It’s easy to think of ecommerce marketing in a broad sense. It’s nothing more than marketing ecommerce businesses. Right? Not really. Ecommerce marketing is a highly complex enterprise that can actually be quite specific. For instance, how an organization goes about marketing is influenced by ecommerce revenue models.
There isn’t just one way to make money in ecommerce. As explained by Investopedia, the broad concept of ecommerce is supported by multiple revenue models. Those revenue models are:
- Dropshipping
- White labeling
- Private labeling
- Wholesaling
- Subscription
Private labeling is arguably the most common form of ecommerce. It is the revenue model under which most ecommerce marketing operates.
Dropshipping and Marketing
Dropshipping is a business model through which an ecommerce operator sells products offered by either a wholesaler or other retailers. But rather than purchasing inventory and handling shipping in-house, the operator pays the wholesaler to handle shipping. The operator never physically touches inventory.
Ecommerce marketing under this revenue model suggests focusing heavily on the ecommerce operator’s brand. It’s about convincing consumers to purchase from that operator rather than a competitor. The actual dropshipping model is never mentioned. Otherwise, it could scare consumers away.
White and Private Labeling
The white labeling revenue model involves purchasing products manufactured generically by others. The ecommerce operator then puts its own label on those products. Private labeling is just the opposite. An ecommerce operator working under the private labeling model is selling branded products from other manufacturers. He is promoting those brands accordingly.
Ecommerce marketing between the two differs based on brand focus. A white label operator wants to promote his own brand. A private label operator is promoting other brands as well as his own.
Private label selling has a big advantage in terms of brand recognition. When sellers concentrate on well-known and long-established brands, products almost sell themselves. The downside is plenty of competition. On the other hand, white label operators have to work harder to establish their brands.
Wholesaling and Marketing
The wholesaling model involves selling bulk inventory at wholesale prices. A wholesaler’s customers are typically retailers who purchase at bulk prices then mark up the products for retail sale. Ecommerce marketing under this model is decidedly different because the ecommerce operator is targeting other businesses rather than retail customers.
A wholesaler’s main job is to convince retailers to use them as their primary source from bulk products. A wholesaler needs to set itself apart from the competition, whether it’s by price, service, shipping options, etc.
It is also worth noting that wholesalers target commercial buyers. Theirs is a business-to-business enterprise, and the businesses with whom they work employ people tasked with buying inventory. So wholesalers have to be cognizant of those buyers and what makes them tick. Their ecommerce marketing needs to be tailored accordingly.
Ecommerce Subscriptions
Last but not least is the subscription model. This revenue model relies on subscription products that are purchased by repeat customers time and again. For example, consider a whole foods and supplement provider offering supplement subscriptions to customers. The same customers purchase the same supplements month after month.
Ecommerce marketing under the subscription model is all about enticing customers to forego one-off purchases in favor of subscriptions. It’s an entirely different mindset.
Ecommerce marketing is a highly specialized form of digital marketing. It requires reaching an audience based on revenue model. Once an operator understands how marketing relates to his or her revenue model, the process of reaching the target audience can begin in earnest. For more information about how we do it at Webtek, feel free to contact us.
