Companies that use B2B eCommerce need to stay ahead of the curve to succeed, and a big part of that is choosing the right way to make money. 

Relying on a single source of income is risky. Diversifying your revenue streams by embracing multiple eCommerce revenue models — or even simply adding additional revenue streams to your existing model — is key to long-term growth and resilience.

This article breaks down seven popular B2B eCommerce revenue model options, giving you ideas on how to improve your B2B eCommerce strategy and diversify your income.

Short on time? Here are the key takeaways

• Selecting the right revenue model for eCommerce business is essential for B2B success.
• Top B2B eCommerce revenue models include direct sales and supplementary revenue strategies, the use of marketplaces, subscription services, advertising, affiliate partnerships, and data monetization.
• Diversifying your income streams by embracing multiple eCommerce revenue models can help mitigate risks and maximize profitability.

What is an eCommerce revenue model?

An eCommerce revenue model is simply the plan a business uses to make money from its online activities through products or services.

Revenue models are interconnected with business models, but the two are distinct concepts. Let’s break them down below.

Revenue model vs. business model

A business model defines the core strategy of how an eCommerce business operates and creates value for its customers. It encompasses:

• Who the business sells to. For example, if you're a tool manufacturer, you might sell to large retailers like Home Depot or directly to construction companies.
• What unique value the business offers. For instance, you might offer custom-designed tools that improve efficiency for specific industries.
• How the business attracts customers. This could involve targeted B2B marketing campaigns or offering free trials of your products to potential clients.
• How the business functions and fulfills orders. You might use a just-in-time manufacturing process and partner with logistics companies for efficient order fulfillment, for example.

A revenue model explains how an eCommerce business generates income from its activities. It details the specific ways the business makes money, such as sales revenue, subscription fees, advertising, and affiliate marketing.

In other words, the business model focuses on attracting and retaining clients, and the revenue model of eCommerce is about the different ways a business can make money from those clients.

For instance, a B2B business like a fashion wholesaler supplying clothing to boutique retailers has a business model of attracting customers with a user-friendly online store featuring detailed product information and sample ordering. Their revenue model is generating income through marking up wholesale prices, offering a premium subscription, and providing dropshipping services for larger boutiques, taking a 15% cut per transaction.

Revenue model vs. revenue stream

Now, let's clear up another common point of confusion: the difference between a revenue model for commerce and a revenue stream.

A revenue model is the overarching strategy a business uses to generate income. 

Meanwhile, a revenue (or income) stream is the individual channel or source through which a business earns money within its chosen revenue model. 

For example, a B2B fashion store could operate on a white-label revenue model, generating income by designing and manufacturing clothing items that other businesses can brand as their own. It can then earn through multiple revenue streams: design fees, production and customization fees, and royalties based on sales volume.

6 eCommerce revenue models to diversify your B2B income streams

To build a truly resilient and profitable company that uses B2B eCommerce, it is wise to diversify the income streams in your  eCommerce business plan. Embracing multiple revenue models in eCommerce can bring about new ways to earn money while ensuring you are not reliant on one revenue stream. 

Below are seven powerful revenue models for commerce that are worth exploring.

Direct sales and supplementary revenue strategies

The sales revenue model in eCommerce is the bread and butter of most businesses, both online and offline. In the B2B eCommerce world, you can make money through this model in several ways:

• Markup on products: Buy products from a supplier and sell them for a higher price on your platform. The difference is your profit. Say you run a B2B office supply business, for example. You buy bulk paper for $20 per case and sell it for $30, earning a $10 profit per case.
• Subscription fees: Charge customers a recurring fee to access your platform or exclusive features. This is great for building a loyal customer base and ensuring predictable revenue. A B2B food distribution platform could offer a premium tier for $999/month, giving restaurant clients access to features like priority ordering, real-time inventory updates, and personalized menu planning tools based on seasonal ingredient availability.
• Transaction fees: Every time a transaction occurs on your platform, take a small percentage as a fee. This is a common model for marketplaces and platforms that facilitate transactions between businesses. If you run an industrial equipment marketplace, for example, you might charge a 2% fee on each transaction, earning $200 on a $10,000 machine sale.
• Advertising revenue: Sell ad space on your platform to other businesses, generating income from their promotions. For instance, if you sell electronics B2B, you could allow suppliers to purchase banner ads on your website, charging $500 per week for prime homepage placement.
• Value-added services: Offer additional services — such as automatic order updates, personalization, and real-time order tracking — to boost your income and provide extra value to your customers. A B2B furniture supplier could, for example, offer assembly and installation services for an additional fee, charging $200 per office setup.

