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12 Ecommerce Business Ideas for 2020

Jacqueline DeMarco

Contributing Writer at Fundera
Jacqueline DeMarco is a writer and editor based in Southern California. She has written on everything from finance to travel for publications including LendingTree, The Everygirl, Coveteur, and Apartment Therapy, among others. In her spare time, she enjoys traveling, especially if going somewhere she can spend time with animals.
Editorial Note: Fundera exists to help you make better business decisions. That’s why we make sure our editorial integrity isn’t influenced by our own business. The opinions, analyses, reviews, or recommendations in this article are those of our editorial team alone.

The gold rush is back. But this time there’s no need to dip into chilly rivers and streams. The current gold rush is online and accessible from the comfort of your couch. If you’re looking to find your fortune and start a new business, why not consider some of the most profitable ecommerce business ideas? 

These 12 ecommerce business ideas will hopefully put you on the right track to being a successful e-entrepreneur. Some require little financial investments and only need a functioning website. Others may take more time and money to develop. Consider these ecommerce business ideas for 2020 to find the one that best fits your interests. 

What Is an Ecommerce Business?

Before we dive into the most profitable ecommerce business ideas, you may be wondering what an ecommerce business even is. Ecommerce businesses transmit goods, services, and funds over the internet. In other words, any business that sells products or services online is an ecommerce business.

Starting an ecommerce business can be easier and less costly than a brick-and-mortar business, as you don’t have to find a physical space, furnish it, get the associated insurance and permits, etc. A great ecommerce platform can help you easily build your perfect business website and start selling goods in no time. So, now that we know what an ecommerce business is, let’s take a closer look at some ecommerce business ideas.

What Makes an Ecommerce Business Idea a Good One

So what exactly makes an ecommerce business idea a good one? Before you launch your new ecommerce business, it is worth considering a few factors. This is where you need to do your due diligence. 

First and foremost, you’ll want to research your desired market and analyze the demand, as well as your competitors. How is it growing? What are its struggles? When you review recent Google trends, does your market or business idea show up as a popular search? If you want to launch a physical product-based business, how is your product category selling on major ecommerce websites like Amazon? You may need to dig deep to see if there is a desire for your product or service.

Another great indicator that your ecommerce business idea has the potential for success, is to look at blogs and social media. Are there bloggers, influencers, and social media communities talking about your industry? Are there entire Twitter or Reddit threads devoted to the search for your product or service? Are there niche audiences and communities on social media channels like Facebook and LinkedIn that suit your business idea? This area of research doesn’t need to prove that your business idea already works, but that there is a strong need for it. Find your ideal audience now, so you know who to market your ecommerce business to when the time comes. 

12 Ecommerce Business Ideas for 2020

The sky’s the limit when it comes to creating a successful ecommerce business. You should follow your passion and get creative, but these 12 ecommerce business ideas capitalize on popular trends and industry growth. 

1. Subscription Models

There is a good reason more and more companies are adopting some form of a monthly or quarterly subscription model. Essentially, it’s an easy way to guarantee recurring income from customers. Between 2014 and 2017, subscription company websites had around 37 million visitors, a growth rate of over 800%. 

Subscription models can suit a variety of different ecommerce businesses. How they work, is a customer agrees to pay a set fee that the company charges automatically to the credit card on file each time the next installment is sent out—typically monthly, but subscriptions can also be weekly or quarterly. Once the customer is charged, they will be sent a physical product (or group of products) or will gain access to online platforms and digital products. 

This is a great ecommerce business idea because the possibilities are just about endless. Subscription models are ideal for products needed on an ongoing basis like personal care products, such as razors or toothbrushes, as well as fun products like makeup, clothing, and more. Some subscription services are for digital products: Music, movies, online communities, even retail platforms like Amazon have benefited from subscription services. If this model works for you, you could make and save a lot of money. Gaining a new customer is five times more expensive than retaining a current one, after all. And in case you’re wondering, in 2018 Amazon made over $1.4 billion from their subscription services in one quarter alone.

2. Meal Delivery

A meal delivery service can benefit from one-time orders or subscription-based models. In an increasingly busy and hectic world, many working professionals are happy to spend a little extra money on convenience. Frozen meals, meal making kits, and fresh food deliveries are more popular than ever before. If you can fill a niche in this area (gluten free, vegan, paleo, etc.), you may be able to find a devoted audience whose needs you can fill. The online food delivery industry is expected to grow to a value of $200 billion by 2025.

ecommerce business ideas

3. Online Education

Do you have a valuable expertise that you can share with the world? This ecommerce business idea could be the one for you. There is a lot more to education than literary analysis and arithmetic. There are plenty of people looking to better themselves without heading back to a physical classroom. Creating online courses, e-books, and any type of educational content (like blog posts or videos) can help your audience learn—and help you earn the big bucks. 

While you can always host this type of educational content on your own website, there are services like Teachable that make creating and selling online courses easy. You can also sell your course through online education marketplaces like Udemy. If e-books are more your style, you can sell them directly from your website or through options like Amazon or Etsy. 

According to Forbes, e-learning sales are likely to climb to $325 billion by 2025. Because you can offer online education through web portals, there is no need to invest in expensive production costs or supplies. This is an affordable ecommerce business idea for anyone who is ready to share their valuable skill set. 

4. Affiliate Marketing

Another low-cost ecommerce business idea you can take advantage of is affiliate marketing. If you already have an online presence and have established authority on a certain topic, this may be a very easy way for you to boost your income. Affiliate marketing is a form of marketing that allows individuals to represent other companies. Essentially, you can sign up for affiliate programs (also known as referral programs) with brands that align with your audience’s interests. For example, a fashion blogger would team up with retail brands to promote their clothing. In their blog content or on social media they can share their favorite dresses or shoes and include links to the products or offer discount codes so their audience can save money on their purchase. 

