The 3 Keys to E-commerce Success

By January 25, 2021January 26th, 2021No Comments

What Is E-commerce?

E-commerce (electronic commerce) is the buying and selling of goods or services over the Internet. It can also describe any kind of commercial transactions done online.

Before setting up your e-commerce website, you have to clarify the following things:

Define your type of business:

  • B2B (Business-to-Business)
  • B2C (Business-to-Consumer)
  • C2C (Consumer-to-Consumer)
  • C2B (Consumer-to-Business)

Choose your business model:

  • Drop Shipping
  • Wholesale and Warehousing
  • Private Label and Manufacturing
  • White Label
  • Subscription E-commerce

Determine the type of goods you want to sell:

  • Single Product Model 
  • Single Category
  • Multiple Category


Define the Type of Business


B2B (Business-to-Business)

B2B is the perfect business type for you if you want to sell goods or services to other businesses. They could be raw materials, finished products, services, or consultations. Some examples are GPS tracking devices for truck fleet management, software for project management, car parts for manufacturing companies, and so on. If you want to sell to other companies and don’t want to deal with consumers, B2B is for you.


B2C (Business-to-Consumer)

Next is B2C. This is all about selling to end consumers. They’re the people who end up using the finished product or service. The simplest way to explain this is by picturing people buying products from a store. Once they get their products, they use them for themselves. They don’t think about changing the product and selling it to other people. Now, if they’re the kind of customers you want to interact with, then B2C is for you.

C2C (Consumer-to-Consumer)

This third is for consumers who sell their own used or handmade products to other consumers. If you’ve been on Etsy (where people post their items for sale), then you’re familiar with this type of business. There’s usually a web-service mediator between the two consumers that would allow them to perform the transactions. 

C2B (Consumer-to-Business)

The fourth type of business is C2B (the opposite of B2C). Consumer-to-business means individuals provide their own products or services to companies. An example of this is Shutterstock. Companies rely on websites like Shutterstock to get their user photos. Another example is Upwork, where freelancers provide a wide range of services to various businesses.


Choose a Business Model

Next, you need to choose a business model that will tackle your inventory management and commodity procurement needs.

Drop Shipping

The advantage of the drop shipping model is that you do not have to bear the pressure of product inventory and management. You won’t even be responsible for product packaging and shipment. You’ll only be responsible for displaying products to customers.

Once the customer places an order, you’ll transfer the information to the supplier responsible for packaging and shipping.

However, you should take note of this… if the supplier is slow to ship and the quality of the product is poor, you’re the one who’s going to receive negative reviews.


Wholesale and Warehousing

The wholesale and warehousing model requires a lot of investment in the initial stage. It’s because you need to pay for inventory, inventory management, shipping, and logistics. Unlike drop shipping, this model requires an investment in warehousing space and human resources management.

Private Label and Manufacturing

Suppose you have a unique idea for a product but don’t have enough funds to build your own factory and brand. In that case, you can find a manufacturer to produce the product for you. This is an excellent model if you truly have a unique product that you could sell to millions of people. The challenge is validating your idea to your potential manufacturer. Because there’s a lot of financial investment involved. Therefore, you have to prove that it’s worth it to produce your product.


Also, you have to ask yourself whether you want to partner with a domestic manufacturer or find a manufacturer overseas. Labor costs are cheaper in countries like China, India, or Taiwan. However, you might encounter problems such as distance, language, and cultural differences. Not to mention that manufacturing a product from inception can take a long time because you have to deal with prototyping, sampling, refining, and production.

Once you complete that process, you can now sell your products to customers online. Regarding shipping, you can coordinate with your manufacturer. Negotiate whether it’s going to be you or them who will be handling the shipping services. Another alternative is hiring a third party to do the shipping for you.


White Label

If you don’t have a unique idea for a product, you can try the white label model. White-label products refer to generic products that are sold to multiple retailers. After the contract is completed, you only need to add the product’s own trademark and packaging to start selling them.

But note that most manufacturers have restrictions on the minimum order quantity. Because of the unpredictability of market demand, slow-moving inventory will be one of the risks you have to anticipate.

Subscription E-commerce

With this model, you regularly send goods to customers and charge them based on the agreed-upon subscription. It can be weekly, monthly, yearly, and so on. Under the subscription model, the financial advantage is that you can better grasp the cash flow. And in terms of marketing, it is easier to encourage customers to purchase more and encourage their relatives and friends to subscribe.

The challenge of this model lies in the selection of products and competition in niche markets. This is because the subscription-based industries are mostly health and beauty, beauty, fashion, and food. There are a few successful cases in other industries.

An example of this subscription model is Trifecta Nutrition. They offer meal plans that include vegan, paleo, keto, and more. Customers can choose their meal plans and even customize them to suit their dietary needs. Then they have to pick a subscription plan, whether it’s weekly, biweekly, or monthly. This model is effective because people consume food on a regular basis. Meaning, as long as the meal plans are helping the customers eat better and save time, they’ll continue their subscription.

Determine the type of goods


Single Product Model

This model only focuses on one product. The advantage of that is it has your undivided attention. So if you’re able to offer a great product to a wide range of customers, you’re likely to sell a lot. What makes up a great product is having high demand and low competition. In short, unique and wanted by the market.

The downside is that if your product flops, you won’t have other products that would lessen the blow of your loss. Therefore, you need to do your market research first.