Putting it all together, let’s say you are a B2B construction equipment supplier using a unified commerce platform such as DJUST. You specialize in selling heavy machinery like excavators, bulldozers, and cranes to construction companies and contractors. You could use the sales revenue model in eCommerce to generate revenue in multiple ways:  

• You purchase a bulldozer from the manufacturer for $200,000 and sell it to a mid-sized construction firm for $240,000, making a $40,000 profit. 
• For each online purchase, you add a 1% transaction fee. On that $240,000 bulldozer sale, you earn an additional $2,400. 
• You allow a construction safety gear company to advertise on your platform, charging them $1,000 per month for a banner ad.  
• You offer on-site training for the bulldozer operators at $500 per day, and a maintenance service package for $5,000 per year. 

This diversified approach ensures steady income from various sources, ultimately contributing to a stronger bottom line.

Marketplace

The marketplace model in B2B eCommerce is a way to create a hub where businesses connect and transact. By facilitating transactions between buyers and sellers, you can generate substantial revenue, even with small fees per sale.

You have two options for implementing this model:

• Use existing marketplaces to quickly reach a wider audience and benefit from their infrastructure.
• Implement a dedicated marketplace solution using specialized SaaS software. This allows you to create a marketplace tailored to your specific niche or industry, offering unique features and greater control without the complexity and cost of custom development.

Here is how to make money with this model:

• Transaction fees: Earn money by taking a small cut of every sale. The more sales, the more money you make.
• Subscription fees: Offer enhanced visibility, premium features, or priority customer support through tiered subscription plans.
• Listing fees: Charge businesses a fee to list their products or services on your eCommerce platform, providing a steady income stream.

Example: A B2B marketplace for industrial parts connects manufacturers with buyers, generating revenue through transaction fees, premium subscriptions for enhanced listing visibility, and fees for listing new products.

Subscription

The subscription model in B2B eCommerce is often more nuanced than simple access to a platform or service. Companies that use B2B eCommerce can earn regular income with the subscription model by offering:

• Preferential pricing: Businesses pay a recurring fee to access discounted rates on products or services, potentially leading to significant cost savings over time.
• Exclusive network access: Subscriptions can grant entry to select networks of suppliers, service providers, or industry peers, facilitating valuable connections and opportunities.
• Enhanced services: Subscribers might receive priority customer support, advanced analytics, or other value-added services that non-subscribers don't have access to.
• Streamlined procurement: Some subscription models offer simplified ordering processes or guaranteed inventory availability, which can be crucial for B2B operations.
  
  

Example: A B2B industrial supplies company can use a subscription-based eCommerce model where they offer three tiers. On the Basic tier, members get access to the e-shop with standard pricing and regular shipping options. On the Premium tier, Members receive a 10% discount on all products in the eshop, free expedited shipping on orders over $1000, and access to a wider range of products not available to non-subscribers. And on the Enterprise tier, in addition to all Premium benefits, members get priority restocking, customized bulk pricing, dedicated account management, and early access to new product lines.

Advertising

In the B2B eCommerce context, eCommerce advertisement revenue models typically refer to offering ad space on your platform to your suppliers, manufacturers, or other relevant businesses. This idea, often known as retail media, introduces another way to earn income while strengthening your relationships with partners and potentially making shopping more convenient for your customers.

You can implement advertising on your B2B eCommerce platform through:

• Banner ads: Offer prominent banner ad spaces on your homepage, category pages, or throughout your site.
• Featured product listings: Allow suppliers to pay for premium placement of their products in search results or category pages.
• Sponsored content: Offer opportunities for branded content, such as blog posts or how-to guides, that showcase specific products or brands.
• Email newsletter ads: If you send regular newsletters to your B2B customers, include paid ad spaces within these emails.
• Pop-up or interstitial ads: Use these sparingly to highlight special offers or new products from advertisers.

The type of advertising you can offer depends on your specific B2B eCommerce niche. For example:

• If you're a distributor of industrial equipment, you could allow manufacturers to advertise their latest models or special promotions on your platform.
• As a wholesaler of office supplies, you might offer ad spaces for brands to showcase their premium product lines.
• If you operate a B2B marketplace for the food service industry, you could allow food producers to advertise their products to restaurants and catering businesses. 

