Electonic commerce.. You own the store, stock, and brand. Full control, higher upfront costs.

What it is: You build your own online shop (like a digital version of a physical store). You choose the products, buy them in bulk, store them yourself (or in a warehouse you control or rent from a fulfillment service), and ship them to customers.

Control: Maximum control. You decide branding, packaging, customer experience, and pricing.

Costs: Higher upfront investment. You need money for inventory, storage, website setup, and marketing.

Profits: Potentially higher margins because you own everything and don’t share fees with middlemen.

Risks: If products don’t sell, you’re stuck with unsold stock. You carry the financial risk.

Best for: Entrepreneurs who want full creative and operational control, and are ready to invest more money and effort upfront.

Simplified Example: Owning a restaurant—you buy ingredients, cook, serve, and manage everything. High effort, high reward.

No inventory, low risk. But thin margins + less control.

What it is: You run an online store but don’t keep products yourself. When someone buys from you, you forward the order to a supplier who ships directly to the customer.

Control: Very little control. You don’t manage inventory, packaging, or shipping speed. The supplier does.

Costs: Very low startup cost. You don’t buy stock in advance, so no warehouse or inventory expenses.

Profits: Thin margins. Since suppliers do most of the work, your profit per sale is smaller.

Risks: Customers may face slow shipping or inconsistent product quality, and you can’t fix it easily.

Best for: Beginners who want to test selling online without big financial risk, or those who prefer focusing only on marketing and sales.

Simplified Example: Being a food delivery app—you take orders, but someone else cooks and delivers. Easy to start, but less profit.

Amazon handles storage & shipping.

Huge reach, but fees eat profits.

What it is: You send your products to Amazon’s warehouses. Amazon stores them, packs them, and ships them when someone orders. Your products also get listed on Amazon’s huge marketplace.

Control: Medium control. You own the product and brand, but Amazon controls storage, shipping, and customer service.

Costs: Moderate to high. Amazon charges storage fees, fulfillment fees, and takes a cut of sales.

Profits: Can be good because Amazon gives you access to millions of customers, but fees reduce your margins.

Risks: You rely heavily on Amazon’s rules. If they change policies or raise fees, your business feels it immediately.

Best for: Sellers who want access to Amazon’s massive customer base and don’t want to handle logistics themselves.

Simplified Example: Renting a food stall inside a giant mall (Amazon)—you bring the food, the mall handles serving and logistics, but they charge you fees.

Click-Through Rate (CTR) measures how often people click on your ads. Top performers increase CTR in 2026 by refining ad copy, using strong CTAs, and precise audience targeting.

Bounce Rate shows the percentage of visitors leaving after one page. Top performers decrease bounce rate in 2026 by improving page speed, relevance, and user-friendly layouts.

Conversion Rate tracks how many visitors complete a desired action. Top performers increase it in 2026 by optimizing funnels, trust signals, and A/B testing.

CLV estimates the total revenue from a customer. Top performers calculate it smartly in 2026 using purchase frequency, average order value, and retention metrics.

AOV measures the average spend per order. Top performers increase it in 2026 with upsells, bundles, and loyalty incentives.

CPA is the cost to acquire a customer. Top performers decrease it in 2026 by refining targeting, improving ad relevance, and leveraging organic channels.

ROAS shows revenue generated per ad dollar. Top performers increase it in 2026 by scaling winning campaigns and cutting underperformers.

Measures how often shoppers leave carts unpurchased. Top performers decrease it in 2026 with reminders, simplified checkout, and trust badges.

Impressions count how often an ad is shown. Top performers calculate it smartly in 2026 to benchmark reach and visibility.

Engagement Rate tracks interactions with content. Top performers increase it in 2026 by creating relevant, shareable, and interactive posts.