Even though the storefront models is e-commerce in its truest form, businesses have found other ways of profiting online. (Image by Morgan Akens)

An e-commerce business model outlines how the business plans on making money and where it is positioned within the value change. E-commerce business models vary in complexity, but can be categorized into several types. When an entrepreneur decides to start a business online, these are the general business models to choose from in order to generate revenue.

E-Commerce Business Models

Advertising. The website obtains the majority of its revenue by displaying advertisements of other businesses. Depending on the advertiser, the website can earn revenue by either each time the page with the advertisement is viewed or when the visitor clicks on the advertisement. Advertisements are generally banners that are created in several standard sizes, or links to the website that hold a code to recognize the referrer.

Affiliate. E-Commerce businesse