Though the four most popular types of ecommerce business are mentioned above, there are actually several more specific definitions of ecommerce business models.

Retail ecommerce

Online retailing is the ‘simple’ business model of a company selling a product to the general public.

An example of this would be Snag, who ethically manufacture tights and other clothing products, which they then sell on their website directly to customers.

You don’t need to manufacture products to be an online retailer, however. You could simply source products from elsewhere and sell them on an ecommerce website with an appropriate markup.

White labelling

White labelling is common in the cosmetics, clothing, and food industries. It’s where products are produced in large quantities by a single company, which then licenses the products to other businesses. These businesses are then able to apply their own branding and markup before selling to the retail market through a website. 

A white labelling ecommerce business model can enable startups to launch quickly, allowing them to take advantage of emerging trends. It also greatly reduces the amount of upfront investment required, because the product development and manufacturing processes are already taken care of by the firm that licenses the product..

Subscription service

Online subscription services have become an increasingly popular ecommerce business model in recent years as consumers demand ever more flexible and cost-effective ways to purchase and use goods and services.

Media streaming services, alcoholic beverages, cleaning products, and even cars can now be purchased via online subscription services, with companies charging a recurring fee for use of their products.

Digital products such as online courses are especially suited to subscription service business models, but they’re equally as applicable to any regularly accessed, consumed, or replaced product.

Print-on-demand

Print-on-demand, also known as on-demand manufacturing, has similarities to dropshipping in that businesses don’t need to place an order for products from suppliers until a customer makes a purchase on their website.

Once the purchase has been made, the business can forward the details of the order to the third-party printing company which can then ship the item directly to a customer.

For creatives who love designing their own products, print-on-demand offers a simple and low-cost method of selling t-shirts, tote bags, mugs, posters, and anything else that can be printed.

Wholesale ecommerce

Online wholesaling is a business model where one business supplies goods in bulk to another, usually via an ecommerce platform that requires an account to access.

Wholesale ecommerce used to be an exclusively B2B activity, but some companies have diversified into the retail market as well. Whether B2B or B2C, a wholesaler will require a large space in which to store goods prior to sale.

Generally, the aim of online wholesalers is to sell large quantities of goods at reduced per-item prices to retailers, who then add a markup and sell on to the general public, either via their own website or physical stores.