Model 5 of 5 · Online business models
What you will accomplish in this stage
- Understand exactly what ecommerce is.
- Understand the difference between your own store and marketplaces.
- Learn how ecommerce profitability works.
- Estimate how much investment is needed to get started.
- Decide whether this model suits your profile and management capacity.
A model for selling products without geographical limits
On the previous page, we saw how a business website allows you to sell services and position yourself as a professional online. However, when your goal is to sell physical or digital products on a larger scale, ecommerce becomes a natural next step among the online business models.
Ecommerce is now one of the most important drivers of the digital economy. More and more people trust online shopping, creating real opportunities for entrepreneurs who want to build their own store and sell without relying exclusively on external marketplaces or a physical shop.
Because it is accessible, this model allows you to launch an online store with progressive investment, validate products, build your own brand and reach local, national and international customers.
In this guide, you will discover how this model works, who it really suits and its main variations.
What is ecommerce?
Definition
Ecommerce, also known as electronic commerce, is a business model based on buying and selling products or services online, using digital infrastructure to manage payments, orders and deliveries.
This model allows entrepreneurs and businesses to sell their products in a scalable way and reach customers beyond the physical limits of a traditional business.
How the different ecommerce models work
In ecommerce, there are several models for selling products online. Each one involves a different level of control, investment and dependence on external platforms.
Understanding these differences is essential when choosing the path that best suits your resources, objectives and entrepreneurial profile.
01
Your own online store (retail)
This model involves selling your own products, or products purchased from suppliers, through your own online store.
You directly manage the catalogue, prices, customer experience, inventory and shipping. In return, you have greater control over your brand, margins and relationship with buyers.
This is the model most closely aligned with a long-term business strategy.
02
Dropshipping
With dropshipping, you do not need to hold products in stock. Suppliers manage the inventory and ship to the end customer.
Your main role is to manage the store, marketing and customer service.
This model allows you to start with little investment, although it generally involves lower margins and less control over quality and delivery times.
03
Marketplaces: Amazon FBA and marketplace fulfilment services
In this model, you sell directly on marketplaces such as Amazon, including through its FBA system, benefiting from an existing customer base and a large volume of traffic.
These platforms can also handle storage, order preparation and shipping, which simplifies logistics and allows you to grow more quickly. In return, they charge commissions and fulfilment fees that reduce your margins and limit your control over your brand and customers.
Note
At Scale & Own, our learning journey focuses primarily on digital independence and the retail model with your own store, supported by stable sources of traffic such as SEO.
However, at certain stages, combining several models can also be coherent and complementary, for example by using marketplaces as an additional sales channel.
Benefits and limitations of each ecommerce model
| Model | Main benefits | Limitations and challenges |
|---|---|---|
| Your own online store | Full control over the brand, prices and customer experience. Greater potential profitability over the long term. Build your own digital asset. |
You must generate your own traffic. Investment in marketing, SEO or advertising. Results are generally progressive. |
| Dropshipping | Low initial investment. No inventory management. Allows you to validate products with less risk. |
Dependence on external suppliers. Less control over quality and delivery times. Profitability varies according to the product and competition. |
| Marketplaces | Immediate access to an existing audience. Easier to generate your first sales. Established infrastructure and trust. Possibility of developing your own brand, depending on the platform and strategy used. |
Sales commissions. Strong competition. Dependence on the platform for visibility and sales. Limited access to data and the direct customer relationship. |
Marketplaces and your own store both allow you to take advantage of market opportunities. However, your own store gives you greater freedom to create content, rank for specific searches and attract organic traffic from several channels. This can make it easier to identify and exploit opportunities beyond traditional sales platforms.
How to create and launch your ecommerce store
Launching an ecommerce store is not simply a matter of putting products online and waiting for sales. You need a solid structure that allows you to manage your store, process payments, organise orders and build a direct relationship with your customers.
The technical foundation: your own online store
With the own-store model, this structure is generally based on flexible, scalable tools such as WordPress, combined with specialist plugins such as WooCommerce, which can turn a website into a complete online store.
Unlike closed solutions such as Shopify, this approach gives you full control over your business: you do not depend on an external platform, you avoid commissions on every sale and you decide how your store evolves over time. In return, it requires greater initial involvement and the acquisition of basic technical skills, but offers much greater freedom and scalability over the long term.
