Types of E-commerce Sites: Models, Tradeoffs, and Infrastructure
In the early days of e-commerce, the choice was simple. You either sold through your own site or you didn't sell online. There were no marketplaces worth considering, no creator storefronts, no platforms that blended wholesale, D2C, and third-party sellers into one digital ecosystem.
Now, it's a different story.
If you're a founder launching a product line or a digital team scaling online sales for a legacy brand, you're not just choosing what to sell. You're choosing how to exist in the e-commerce supply chain. That choice affects your tech stack, your margins, your logistics, and your customer relationship.
Let's break down the real business models behind modern e-commerce websites.
1. E-commerce Marketplace
An online platform that connects a wide range of third-party sellers with buyers. The marketplace operator facilitates transactions but usually does not own the inventory. It acts as an intermediary and earns revenue through commissions, listing fees, or advertising.
Think of Amazon Marketplace, Walmart.com, or Target Plus. These platforms attract customers who come to browse broadly rather than looking for a single seller. The platform owns the audience, and you rent a spot.
For many sellers, especially those just starting out, marketplaces provide a fast track to growth. You do not need to build your traffic. You simply add your SKUs and start selling.
Amazon combines this model with its own first-party retail business while also supporting millions of third-party sellers with services like Fulfillment by Amazon (FBA). Target Plus is a curated, invite-only marketplace that brings in select sellers who fit Target’s product mix and brand standards.
Best for:
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Sellers focused on unit economics rather than brand building
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Companies testing new markets or product-market fit
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Clearing out liquidation or slow-moving inventory
The tradeoff:
Margins tend to be slimmer. Product discovery depends heavily on algorithms. It is rare to build a direct connection with customers. Success means optimizing for sales volume over customer loyalty.
2. E-commerce Retailer (E-tailer)
A business that sells products directly to consumers through its own branded website or storefront and typically owns the inventory it offers. This model gives full control over branding, customer experience, and sales from start to finish.
Amazon’s first-party retail operation is a prime example. It buys wholesale, owns the inventory, and sells directly to customers.
Target also fits this model, operating mainly as a traditional retailer with a broad network of physical stores and a strong first-party e-commerce site. Most products are owned and managed directly by Target.
Best for:
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Brands that want full control over the customer experience
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Companies focused on building long-term loyalty
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Retailers who manage inventory and pricing closely
The tradeoff:
Managing inventory and customer service requires significant resources and investment. Growth can be slower since you do not benefit from a marketplace’s built-in audience. Driving traffic and fostering brand loyalty demands ongoing effort.
3. Branded Storefronts
This is your domain. Your website. Your checkout, your content, your first-party data.
Most D2C brands begin here. Shopify, WooCommerce, Magento, and custom stacks power these sites. You manage the inventory. You own the customer list. The margin is yours to keep and the risk too.
Many brands combine storefronts with data feeds pulled from larger retailers like Wayfair or Overstock to track pricing and availability in real time.
Major hardware and specialty retailers with strong physical footprints, such as Home Depot and Lowe’s, also fit squarely in this category. They operate branded e-commerce sites that serve as digital extensions of their stores.
These retailers:
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Sell inventory they own and manage directly
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Control the customer experience, data, and fulfillment processes
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Use omnichannel strategies like Buy Online, Pick Up In-Store (BOPIS), ship-to-store, and ship-from-store to blend physical and digital sales.
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Offer extensive product catalogs that often surpass what’s available in a single store
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Integrate value-added services such as installation, pro support, and project planning tools
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Focus primarily on first-party sales rather than hosting third-party marketplaces
Best for:
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Brands and retailers focused on ownership of brand experience and customer relationships
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Businesses with physical stores that want to integrate digital and offline channels
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Categories requiring specialized services or in-person pickup
The tradeoff:
Managing a branded storefront with omnichannel operations demands significant investment in infrastructure and coordination. You are responsible for traffic, fulfillment, and customer satisfaction without the marketplace buffer.
4. Vertical Marketplaces
Unlike general marketplaces, vertical platforms go deep, not wide. Etsy owns Handmade. StockX dominates sneakers. Not Just A Label serves emerging fashion designers. Faire connects independent brands to retailers.
What these platforms lack in total reach, they make up for in intent. The buyer is there for your kind of product. That means higher conversion, better merchandising, and less noise.
Best for:
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Niche sellers or creators
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Brands looking for curated exposure
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B2B sales with specific category focus
The tradeoff:
You're limited by the category, and scaling beyond that often requires a shift to your own storefront or a larger platform.
5. Hybrid: D2C + Marketplace
This is increasingly the norm.
