Many companies have flourished with the freedom e-commerce gives them. These brands have combined classic business models with something new, making them innovative leaders in the field. If you’re not familiar with the core types of e-commerce models, you can check out our guide on 4 Key E-Commerce Business Models Explained for Beginners before diving into these examples.
1. LARQ – Self-Cleaning Water Bottle
LARQ introduced the first self-cleaning water bottle in 2018. UV-C technology is used in this reusable, rechargeable bottle to kill viruses and germs in water, whether it comes from a tap or a natural source.
With $1.7 million raised, the launch of LARQ was the greatest crowdfunded effort for a clean water venture. LARQ now provides 1% of its profits to efforts to provide safe drinking water to people all around the world.
Buyers were attracted to this reusable bottle because of its eco-friendly factors, while they can also save money skipping on single-use water bottles, but still enjoy a clean water vessel (without scrubbing it) every time. These unique factors have led to LARQ’s increased revenue by 400% year-over-year.
2. Beer Cartel – Subscription Service
Some ideas sell themselves.
Beer Cartel is Australia’s oldest beer subscription service, delivering expertly selected craft beers from all around the world to subscribers’ doorsteps every month.
They’ve attracted the curious and the aficionados by:
- Offering a one-of-a-kind assortment at a lower price than what can be found in stores
- Providing a variety of subscription choices for different appetites and budgets
3. Berlin Packaging – Hybrid Supplier
Berlin Packaging is trusted by Fortune 500 corporations as well as family-owned start-ups to source, develop, and distribute their containers and closures.
As a hybrid supplier, Berlin Packaging applies their experience to every level of the supply chain in order to improve efficiency and minimise costs for their customers.
Berlin Packaging is nearly 80 years old, yet it has maintained its competitive advantage by innovating at every turn. They maintained competitiveness by establishing an internet business model that allowed clients to purchase from a vast assortment of containers obtained from over 200 different partner vendors.
Customers can easily monitor their credit limits, balances, and past due sums since Berlin Packaging prioritised a solid connection between their site and ERP.
4. Atlanta Light Bulbs – B2B
Atlanta Light Bulbs is no stranger to innovative e-commerce. ALB launched their first e-commerce site in 1999, which gave them a huge head start on creating a unique site experience for their customers.
They have focused on adding more to their online platform that will set them apart from their competition, such as:
- Leveraging apps for their BigCommerce storefront as their market has transitioned to the millennial demographic
- Developing a mobile shopping app, which has boosted B2C sales but is also valued by commercial clients
- Introducing a “make an offer” function, allowing customers to specify a quantity and price before submitting an offer
Pricing guidelines are applied on the backend to calculate the lowest price Atlanta Light Bulbs can offer. Customers then receive:
- A message if their proposal is accepted so they can checkout immediately
- A counteroffer if the price is too low
5. Mountain Crest Gardens – Wholesaling
Mountain Crest Gardens was founded in the mid-90s as a family-owned and operated business in Northern California. When they relaunched their website in 2012, they experienced:
- A 400% increase in orders
- A 10x rise in revenue
Their unique edge? Artistically pleasing succulents.
User-generated content has helped organically amplify their plants and drive orders. Mountain Crest Gardens caters to a wide range of customers by offering:
- Individual succulents
- Wholesale options
- A subscription box
Selecting Your E-Commerce Business Model
We’ve talked about broader options for choosing an e-commerce business model, now let’s look at the specifics. Here are a few questions that will help you create a plan that will set your company apart.
The key here is honesty and research. Spend time learning about the market you’re targeting and be honest about the unique value you can bring to the space. For more insights on building a strong structure for your business, read our article on Business Model Structure & Key Properties Explained.
1. Who Is Your Customer?
- Who are you looking to serve?
- What do they expect from the type of product you plan to sell?
If you can understand their behaviours and patterns and uncover ways to enhance or save money, you’re more likely to succeed. Look for pain points in how things are currently done — this is where you, as an entrepreneur, can carve yourself a niche.
2. What Are You Capable Of?
- What do you know better than anyone else?
Build around your existing strengths and the elements that excite you. Be realistic about what you can do alone and what you’ll need to hire someone to help you with. Knowing your limitations can be difficult, but it will help you make better long-term decisions.
3. What Is Best for Your Product?
Depending on your product, different models will serve you better than others:
- If you’re making your own items, you might want to pursue wholesaling or subscriptions to cover production costs and break even faster.
- If you’re a distributor of other people’s goods, you’ll want to invest more in direct marketing and customer-acquisition efforts.
4. What Is Your Positioning?
- Do consumers understand what makes your product better?
- Are you competing on price, selection, or convenience?
From your backend processes, to warehousing, to marketing, to your website’s shopping experience — your unique value should be clear.
