Types of E-commerce Stores

Once you’ve determined which hosting option suits your needs best, it’s time to figure out which type of e-commerce store you want to create.

1. Individual Brand E-commerce Stores

There are 1.5 million online individual retailers in the US alone.

An individual brand e-commerce store is a great option if you want to create a unique shopping experience for your customers.

This type of store allows you to control the look, feel, and functionality of your shop, which gives you more flexibility to create the exact customer experience you want.

You also have complete ownership of all the data collected on your site, including customer information, which can give you a competitive advantage over larger e-commerce stores.

However, setting up and managing an individual brand e-commerce store can be more difficult than using a hosted platform like Shopify. You’ll need to develop or purchase your shopping cart software, set up payment processing, and manage your hosting and security.

Individual brand e-commerce stores are a good option if you want to maintain your brand’s unique identity and have more flexibility to create the exact customer experience you want.

If you’re just looking to get started quickly and don’t want to deal with the technical aspects of setting up an e-commerce store, you may want to consider a marketplace or online retail option.

2. Online Retailers

Online retailers are websites that sell products directly to consumers. The most well-known online retailer is Amazon, which sells a wide variety of items. Threr are 1.3 million sellers joined Amazon.

Online retailers allow you to sell your products in their existing stores, and in return, they take a commission on each sale.

This type of e-commerce platform is good for businesses that want to start selling products quickly and easily without having to set up their store.

It can also be a great option if you want to reach a large audience and don’t have the time or resources to create your e-commerce store.

However, you’ll often need to negotiate wholesale pricing and commit to the ongoing production of your products.

If your business isn’t ready to scale up, this might not be the best option for you.

3. Marketplaces

If you want to start selling products but don’t want to set up your store, then consider using a third-party marketplace.

These platforms allow you to sell products without having to worry about setting up and maintaining your shop.

Some of the most popular marketplaces include Amazon, eBay, and Etsy.

There are 3.2 million businesses that sell via Amazon.

The downside of online marketplaces is you won’t have a direct relationship with your customers, which means you won’t be able to control the customer experience or offer special promotions.

Additionally, any customer data collected will be owned by the marketplace, not you. This can lead to lost opportunities for building repeat business or using data to drive advertising campaigns.

That said, marketplaces can be used as a supplement to an existing e-commerce store. For example, you may want to sell your product through your website but also offer it on Amazon or eBay.