What model does Shopify belong to? How many models are there?

There are many e-commerce platforms now. Shopify is a business platform where anyone can open an online store and sell their products. Merchants can also sell their products through Shopify POS. Now let's introduce what Shopify is?

What model does Shopify belong to?

1. Drop shipping

It is also called the "drop shipping model". Simply put, it is mainly about traffic, not inventory. After the customer places an order, the product is delivered by the supplier from the factory or warehouse. The most typical approach is to build a website with Shopify + select products with Obelro + promote on Facebook.

It originated from some foreign Affiliate communities and some senior Internet players who are good at marketing promotion and traffic operation. They are very familiar with the habits of overseas consumers and various Internet promotion channels and tools. Through their understanding of Internet users, they have also derived a very rich product selection and marketing strategy. Advantages: low threshold, no need to own product supply chain, can sell anyone's products, no need to stock up, no need to ship, fast order placement, fast volume growth.

Disadvantages: Endlessly changing products, no control over product quality, product packaging, and logistics speed, too high reliance on Facebook advertising, no customer accumulation, repurchase rate, and brand sedimentation.

But this model is very popular at present, it can quickly increase the volume, and it is also a simple way to make quick money. If the seller does not have a supply chain, he can quickly start his own independent website in this way.

2. Distribution Model

Grocery store is a typical independent website with the largest base. This model mainly relies on website groups, account groups, and product groups to obtain a large amount of information gap and earn intermediate profits.

Many of the current best-selling independent websites are built in this way. This kind of team is also very simple, with 1-2 people on each website, and they select and test products every day. The threshold is relatively low and it is easy to copy. Newbies can use it to practice and avoid being scared by the complicated gameplay of independent websites.

2. Vertical Boutique B2C

First of all, the average order value of these categories is high enough, and the production costs abroad are also very high, so the advantages and profit margins of our local sellers come into play.

High average order value + low purchase price = high profit.

Therefore, when the product profit is high, our advertising budget will increase accordingly, and the order rate will also increase accordingly.

These products are professional products that target specific groups of people with demand, unlike fast-moving consumer goods that are often consumed on impulse. Therefore, in this case, Google keyword ads become the first choice for sellers. Because search means demand, when users actively look for this keyword, it means that they have a demand for this product.

3. Brand Model

The brand independent station model is more suitable for maker teams with their own product development capabilities or businesses that have transformed from factories. For technology categories, the path of new product crowdfunding + brand independent station sales is a path that has been proven to be successful. For fashion products, social media and celebrity marketing are important marketing fulcrums that can be relied on.

This model is mainly suitable for sellers who want long-term development. This approach requires very in-depth research on market research and products, long-term planning, and sufficient patience and perseverance. Once a breakthrough is made, it will bring long-term benefits to the entire category line or brand.

The typical feature of this approach is that it has a high repurchase rate and does not require a large amount of marketing expenses to maintain sales in the later stages.

To sum up, we know that Shopify has three models, namely the drop shipping model, the distribution model, and the vertical boutique B2C model. In short, if merchants want the best marketing, they need to have a deep understanding of products and users.

Recommended reading:

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