Shopify Business Model

How To Choose A Shopify Business Model

Want to work whenever you want and wherever you want? A Shopify eCommerce business can turn that dream into a reality. 

Shopify lets you list products for sale and generate revenue. You can scale your stores in Shopify to make more money without putting in more work.

Before starting an eCommerce business, you must first choose a Shopify business model. Each business model caters to a different target customer.

Establishing your business model narrows your focus. A narrowed focus helps you focus on priorities and encounter fewer distractions.

We’ll share some insights into the different business models and how to choose the right one for you.

The Shopify Business Model Choices

You can select from various models for your eCommerce business. Understanding the choices will help you make the best choice for your brand. These are some of the Shopify business models to consider:


This Shopify business model puts you in front of customers. Grocery stores function under the B2C model.


This business model involves two businesses. Companies providing done-for-you social media services utilize the B2B model.


Some business models revolve around consumers selling to consumers. You can sell your existing goods to others. Anyone using eBay to clear up their garage has engaged in a C2C business model.


Some consumers sell their services to businesses. You may sell your photography for corporations to use in their slides.

How to Monetize Your Shopify Business Model

Each Shopify business model relies on your ability to sell goods and services. Using effective tools such as Shop and Code will give you more capabilities.

More capabilities let you provide better experiences for customers. You can also optimize your backend to increase the average revenue per customer. 

Knowing your target audience will help you decide your monetization preference. Here are some ideas to consider:


Subscriptions provide recurring revenue. Subscriptions work best if you continuously update the same product.

Netflix makes billions of dollars each year through subscriptions. Their content library has plenty of movies and shows for customers. Netflix also continuously adds new shows to its core product.

If you can update the same product often, a subscription may make sense.

One-Time Payment Digital Products

You don’t make a recurring revenue from digital products such as books and courses. However, you can set and forget these products.

You don’t have to make any changes to the products. Fewer changes to the product give you more time to monitor your ads and make enhancements.

This Shopify business model can generate passive income after you build the foundation.


Dropshipping allows you to fulfill orders without keeping products in your inventory. It’s a low-cost path to monetizing your stores in Shopify.

You don’t purchase products until a customer buys from your site. You can price the product high enough to ensure a profit on each order. 

Most of the dropshipping experience is automated. The ease of dropshipping is also a disadvantage. Profit margins are declining, and more people are entering the space.

Dropshipping can generate meaningful revenue. However, it was a lot easier a few years ago.

Grow Your eCommerce Business

After establishing your Shopify business model, it’s time to grow your eCommerce business. 

Experience is the best teacher. You will learn from listing products, running ads, and listening to customers.

However, you can avoid common mistakes by learning about Shopify and eCommerce. If you want to learn more about starting an online business, stay on this blog. It contains many resources to help you grow your brand.

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