From small startups to large enterprises, ecommerce businesses can come in all sizes. Let’s look at the main four you’re likely to come across.
Startup.
A startup is a business or project in the first stages of development, often built by an entrepreneur to pursue an innovative business model.
Typically a startup has less than 100 employees, however a startup is often defined not by size but by profitability. According to Alex Wilhelm, writer for TechCrunch, a company is no longer considered a startup after it reaches a $50 million revenue run rate or is worth more than $500 million, on paper or otherwise.
Small business.
Small businesses are sole proprietorships, partnerships or corporations that sell products or services and make less money and have fewer employees than large multinational corporations. The U.S. Small Business Administration further defines a small business in terms of employment (from 100 to over 1,500 employees) or average annual receipts over time (ranging from $1 million to over $40 million).
Mid-market.
According to Sangoma, small and medium-sized enterprises (SMEs), also known as “mid-market,” businesses, typically have between 101-500 employees and genrate between $10 million and $1 billion in annual revenue.
Enterprise.
Large enterprise businesses can have over 1000 employees and usually generate over $1 billion in annual revenue.
Since the beginning of 2020, 45% of ecommerce software buying activity has come from enterprise-level companies.
Examples of Ecommerce
Of course, to run an ecommerce business, you have to have something to sell.
But unlike brick-and-mortar businesses, ecommerce retail can take on a number of forms, with transactions involving a variety of products and services.
Let’s dive into three examples of what you can sell online:
Sell physical goods.
Think of your favorite clothing, home decor or electronics brand — these are all prime examples of selling physical goods online.
Physical goods are any tangible products that can be bought and sold in-store or online. Most often, these types of ecommerce businesses will be either B2C or D2C brands, but even some B2B vendors are also in the physical goods category.
Sell digital goods.
Whether you’re a seasoned online merchant or an aspiring entrepreneur, digital products are a promising avenue for selling online.
Digital products can come in the form of digital files such as templates and tools or online classes, or they can be downloadable products such as printable artwork, music or infographics.
Sell services.
Selling services entails offering a specialized service, such as freelance writing, influencer marketing or online coaching in exchange for compensation.
Many service-based businesses are B2B, however some B2C brands, such as Fiverr, offer online services as well.
