The Four Types Of Successful Online Retailers

The Four Types Of Successful Online Retailers

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The impact of a global pandemic on the world was experienced the most by businesses. But like all clouds have a silver lining, the pandemic also had one. 

Months of long lockdowns and home quarantines paved the way for an increase in the number of online retailers offering a plethora of services to whoever may be requiring it. 

If you have a keen eye towards the fashion industry, you’d have noticed so many retail clothing stores popping up left and right. Right from sporting brands to new apparel stores, everything is growing rapidly. Online shoe stores had a new fan following built overnight.

But retail clothing stores and online shoe shops were just one of many services. 

Now all the products/services from all businesses that could be traded for money have a website built for them. 

So what kinds of retailers can make the most of the situation with their unique business model. Let us get you introduced to top retailers that can turn a fair profit in the days of the internet and online shopping.

Business-to-Business (B2B)

A Business to Business (B2B) model is one in which one business sells its product or services directly to another company. 

The business that buys services can make purchases for the whole corporation or a specific department or branch depending on the service quality and the demand. 

A B2B transaction will usually happen somewhere in the middle of a supply chain, where one company will buy their raw materials in bulk from another company to be used in their manufacturing process.

A B2B model has its fair share of benefits. The biggest one is that a B2B business is comparatively easier to scale. As you are dealing in bulk orders, increasing your orders drastically is something that will be done on a routine basis. 

B2B models also allow more effectiveness and productivity. Since most of your clients will be firms, your demand will increase majorly through referrals and word of mouth. Hence, the majority of your effort can be diverted towards the product rather than looking for new customers. 

If you own online retail clothing stores, it becomes more convenient to manage and run a B2B business. Apart from this, this business model also allows improved analytics capabilities and a better customer-centric experience with better service and engagement.

Business-to-Consumer (B2C)

Business-to-Consumer (B2C)

Business-to-Consumer (B2C) describes the process of selling services and products by a business directly to a consumer. The consumers are the end-users of the product or service.

Most online companies that we see every day can be referred to as B2C companies. The business models these companies have been built around selling directly to the consumer. A B2C model does not rely on the presence of a middle-man who will interact with both the buyer and the seller and facilitate the transport of goods in exchange for a small share of the profits. 

B2C is essential for the organic growth of a company. 

The internet has built a great pathway for companies to gain growth through B2C. Various advantages come to B2C companies because of this. 

Online interaction with consumers increases the customer base of a company. Signing up consumers improves customer interactions and relations. It improves the SEO of businesses, therefore, improving the scope of gaining new customers. 

Apart from this, B2C also allows businesses to offer lower prices to the buyer because of the removal of stores and middlemen who might shave off a chunk of the profits. B2C also allows improved accessibility, a better market reach, and improved communication with the buyer.

Direct-to-Consumer (D2C)

D2C stands for Direct-to-Customer. It is a business model in which any entity that offers a service or a product can do so directly to the customer. This is usually done through a simple website in most cases. 

The major benefit of D2C is the elimination of a middle man who works as a medium to connect the consumer and the manufacturer. 

The manufacturer can be directly contacted by the consumer who wishes for the desired service and hence, has a more satisfactory experience by communicating with the base service provider.

D2C is also more beneficial for the manufacturer as the removal of a middle platform creates a bigger profit margin and better feedback from the consumer as they are being directly contacted. 

Improved communication also allows the manufacturer to address queries and complaints more promptly and adapt accordingly. The main challenge in this form of business is usually the limited reach that a solo service provider has. 

The presence of a middle man can create pathways for improved reach into the market as well as pre-built reputations. But this problem is easily eradicated in today’s times as many people who offer independent products or services build a new consumer base through social media or by hiring marketing managers for improving the reach of their product through the internet.



Dropshipping is a new form of business model that has gained a lot of considerable traction in modern times. 

In this model, the seller does not hold any product directly. When a product is bought from the seller, the seller directly ships the product from the manufacturer to the consumer. As a result, the seller is only involved in coordinating the whole process and does not require to keep the complete inventory of the products in question.

Dropshipping has a lot of benefits to its name. The biggest advantage is that it requires almost no initial investment. 

The problems faced by most retailers involving large sums of capital do not hold back the business as the most needed for this model is a phone and a laptop to coordinate the process. 

Another advantage is that this model is relatively easy to manage. 

In dropshipping, you don’t need to worry about storage, packing, tracking, handling, and managing stock levels. Dropshipping also allows flexible locations to work, and ease in testing new markets. It also allows a large selection of products to be sold and is very comfortable when taking large orders.


In today’s age of startups and side hustles, an online retailer is someone who is doing something that will be a great benefit in the future.

Now that you have an idea of the various business models that can be followed, you can choose the one that suits your requirements and situation. 

You are now one step closer to creating your own online business. With an idea of your chosen business model, you can make all further decisions according to your plans.

If you want to scale your online fashion business or launch a clothing store, you can start by connecting with Fashinza to source your clothes quickly and easily. We’ll provide you with adequate resources to scale your brand.


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