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Top 7 Online Business Models That Are Better Than Dropshipping

Drop shipping is an eCommerce fulfilment business strategy in which merchants buy items from third-party suppliers, often wholesalers or manufacturers, when customers place orders rather than storing inventory.

Dropshipping is perfect for entrepreneurs, solopreneurs, online entrepreneurs, and agile startups and brands since it is less expensive to create and maintain a dropshipping business than the traditional retail model. Dropshipping, like other company concepts, has advantages and disadvantages. Depending on your current circumstances and the type of online business you wish to launch, the following online business models are, in some cases, better than drop shipping:

Drop Servicing

Drop service is the sale of a service performed by someone else. Simply put, you offer a service that you outsourced from an agency rather than performing yourself. It is effective when you, Find a service that complements the business strategy and is in high demand on the market. Locate a service provider, agency, or freelancer who will collaborate with you to perform the service under your name. Find customers or hire someone to find them for you. Set your pricing and get paid — depending on your policy, you may do this before or after service delivery. Ascertain that the price is greater than what you would pay the service provider.

You can also engage the service provider. Look out for quality and handle any questions from the service provider to the client and vice versa. Pay the service provider and keep the difference between the price you charged the customer and what you paid the service provider. Do a follow-up required by the customer.


A direct-to-consumer business strategy involves selling items directly to customers without the need for wholesalers, brokers, or middlemen.

How does it work? Brands build their online store to sell directly through an eCommerce website or store, social media, or email methods such as Instagram advertisements. Customers make purchases by clicking on advertisements and then paying for them on the same platform.

Private Drop Shipping Agent

A private drop shipping agent is an agency, person, or corporation who provides a variety of services such as assisting you in sourcing items from the finest suppliers, warehousing these products, and fulfilling/dropshipping orders to clients.

White Labeling

The white labeling business concept is retailing the products of another firm under your brand name. The original manufacturer must allow you to resale things under your brand if you use white labeling.

Following the signing of a white-label agreement, the manufacturer gives you their goods at a wholesale price, and you sell it at your preferred retail rates under your brand. Creating a valuable private label brand might help you generate more income from the perceived worth of the brand even while you’re selling items from another manufacturer.

Affiliate Marketing

In affiliate marketing you receive a reward for selling another person’s/product(s) company’s through your affiliate links, earning a portion of each successful sale—average commissions range from 5 to 30%.

To begin, seek for an affiliate program/network that provides some of the services or products you want to provide. Examine the program overview: the sort of goods or service, payment options, and the commission they provide.

If you’re interested, sign up and wait for acceptance confirmation. Create content and include your personalized affiliate links from there.
When one of your users makes a purchase, the links will monitor it and pay you a commission. Make sure to advertise your affiliate links across several platforms, including social media, your website, newsletters, and any other platform that supports link sharing – particularly ones that give do-follow links (for SEO and backlinks).


The business owner in this online-based eCommerce business model buys items in bulk from a manufacturer — generally at a lower price — and then sells them to retailers at a higher price for profit.

This is how wholesale works: The wholesaler spends on purchasing items from manufacturers and storing huge quantities of products — a larger MOQ. Wholesalers then resell to retailers, who in turn resell to consumers.

Private Labeling

Private labelling is related to yet distinct from white labelling. You, the retailer, purchase items from private label manufacturers and suppliers for retail resale.

The producer develops a product and offers to allow private label business owners to sell it under their brand names — frequently to raise production income. The product is subsequently sold to a store by the producer. After renaming the goods, the store offers them privately to the consumer at a profitable price.


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