eCommerce business growth

Your goal as a small business is to make money, as it is the goal for any business of any size. Most companies care about their eCommerce business growth, and for this, they need to be aware of their customers and give back to the community. Without a sustainable model for making more money, a company will not survive – it’s basic math!

Drive Business Growth

Revenue models are going to help you to better drive eCommerce business growth. These are the means by which a business plan can make more money, and it can be fairly complex or it can be basic. On this plan, you’ll take into consideration your manufacturing, purchasing, marketing, distribution, and other costs. All of these considerations will be marked until your business arrives at a profit. It’s the best way to look at the revenue structure of your business, and there are a variety of common business revenue models for eCommerce business growth. The most common ones include:

  1. Manufacturer. Creating a product with raw materials or assembling components to create a product is the goal for a manufacturer.
  2. Distributor. Distributors work to purchase products from the manufacturer and sell them to a wholesaler. The distributor handles passively received orders and promotes products to find new buyers.
  3. Wholesaler. A wholesaler will work closely with eCommerce retailers to ensure that their needs are accommodated. They’ll buy bulk products at discount prices, fulfilling orders as well as they can.
  4. Retailers. Purchasing from wholesalers and distributors, retailers will then sell products to the public.
  5. Franchise. This model has an entrepreneur paying for the rights to sell a product under the name of a franchise.


Five Common eCommerce Revenue Models

  • Sales Revenue. Profits are gained by selling products or providing services. This is alongside a brick and mortar business working online. Any business that sells online is following a sales revenue model, and this tends to be the basic way to earn money, even if there are more streams of income happening in that moment.
  • Advertising Revenue. Right now, the options for advertising as a business are pretty endless. You can get online with media sites and pay for advertising with pay-per-click, or you can choose to utilize your social media and advertising for free. These are the more palatable options for small businesses given they want to earn money, not spend it!
  • Subscription Revenue. A company offering subscriptions is a popular one. It goes beyond streaming subscriptions like Netflix and includes things like Hello Fresh and Gousto. If you can offer something for people to enjoy for a recurring monthly fee, you’re going to better ensure that you have a stream of customers coming in.
  • Transaction Fee Revenue. For every time your customers make a transaction on your platform, you can do a transaction fee and earn money that way. Fees aren’t much, but if you have a lot of customers it soon adds up!
  • Affiliate Revenue. This model relies on influencers on social media to promote and sell their product. The concept is based on sharing revenues and it is a very attractive model to use.


Whichever revenue model you choose, you need to understand both the customers you have and their expectations of you. Look at your current resources and find the realistic model that works for you. ShipJoy is here to help your eCommerce store scale it’s business through order fulfillment solutions.