There’s Big Money In E-Commerce Website Business

By November 6, 2018 ,

Do you have or are you thinking about launching some kind of e-commerce website Dubai? Do not you know how your customers arrive and why they do it? Have you done advertising campaigns or are you thinking of doing them but do not know how to approach them?


In this article, we will try to break down some types of e-commerce website business models to try to provide some clues to help you. It can be useful if you are thinking about launching e-commerce solutions, or if you want to get more out of the one you already have.

A few years ago, e-commerce solutions platforms had a simple conversion funnel. Customers entered e-commerce website through SEO primarily, or SEM in the case of paid search ads and little else. The funnel was clear; they came to our e-commerce website, they navigated looking for articles on our ecommerce website, they left or started the purchase process and finally, they bought.

But nowadays e-commerce website pages are not that simple. To begin the acquisition of users has been complicated enough. Users no longer browse e-commerce website to find articles, but they directly write the article in the search engine (usually Google) and select the page that most interest them from among the search results. This implies that SEO positioning is fundamental so that users find us and therefore the keywords are very important to sell a product.


Purchases usually start far from the platform itself. Today more than ever social networks are one of the main focuses of potential buyers of our products, so it is necessary to measure where our traffic comes from and which social network is most relevant to our business. The number of social networks adds more complication to the conversion funnel of our platform.

In addition to social networks, mailing campaigns, ads on other websites, banners, etc. They also attract a percentage of clients that we have to be able to measure and know.

And to finish curling the loop, the most powerful platforms predict what the client wants so they do not show the same page for one client as for another. SOUQ does not recommend the same products to me, as to you, simply because our previous searches have been different and their algorithm is based on our past interests to suggest new products related to the current search.


As you can see, the base e-commerce website business is to sell products online, but the success of many of these platforms is based on the recurrence of users. To do this, they establish systems for customer loyalty, creating preference lists, offering suggestions, a wide range of products, ease of purchase and payment, … all this, so that the separation between the purchase and the user approaches a just click The types of e-commerce website business models do not stop innovating; SOUQ patented the purchasing system in a single click, which then licensed to other platforms).

If you already have an e-commerce solution or are thinking of e-commerce website development, it is important to know which e-commerce website Dubai model is yours. This happens by knowing what relationship we have with the client in our platform and for this, it is essential to calculate the rate of the repurchase of customers on the ecommerce website.

How many percents of people who bought something last year have done it again this year?

E-commerce Website business models in Acquisition mode

If less than 40% of the users who bought last year have also bought this year, business model needs to put more customers in the funnel. That is, we need to attract customers to e-commerce website. In this type of ecommerce website, loyalty programs are not profitable in the long term. For example, an online scarf sale ecommerce website, if it is in acquisition mode, should devote more efforts to attract new customers, for example, thanks to recommendations from current customers (via discounts, for example) than to make an effort because customers buy more than a scarf.

E-commerce Website business models in hybrid mode

Hybrid mode is the one that includes the platforms whose percentage of buyers that repeat purchases this year, are between 40% and 60%. In this case, the growth of the company will be given by a mix between recurring and new customers. Normally customers of this type of platform buy between 2 and 2.5 times a year. An example of this type of platform is AWOQ. (This is determined by Lean Analytics).

E-commerce Website business models in loyalty mode

If 60% or more of the previous year’s customers have made a purchase this year. In this mode, it is essential to focus on increasing customer loyalty because that is how our company is profitable and can grow. Logically SOUQ is a clear example of this type of platform.

In short, it is not better to be in one way or another. The really important thing is to know in what e-commerce website business model we operate on our platform, to know what we have to focus our efforts on. For this, metrics are the key to be able to make decisions that allow us to improve and grow in our ecommerce website business.

If you wish to contact us or receive information about our workshops or advice, you can Call Si3 Digital for an appointment for e-commerce consultancy services at +971 4 4273715 or Email: [email protected] or Visit our website:



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