Affiliate marketers use special links and codes to track how many clicks and sales they are sending to a brand. The content creator will then receive a commission from the brand for this work. It’s important to only work with companies that align with your personal brand and audience, or you risk appearing inauthentic. A fashion blogger would likely alienate her audience if she continually tried to convince them to check out the latest outdoor equipment or financial software. But those products might be a great fit for other content creators. If you’re already running a successful business website or blog, affiliate marketing can be the natural next step to monetize your website’s traffic. 

5. Natural Products

Consumers have become increasingly interested in products that help them live an all-natural or more environmentally friendly lifestyle. Cleaning, household, beauty, and personal hygiene products made from safe and clean ingredients take advantage of a very popular trend that isn’t likely to end anytime soon. The global natural cosmetics market alone is estimated to grow from a worth of $36 billion in 2019 to $54 billion in 2027. An emphasis on natural and organic food is also a trend worth capitalizing on. In 2018, the U.S. organic market grew 6.3% to $52.5 billion. Non-food sales increased by almost 11% to $4.6 billion. If you have a passion for natural and organic products, this ecommerce business idea is the perfect way for you to share this passion with like-minded customers. 

6. Wellness Services

Wellness is winning. Similar to the emphasis on natural and organic products and food, many consumers are investing in wellness-based products. From workout gear to essential oils to meditation apps. Anything that can help consumers relax, feel better, and be healthier is desirable at the moment. As of 2019, the global health and wellness industry is worth an estimated $4.2 trillion. So get your Zen on and start a fitness business or other wellness ecommerce business.

7. Coaching and Mentoring

Similar to online education opportunities, you can sell your coaching or mentoring services through an ecommerce website. A business like this requires even less effort upfront than creating e-books or e-courses and can be simply managed through a website and a series of phone calls or in-person meetings. 

However, this format does not allow for passive income. In order to make income you will have to continually provide services. Whereas with online education options like video content or an e-course, you can create a product once and keep gaining revenue from it over the years. However, coaching and mentoring is an easier way to dip your toes into the water of online education as well as gain a loyal customer base. An appointment scheduling software can help you keep track of your calendar and allow clients to easily check your availability. 

ecommerce business ideas

8. Creative Services 

Are you a creative? Do you know how to design an eye-catching logo, write killer copy, or arrange flowers like nobody’s business? It sounds like you’re a creative at heart—and like you have some valuable skills you can sell online. Many creatives sell their products and services online. Designers, photographers, writers, and others can offer their services online, as well as sell any existing products they may have available. A web designer, for example, can offer custom website designs for clients, or sell pre-made templates at a lower cost through their ecommerce business. 

9. Technical Services

So, maybe you’re not the creative type. But if you’ve developed a technical skill set, then you can offer your in-demand skills online. Can you provide tech support? Are you a coding wizard? Perhaps you have software or an application you can sell. Even if your product or service only exists on a device, you can still start a bustling ecommerce business. Luckily, without all the expense of manufacturing, storing, packaging, and shipping. 

10. Dropshipping 

Say you want to start an ecommerce business selling material goods, but don’t want to commit to product development, sourcing, and manufacturing. Not to mention having to store inventory and ship products. There is a great solution for making selling products easier and it’s called dropshipping. If you’re a dropshipper, you’ll sell products to customers that ship directly from a manufacturer or supplier. You’ll get a commission for each sale, but don’t have to commit to buying any inventory (although some startup costs may apply) that you might not be able to sell. For the record, in 2017 dropshipping fulfilled about 23% of online sales (around $85.1 billion in sales). Working with larger retailers will help you take advantage of their faster and more affordable shipping options, warehouses, and other valuable resources. This ecommerce business idea is a great way to dip your toe into the industry with little risk on your end. 

11. Travel Services

Everyone is looking for a great escape, so why not take advantage of that fact? According to Deloitte, from 2009 to 2017, U.S. hotel booking grew from $116 billion to $185 billion. Similarly, airline revenue jumped from $155 billion to $222 billion. Now is the time to start a travel business. You can help customers plan trips, provide valuable advice, write travel guides, or sell travel necessities like luggage. Conveniently enough, travel companies often offer affiliate programs. Airbnb, Booking.com, Trip Advisor, and Skyscanner all offer credits to use their services or cold, hard cash if you join their affiliate programs. 

12. Wedding Services

Do you love love? You’re not alone, which is why the wedding industry is booming. Considering the average wedding costs $32,329 and the U.S. wedding industry brings in $72 billion in revenue annually, there is a lot of earning potential in the wedding space. Food, flowers, decorations, fashion, beauty, stationary, photography, and wedding planning are just the beginning. Chances are you can find a space for your ecommerce business in the wedding world. And where do brides start their wedding planning? Online, of course. 

Most Profitable Ecommerce Business Ideas for 2020: The Takeaway

No matter what your startup budget is, how much time you want to commit to a new business, or what your interests are, there is a great ecommerce online business idea waiting for you. With a little research, planning, and passion, you’ll be well on your way to finding success online. 

26 Free Ecommerce Tools to Get Your Store Off the Ground

Jacqueline DeMarco

Contributing Writer at Fundera
Jacqueline DeMarco is a writer and editor based in Southern California. She has written on everything from finance to travel for publications including LendingTree, The Everygirl, Coveteur, and Apartment Therapy, among others. In her spare time, she enjoys traveling, especially if going somewhere she can spend time with animals.