficient is designing such mobile applications.

But dropshipping is not as easy as it might sound. 

You still need to deal with getting new customers, handling returns and customer support, etc. 

Every revenue model has its pros and cons. If your primary purpose is to help grow a brand and make money while avoiding all the hassles of manufacturing a product, then dropshipping is ideal for you. 

But if you want to run a successful business without putting in any hard work, then even dropshipping would not work for you. 

3. D2C. 

Direct to customers or D2C is another ecommerce revenue model that entrepreneurs should look into. 

When you are dealing directly with customers, you have a lot more control over business processes and how things are done. 

D2C helps eliminate a lot of costs that you have to bear in any other business model. 

The defining characteristic of D2C is that businesses don’t necessarily need to have a physical storefront. Customers can scan D2C websites or socials and order products at their convenience. 

Quality control becomes a lot more manageable in D2C. You are in complete control of the products being developed and shipped out to the customer. 

Providing top-notch customer service is also a big part of the D2C business model and industry-wide practice. It helps build trust and establishes the legitimacy of your ecommerce business. 

Your advertising, marketing, and sales can also afford to be a lot more creative since you have a specific niche to go after.  

4. Subscription-based services. 

Subscription-based services are a more modern revenue model on this list, and entrepreneurs should be looking into it. 

Popular subscription-based services that immediately come to mind are the Dollar Shave Club and Scentbird. Both saw an opening in a relatively saturated market and innovated their way to ecommerce success. 

The key to running a successful subscription-based service is identifying a service that people are willing to pay for repeatedly. It doesn’t necessarily have to be monthly; it can also be quarterly or even longer. 

Subscription-based services need to be more personal than other revenue models listed here. Since you are not reaching out to anyone and everyone, investing time and resources into nurturing your limited subscribers makes sense. 

Innovation is another vital part of any subscription-based service’s success. If you keep selling the same products over and over without changing any part of your offering, then eventually, your competition is going to catch up and beat you in your own game. 


There is still a lot of room for new entrepreneurs to come into the ecommerce space and innovate.

If you do not have a clear revenue model in mind, it might be best for you to test out different models until you find one that suits you.

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