Analyze Your E-Business Model

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To develop a business structure, it is not necessary to write everything out in detail.

Don't make it too difficult for yourself. The most important thing you need to do is to study the business model you plan to work on.

There are several classifications of electrical contractors email list business.

For example, there are classic business models: B2C (business-to-consumer), B2B (business-to-business), C2B (consumer-to-business), C2C (consumer-to-consumer). And there are very young profit-making schemes: SaaS, white labels, drop shipping, subscription services, etc.

Today the Internet rules: stages of development of electronic business

Source: shutterstock.com

It is in your best interest to decide on the type of business as quickly as possible. This way you will have a clearer idea of ​​such an important parameter as the break-even point of the project.

Do a competitor analysis

Think about who your competitor is. This is not such a difficult task, considering that today you can go to any online store and study its assortment, product categories and target audience.

This analysis will help you assess the level of resources required to enter the business. This will help you understand what you need to sell and how you can do it better than your competitors.

Insights are important even if you're starting a small business.

Competitive analysis helps you identify strategies and key points that have worked for others. During your research, you should pay attention to the following:

What are the competitors' prices? What is the principle by which they set them?

Do their sites rank organically or do they invest in contextual advertising?

What are the best selling products?

How customer friendly are the product pages?

As a result, you will be able to roughly predict your chances of success. This strategy is good because it will protect you from pointless investments right at the beginning.

Decide what you will sell

This is the side of business that most often causes difficulties for new entrepreneurs. However, no one wants to make the mistake of spending a huge amount of time promoting a product that is doomed to failure.

To protect yourself from such risks, thoroughly study all the methods and techniques that help identify a promising product.

Let's talk about this in more detail.

Selling products via dropshipping

Many people choose dropshipping because it allows them to significantly reduce overhead costs. In addition, if you compare this business model with others, it turns out that dropshipping has a fairly low entry level into the business.

This option eliminates the need for you to place the goods in the warehouse. That is, your supplier himself ships the order to the client after he has placed it in your online store.

It's that simple.

And the most important thing is that you can choose a supplier from a huge number of options. They can be found on such sites:

AliExpress

Doba

MegaGoods

Wholesale 2B.

Spocket

SaleHoo

Wholesale Central.

We have listed above only some of the markets that allow you to work with a dropshipping seller. More information about dropshipping is given below.

You can sell dropshipping products through your own online store created on the Shopify platform. The most advanced way is to use the Oberlo app, which is especially effective if you plan to source products from AliExpress suppliers.

To ensure you haven't chosen an oversaturated niche, research the market using the following criteria:

Solving the problem of the target audience

To build your own customer base, figure out how to solve their problem. There are many ideas, but the worst one is to sell what everyone else is selling.

When introducing a new product to the market, it is important to have grounds for its competitiveness. If the product has no advantages, it will not be able to win its market share.

But if the product solves the customer's problem, then this guarantees its popularity among consumers.

Creating a unique product

Consumers must have a certain understanding of the brand. Therefore, it is very important to think through all the components by which the audience will distinguish your product from others.

The name of your business should reflect the essence of what your online store offers.

If the object is a tangible product, then be sure to identify the target audience that may be interested in it.

Also consider the impact of repeat customers on your profit growth.

Market of rapidly changing trends

The world is constantly changing, and with it, shopping habits are changing.

Brands are always looking to bring new trends to the market. If a previously unknown product takes hold, its demand curve should be calculated immediately.