A progressive path for building your business
If you want to learn how to create a website from scratch and then turn it into an online store, at Scale & Own we have designed a step-by-step journey to guide you through each stage.
Create your own website professionally. Learn how to build the technical and visual foundation of your store with WordPress and the right tools.
Attract free, qualified traffic through SEO. Once you have mastered the basics, turn your store into a steady source of customers without relying exclusively on advertising.
This progressive approach allows you to build your business on solid foundations, avoid unsustainable shortcuts and develop digital assets that grow with you over the long term.
How much does it cost to launch an ecommerce store?
As we saw on the page about online business models, launching an online project requires a minimum initial investment in infrastructure, tools, training and visibility. As a guide, this base budget is around $1,500 and is common to most of the online businesses we present.
For an ecommerce business with its own online store, specific costs related to selling physical products must be added to this foundation.
Additional costs specific to ecommerce with your own store
The main distinguishing factor is the initial inventory. Depending on the type of product, supplier and model chosen, this investment is generally between $3,000 and $5,000, although it can vary considerably:
- depending on whether you buy wholesale;
- whether there is a minimum order quantity;
- or whether you manufacture the items yourself.
You must also account for logistics costs:
- transport from the supplier to your warehouse or fulfilment centre;
- packaging and shipping materials;
- storage, whether your own or outsourced;
- shipping costs to the end customer;
- returns and replacement management.
There is no “single budget” for launching an ecommerce store because costs vary according to the product, supplier, country, logistics model and your traffic strategy (SEO, advertising or both).
What we can do, however, is help you make a decision based on real figures. The ecommerce profitability calculator below allows you to estimate the actual net profit per order, taking taxes, logistics costs, returns and CAC (customer acquisition cost) into account.
Scale & Own tool
Advanced ecommerce profitability calculator
Compare the actual profitability of your own store with selling on a marketplace. Shared data applies to both tabs: only information specific to each model changes.
Advanced ecommerce profitability calculator
Compare the real profitability of your own store with selling on a marketplace. Shared figures apply to both tabs.
The comparison applies the same price, product and volume to both models. This calculator provides an indicative estimate based on the data you enter; it does not replace an accounting analysis or professional advice.
Common mistakes when starting in ecommerce
When launching an ecommerce project, many entrepreneurs make mistakes that are not related to technology, but to how they approach the business from the outset.
Identifying these mistakes in time can make the difference between giving up after a few months and building a solid project.
Failing to validate the niche before investing
One of the most common mistakes is buying products or creating a store without first analysing actual demand, competition and market potential.
Investing without validation often results in unsold inventory and unnecessary losses.
Creating an unprofessional store
A slow, poorly designed store that does not inspire trust causes visitors to leave immediately.
The perception of quality directly influences the purchasing decision, especially when the customer does not know your brand.
Neglecting SEO and visibility
Without qualified traffic, there are no sales. Many entrepreneurs rely only on advertising or expect results without working on their search visibility.
Building organic visibility is one of the foundations of sustainable ecommerce.
Failing to calculate actual costs correctly
Ignoring expenses such as logistics, commissions, returns, tools or taxes distorts the real profitability of the business.
A viable project is based on clear figures and well-defined margins.
Underestimating the initial budget
Launching an online store requires resources for marketing, testing, optimisation and, in some cases, inventory.
Starting without a financial cushion generally limits growth and creates unnecessary pressure.
Launch your ecommerce business today
Throughout this page, we have seen that there are different ways to approach ecommerce. At Scale & Own, we place particular emphasis on your own store because of the freedom it offers to develop an SEO strategy and build a long-term digital asset.
A well-built ecommerce business not only allows you to master the logic of online selling, but also creates a solid foundation for diversifying your income with other online business models in the future.
It is a long-term investment that gives you independence and greater control over your brand, your data, the customer experience and your processes.
If you think ecommerce is right for you, start your learning journey now by learning how to create your own website step by step.
Otherwise, explore all the online business models we offer to find the one that suits you best.
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Create your website with WordPress
- What is ecommerce?
- Ecommerce models
- How to create and launch your store
- How much does it cost?
- Common mistakes
- Is it right for you?
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