eCommerce revenue model

I’ve got a lot of respect for the ideas presented in author and entrepreneur Alexander Osterwalder’s Stanford University series on the business model canvas. As he points out (and as I try to remind my clients), “great products are becoming a commodity. It’s the combination between great products and a great business model that is going to keep you ahead of the competition in the coming decade.” (more…)

Creative Commons commercial use image by danielbroche

The e-commerce based revenue model helped businesses score record profits over the holiday season. Clearly, this is one revenue stream that entrepreneurs can’t afford to ignore. That said, startup executives need to think clearly about how this revenue model will work in conjunction with the rest of their business plan in order to entice investors.

• (Download our E-Commerce Based Revenue Financial Model. Automatically generate balance sheets and cash flow statements.)

The e-Commerce Revenue Model Opportunity

The numbers for eCommerce shopping over the holidays were staggering even before Boxing Day, according to Network World:

During the one-week period ended Dec. 18, online retail shoppers spent a record $6.3 billion. On four days of that week, the single-day e-commerce tally surpassed $1 billion dollars, according to web watcher comScore.

So far this season, consumers have spent nearly $32 billion online, which is a 15 percent increase compared to the corresponding days of last year’s November-December holiday season. The volume of sales is expected to slow as the holidays draw near and shoppers head for the malls.

For established brick-and-mortar companies, the e-Store has become an essential revenue source; for companies like Amazon and Apple (iTunes store), the online shopping cart is the most important way they make money. And during the holidays, there is an added benefit; since most entrepreneurs actually enjoy taking time off to spend with their families, letting e-Stores handle customers has obvious advantages. The revenue keeps rolling in even as you’re unwrapping gifts in your living room. (more…)