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Remember the Five Fundamental Ecommerce Business Models? Let’s do a quick recap.

Some of you may ask then: what about other popular buzz words like dropshipping and FBA? Are they also business models which we can follow?

Let us clarify. Both above mentioned are not e-commerce business models, but rather SERVICES provided to e-commerce business owners to help them run their businesses more smoothly.

Dropshipping is a service provided by some suppliers where they will ship their products directly to the buyer. They do not require payment until the product is sold, so you pay the supplier after the buyer pays you. Meanwhile, FBA, or Fulfillment by Amazon, is a service provided by Amazon.com where they provide their own product storage, handling, and shipping services to process orders for other companies.

For sellers with limited time, these services solve a key problem, but they don’t in themselves provide any base to build a business on. Consumers won’t buy from you just because you use drop shipping or FBA!

Clearer now? See you soon!

Check out the series on the 5 Fundamental Ecommerce Business Models Posts Here:

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