What is a Value Delivery Method?

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Value Delivery method

Five value delivery method for ecommerce

If you have a car as a model, your value delivery method then is the engine.

The coolest part is – where your edge is found.  How can one compete and create an ecommerce business that can stand the test of time?

We shall look at a few ways taken to market a product in ecommerce by industry leaders.

What is a Value delivery method?

Value delivery method is the manner in which a product is designed in such a way that it will offer value to customers who are using it.

D2C – Direct to Consumer

This is the act of cutting the middle man. This method has helped so many consumer brands built trust and loyal following with a very fast growth in the process.

Online retailers are constantly setting the standard for vertical disruption while other brands like Glossier are working to show how the D2C is still an area for business innovation and growth.

White and private labels

To ‘White label” is to write your name on a product bought from a distributor.

In private labelling on the other hand a retailer pays a manufacturer to produce a product for them to sell exclusively.  

With both labelling you can stay lean on investments on design and production and look for an opportunity in marketing and technology.

Wholesaling

When one “Wholesale” it is the process of selling goods in bulk at a discounted price.

Wholesaling is a B2B practice but some many retailers are taking advantage of it as part of being budget-conscious which is making it look like a B2C Ecommerce Model.

Dropshipping

Dropping shipping is the fastest growing method of all the value delivery methods for ecommerce. Some people find it tough to differentiate it with affiliate marketing, but they are quite different from each other.

Dropping shipping is a kind of a value delivery method in which a products or goods is shipped to a third party through ecommerce sites like aliexpress or jumia.  Dropshippers stand as middlemen between the manufacturers and the buyers.

The buyer will place orders through the middleman and the middleman will place the order to the manufacturer with the buyer’s address and the manufacturer will ship the product to the buyer.

In this case the middlemen don’t see the products at all.

Subscription Services

This trend has been here for a very long time. Since 1600s publishing houses in the UK have used subscription services to deliver books monthly to customers on their subscription list.

The subscription works in such a way that a customer pays a fixed amount weekly, monthly or yearly to have access to a service for the particular period of time paid for by the customer.

Subscription services have been known to help customers save more money than non-subscription services around the world.

In today’s world and age almost all industries have seen and welcomed subscription services in their companies.

Even with Digital products today subscription is taking over the industry from the mobile phone data, to cable subscription and even digital information products.

Conclusion

An entire business is a value delivery system.  Customers nowadays base their buying on two criteria: The benefits and what the product stands to offer and its services and prices. If the value will be reused a number of times, the more the customer will be ready to pay for the prices of the product or services.

Which value delivery method would like to use for your business?

please share with family and friends.

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