Example: Let's say you run a B2B eCommerce platform specializing in urban infrastructure equipment, selling to cities, municipalities, and urban planning firms. Your catalog includes a wide range of products from various manufacturers, such as bus benches, street lamps, trash bins, and playground equipment. You could implement an advertising model where:

1. A street lamp manufacturer pays for a featured banner ad on your homepage, showcasing their new energy-efficient LED lighting solutions.
2. A bus shelter company sponsors a section on your website about "Creating Comfortable Public Transit Spaces," which subtly highlights their products.
3. A playground equipment manufacturer pays for their products to appear at the top of search results when urban planners search for "playground installations" or related terms.
4. A trash bin producer purchases ad space in your quarterly email newsletter, which goes out to all registered city procurement officers and urban designers.
5. A bike rack manufacturer pays for a pop-up ad that appears when users are browsing the "Street Furniture" category, promoting their new secure, space-saving design.

Expert tip: As a B2B business, you might consider partnering with a digital marketing agency that specializes in eCommerce copywriting and eCommerce product photography. Doing so can help you optimize your online presence and drive sales.

Affiliate

The affiliate revenue model in eCommerce is a performance-based model where businesses earn commissions by promoting other companies’ products or services. By driving traffic or sales to the partner company, the affiliate earns a percentage of the revenue generated.

Here are some ways a B2B company can generate revenue using affiliate marketing:

• Affiliate partnerships: Form strategic partnerships with companies offering complementary products or services to your target audience.
• Referral links: Provide unique referral links to track the traffic and sales your promotions generate.
• Commission structure: Establish a clear and fair commission structure with your partners, outlining the percentage or fixed amount you will earn for each successful referral.
• Targeted marketing campaigns: Develop and execute targeted marketing campaigns to promote your partners’ offerings to your audience through various channels (e.g., email, social media, content marketing).

Example: Imagine you run a B2B eCommerce platform that supplies bulk food products to institutions like hospitals, schools, and corporate cafeterias. You partner with companies that provide services to your target customers but don't directly compete with you, such as commercial kitchen equipment suppliers, food safety consulting firms, and institutional cleaning supply companies. 

These partners become your affiliates. They promote your food supply platform to their own customers through their websites, email newsletters, and during client consultations. Each affiliate has a unique referral link or code. When a new customer signs up on your platform using this link or code, the affiliate earns a commission.

This way, you're expanding your customer base by leveraging the networks of complementary businesses. Your affiliates earn additional revenue by recommending a service their clients need, and you gain new customers through trusted referrals.

Expert tip: The key to success with the affiliate model is finding partners whose products resonate with your target audience. By focusing on complementary offerings, you ensure your affiliate promotions are genuinely valuable to your customers, making them more likely to click links and ultimately drive more revenue for you and your partners.

Data monetization

Data is the new gold, and with the data monetization model, your B2B eCommerce business can tap into this valuable resource. By collecting and analyzing customer data, you gain insights that enable you to offer a more personalized experience while also opening up new revenue streams.

How exactly can you monetize your data with this B2B eCommerce strategy? There are a few ways:

• Aggregate data: Combine data from different sources to identify trends and patterns that can inform your business decisions and attract potential partners.
• Sell anonymized data sets: Group together customer data without any identifying information and sell it to companies who can use it for research or analysis. 
• Offer personalized product recommendations: Use customer data to determine what they like and suggest products they are likely to buy. This can lead to more sales.
• Develop targeted marketing campaigns: Tailor your marketing messages and offers to specific groups of customers based on their data, making your campaigns more effective.
• Create data-driven pricing models: Analyze customer data to understand how much they are willing to pay for certain products. This can help you set optimal prices to maximize revenue.

Example: A B2B fashion supplier collects data on its customers' online purchase history, company size, and industry. They can use this data to improve inventory management by predicting demand for specific types of goods, offer personalized product recommendations to customers based on their past purchases, develop targeted marketing campaigns with special discounts for specific industries, and inform product development decisions based on observed trends in customer preferences.  

The bottom line

Choosing the right way to make money is key for any B2B eCommerce business. By understanding different eCommerce revenue model options — including sales, marketplace, subscriptions, ads, affiliate marketing, and data monetization — you can create multiple income streams and set your business up for long-term success.