Single Category 

If you want to specialize in a particular category of products, then the single category model is your best choice. By providing a small selection of products, you can quickly build credibility and reputation in a niche market. And if you’re just starting out, it’s best to be ultra-specific about your area of focus. Then, you can extend your products bit by bit, as the sales keep increasing. 

For example, Crocs initially started selling boating shoes. They then gradually expanded to include casual flip flops, shirts, backpacks, and other merchandise categories.

Multiple Category

The multiple category model is more suitable for brands that have succeeded in a single category model and are ready to expand their product lines.

The challenges in this product model are product procurement, inventory management, and logistics. Imagine you have 10 products from different suppliers, and their business models are different. Keeping track of your products can be difficult, let alone communicating effectively with your suppliers. But if you can manage it properly, the multiple category model will help you entice your customers to your new products. And over time, the expansion of your e-commerce business will be easier.


Seeing this, you may already know which type of e-commerce you want to operate. Regardless of whether you sell through your own website or third-party platforms, you must include the following key points to increase sales:

Key to Success 1:
Understand Your Target Market, Product Development, and Competitors


Know Your Target Market

In-depth analysis and understanding of your target market is the unbeaten rule for success in any business.

Consumers of different generations will use different ways to absorb information. Therefore, you have to design your e-commerce business in a way that accurately meets the needs and habits of your target market. This is a crucial key to digital sales.

Consider your products and the consumer groups that you expect to attract. Study their consumption habits in depth. Then, based on your research, create the best strategies you can apply online. And, of course, test and adapt accordingly, as you get more data.

Understand Product Development

Wherever you’re selling, you must conduct an in-depth investigation of the local market.

Suppose you want to sell in the US market. You can browse Amazon or eBay to know which products are selling well. Start with products that are similar to yours. You can look at the price, ratings, reviews, shipping, etc. And based on all of that, you can get an idea whether your products have sales potential.

Collecting first-hand information will help you understand the future development of your product.

You must also understand the different market levels: high-priced, medium-priced, and low-priced. Effective use of this information will help you create more unique brands and products that satisfy your target customers’ needs.

Know Your Competitors

Using online search tools such as Google, SpyFu, and Ahrefs, you can analyze your products’ potential competitors. Going a step further, you can use “Google Search Trends” and “Google Keyword Planner” to analyze your e-commerce products. Searching for trends allows you to see whether your product’s popularity in the market is in an upward or downward trend.


Key to Success 2:
Provide Excellent Customer Service


Keep online shopping simple and fast

Keep it simple. Allow your customers to quickly browse through your products. Why? Because having a long and complicated purchase process will discourage them from buying. You have to make it as easy as possible for them to say “yes.”

Another thing you should consider is a web feature that allows customers to save their personal payment information. This simplifies their future shopping experience by just pressing a button.


Provide great customer experience

Creating a great customer experience is essential to growing your e-commerce business.

When customers shop online, they need to have a sense of security before buying — guarantees from sellers. You can give them this guarantee by telling them they can return it and get their money back if it doesn’t meet their expectations.

Whenever they return your products, make sure that you ask them why. Ask for their feedback. This will help your product, customer service, and your business. Do this so you can improve your business and have fewer product returns.


Provide opportunities for consumers to leave reviews

One of the benefits of online shopping for consumers is that they can read other people’s reviews.

Giving consumers space to comment on products is not only the key to building user experience but also a way to increase purchase motivation.


Keep in touch with buyers

As mentioned above, good reviews motivate consumers to buy. Therefore, after they make their purchases, keep in touch with them as much as possible. (Not in an annoying way, of course.) Ask for their suggestions or feedback on your products. This will let them know that you value their consumer experience.


Key to Success 3:
Effective Brand Promotion


Use blogs and social media to promote

Introducing your brand using blogs and social media is one of the best ways to promote your products or services.

You need to write social media posts and blog posts from your consumers’ perspective. Think about all the questions they may have about your product. Then address each issue separately.


Invite influential people to help

Inviting influencers can play a huge promotional role in your sales. They are called “influencers” for a reason. They have a lot of followers, and people constantly watch what they’re promoting.

Once you have determined your target market, you can start looking for relevant influencers. They can be bloggers, YouTubers, celebrities, etc.

But how do you invite them?

One method you can use is to provide a free sample of the product before it’s released in public. This will help them assess your product. If it’s good and the product reviewer likes it, they’ll share their positive reviews with their followers.


Develop public relations

Attracting positive media attention is also an effective way to increase your online sales. The development and execution of well-performed public relations can expand your brand awareness. Through the media, you’ll be able to share your brand with a broader audience. And then, the media’s attention will drive traffic to your e-commerce business.

To put it simply, the key to a successful e-commerce business is understanding its nature, your target audience, and executing a solid strategy based on thorough marketing research.



In the past ten years, consumers’ shopping preferences and tendencies have undergone tremendous changes. For companies to continue generating more revenue, they need to know how to market and sell online.

With this article, you now have a clearer understanding of what e-commerce is. What kind of model you should use to run your e-commerce shopping website, and the 3 keys to successfully operating your e-commerce brand.

No matter what kind of e-commerce business you want to take part in, you must first have a sound marketing strategy.

TransBiz’s passion is to help sellers scale their businesses online.

If you’re looking for a partner to guide you through your customer journey, especially in the digital marketing space, contact us by clicking here.

Juls Macalintal

Juls Macalintal

Juls is a direct-response copywriter who specializes in email marketing, conversion funnels, sales pages, and case studies. In his free time, he likes to watch cat videos and study stand-up comedy.

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