Starting a business has its own many enormous advantages, but at the same time includes many choices waiting for you to make. After coming up with an idea, getting a name for your brand, and choosing a platform to operate, you need to decide what business model to follow.
In this article, we would like to show you five major choices that you can consider when starting everything. Depending on products and cost structure, we hope you will find the most suitable one for your business.
Known as the most economical option business model, dropshipping has attracted thousands of entrepreneurs who want to make startup costs as small as possible. Besides, it is also ideal for those who don’t have or manage inventory.
Streamline Sales: As you have another one fulfill the tasks of picking, packing, and delivering products, you can run your business from any place you like.
Low Margins: As you must pay for the drop ship partners, the profit margins will be slim, around 20%. For a decent profit, you had better sell as much volume as possible.
Do you have a unique idea? Are you confident that people will buy your products once they are published? If the answer is Yes, then manufacturing is most suitable for you.
Manufacturing is divided into two lenses: private label and white label. The former means that products are produced and only sold under a business name, while the latter means that products are produced by one manufacturer but sold by many retailers under their names.
Overwhelming Workload: You need to prototype, sample, refine, and produce. If you aim at using an overseas manufacturer, other barriers will arise, like language, culture, distance, and so on...
Wholesale is a good choice if you want your products to be diverse.
Product Differentiation: As mentioned above, established products can be both beneficial and detrimental for your business. Many other retailers sell the same products as you, so you need to find a way to distinguish yourself from the crowd. Only by that will customers purchase your products, not other people’s.
Many people enjoy the hobby of making products, from accessories and clothes to more complicated things like hand-made beauty products.
Makers exist to serve this kind of people. If you have your own unique ideas, good at producing goods, and have available resources, you had better try this business model once in your life.
Quality Control: Because it’s you who produces, your products are closely controlled and completely live up to your expectations. If there is something that customers aren’t satisfied with, you can quickly fix or adjust it.
In general, print-on-demand is when you make a product that features your designs then post it on Shopify. If a customer finds your item interesting and wants to make an order, a third-party service will pack and ship the order for you.
Limited Customization: What aspects could be customized depends largely on vendors and products. When finding which products to customize, you should think about base costs, available sizes, and techniques.