In today’s world, internet has become an integral part of how consumers make purchasing decisions. In order to be successful as a retailer, an ecommerce store should adapt a successful business model that can withstand all your store needs efficiently.
There are a number of business models available in the market. And every business model has its own advantages and disadvantages. Hence, it is crucial for you to choose one aligned with your store’s requirement that include an accurate inventory management flow, easy order fulfillment process, marketplace integration and much more.
An important aspect of managing a online store is the ability to manage your inventory. Lack of management can lead to more use of your resources and capital. Managing your inventory manually may lead to errors and welcome scenarios like stock-outs and over-selling.
Proper inventory management can help eliminate lost sales due to out-of-stocks and reduce the expense associated with carrying too much inventory.
When choosing a business model for your site, you should ensure that it undertakes a proper inventory management flow. Your business model should be open to the following functions:
- Easily organize and keep track of inventory.
- Never run out of stock without warnings and reports.
- Cloud access feature lets staff access remotely.
- Easy installation and ready to use in just minutes.
- Monitor and report stock levels, costs and averages.
- View inventory levels by location, category or overall.
- Allow real-time product history showing when items were received or sold.
Marketplace are platforms that enables large number of fragmented base of buyers and sellers to discover price and transact with one another in an environment that is efficient, transparent and trusted. Hence, it becomes difficult for owners to execute because they require adequate and simultaneous liquidity on the buyer and seller side.
Hence, it is crucial for you to select a marketplace business model that open to the following functions:
Solution to generate enough buyers and sellers and an effective price discovery mechanism.
Ensures transparency by applying same rules to all participants, because buyers and sellers know who they are dealing with.
Include features such as buyer and seller ratings, reviews, and integrity.
Outsource Order Fulfillment
To organize a smooth order fulfillment is every online business owners dream, but to manage it can be real daunting task at times.
Unorganized order fulfillment can lead to delay in shipment which in turn leads to delay in delivery of the product to your high-end customers.
The more you can automate goods deliveries and systems updates, the more profitable your business will be. Spending less time on admin means you can utilize more time on tasks like stock selection, marketing and customer satisfaction.
Automating fulfillment process is a key driver making a good business a great business, hence your business model should ease your order fulfillment process allowing you with the following functions:
Integrate with multiple carriers globally.
Enjoy full print, pick, pack and ship functionality.
Get the flexibility of now, later and partial fulfillment.
Update accounts and inventory automatically, once product shipped.
Allow real-time tracking information to customers.
If you are looking for an easy way to get into ecommerce business then Drop shipping is the best choice. But have you ever imagined a wrong drop shipment model can lead to a real nightmare like wrong products shipped, delay in shipment, which in turn may lead to high ratio of returns from your unsatisfied customers.
In drop shipment, you set up a store and whenever an order comes in, you simply contact the supplier. They pack up the item and ship it to your customer, and you keep the profit. All you need to do is just sit back and watch the money roll in. You never even have to spend time or money keeping and tracking physical inventory.
This sounds great in theory. So, while selecting a drop shipment business model, you should ensure that it has is open to the following functions:
- Post near real-time inventory updates to your store. Sync with your 3rd party fulfillment and drop ship suppliers using a variety of methods including email, FTP, URL, API, or XML integrations
- Automatically route orders to the right vendors, intelligently
- Immediately update your shopping cart with shipment tracking numbers as soon as you get them
Keeping these concepts in mind, and a bit of research, you can confidently find an appropriate business model for your ecommerce store that will meet both your business and customers needs.
Allow real-time product history showing when items were received or sold.
Savio Fernandes is a writer who influences. Writing for over three years at Orderhive, he is currently focused in offering eCommerce and retail solutions for start-ups and medium business owners.
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