Global e-Commerce markets have touched $3.46 Trillion online in 2019, up from $2.93 Trillion from 2018, as per a forecast published by Digital Commerce 360. This global scenario certainly looks promising, with a rosy picture being portrayed about its future prospects. Yet when you look at individual organizations, there are only a handful of organizations that are making money. If you look from the Indian context, it stood at $39 Billion in 2017 and is expected to grow at a rate of 51 percent, to $120 Billion, as per a report from IBEF.

With so much upside potential for growth, it is obvious to expect a heavy inflow of investments. As of 2019, if you look up for a profitable eCommerce venture, you will hardly find any. Despite so much potential and growth, not a single eCommerce company in India has been able to form a sustainable profit venture. In fact, even in 2019, both Amazon and Flipkart made losses to the tunes of thousands of crores. An obvious first thought here is, have these large corporations planned out their business model before investing heavily? These MNCs would certainly have made some definite plans for the break-even point. With this idea, let’s look at some of the methods eCommerce companies make money from and are these methods good enough.

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