A brand sells on Amazon and Walmart to scale reach but maintains its own Shopify or custom-built site to own retention. The D2C storefront handles subscriptions, bundles, or exclusive SKUs. Marketplaces serve as engines for customer acquisition and product testing.
Many of today’s best-known ecommerce brands run this way. Think Native, Allbirds, or Hims. These companies began as D2C-first, then expanded to marketplaces and retail partnerships while retaining strong control over their own sales channels.
Hybrid sellers often monitor competitor pricing across platforms like Home Depot and Lowe’s to inform bundled D2C offers or marketplace adjustments.
Best for:
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Brands growing beyond one channel
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Teams with operations maturity
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Founders optimizing CAC and LTV together
The tradeoff:
Operational complexity increases. Inventory, pricing, fulfillment, and messaging must be managed across multiple surfaces.
6. Subscription Ecommerce
Here, the product is not just sold. It’s scheduled. The brand becomes part of the customer’s routine.
From meal kits like HelloFresh to replenishment models like Dollar Shave Club to curated boxes like BarkBox, subscription ecommerce trades product margin for predictable revenue.
Subscription brands in the consumer goods space monitor channels like Costco or Sams’ Club for warehouse pricing and bundle positioning.
Best for:
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Consumables and replenishment
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Experience-based categories like beauty or pets
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Brands with strong unboxing or community appeal
The tradeoff:
Churn becomes your main enemy. Fulfillment must be tightly synchronized. A single delay can break trust and cancel future revenue.
7. White-Label and No-Code Storefronts
A growing class of sellers doesn't own the supply chain. They simply layer a front end on top of suppliers and fulfillment partners.
Print-on-demand, dropshipping, and creator-led commerce are driving this trend. Platforms like Printful, Gelato, Shopify, and Spring (formerly Teespring) make it easy. You design and market—the platform handles inventory and fulfillment.
Best for:
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Influencers and niche creators
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First-time entrepreneurs testing ideas
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Brands validating demand before investing in stock
The tradeoff:
Margins are thin. You rely on external partners for quality and speed. If they fail, your brand takes the hit.
8. B2B Ecommerce Portals
B2B ecommerce looks very different from its consumer-facing sibling. The products are often unbranded. The orders are larger. The relationship matters more than the interface.
Platforms like Alibaba and Thomasnet serve wholesalers and industrial buyers. Others like Faire and Handshake (by Shopify) enable boutique and retail B2B commerce at scale.
These portals often include negotiation tools, approval workflows, and dynamic pricing based on volume. The storefront is just one component of a larger procurement or sales operations system.
Best for:
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Manufacturers and importers
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Brands selling to retailers or distributors
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Teams that need multi-user access and credit terms
The tradeoff:
Sales cycles are longer. Integration with ERPs or CRMs is a must. You don’t just run a storefront — you run a sales channel.
9. C2C Platforms
eBay, Facebook Marketplace, Poshmark, and Mercari are built for individuals to sell to other individuals. These platforms offer guardrails like ratings, built-in shipping options, and dispute resolution to encourage trust.
While not traditionally part of “brand ecommerce,” these platforms shape how customers buy used goods, collectibles, and local items.
Best for:
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Resellers or recommerce startups
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Collectibles, luxury, or vintage categories
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Platforms focused on trust and peer networks
The tradeoff:
C2C relies on individual participation. Inventory is fragmented. Quality control is difficult to enforce.
10. C2B and Creator Commerce
There’s a flip side to ecommerce that’s often overlooked: individuals as suppliers, and businesses as the buyers.
This model thrives in the creator economy. Platforms like Fiverr, Upwork, and Influencity let creators sell skills, content, or influence. Others, like #paid, Billo, or Backlinko's affiliate programs, enable user-generated content (UGC), testimonials, and affiliate storefronts to fuel brand growth.
Best for:
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Brands sourcing visuals, testimonials, or creative work
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Creators monetizing their skills or audience
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SaaS companies building creator-focused tools
The tradeoff:
Quality and pricing are variable. The supplier network is decentralized. Building repeatability takes time and tooling.
Final Word
Modern e-commerce isn't one-size-fits-all. It's a mix of models, each with its own tech needs, customer behavior, and margin realities. The model you choose shapes how you grow and what you need to build behind the scenes to keep things running.
If you're figuring all this out and need clean, flexible access to ecommerce data like listings, marketplaces, or customer reviews, Unwrangle gives you the APIs to make it happen. Whether you're testing SKUs, tracking competitors, or powering AI workflows, your data shouldn't slow you down.
Here are a few guides to help you get started:
See what you can build when e-commerce data works for you.