The online retail industry has changed dramatically in the past few years. Ten years ago, everyone was talking about dropshipping on AliExpress or finding the “one product that will work” to promote through Facebook ads.
Fast forward to 2025, and the game is very different. Costs are rising, platforms are cracking down on low-quality sellers, and customers are smarter than ever.
There are still many great ways to make money online. But you just have to choose the right business model and implement it well.
So, without further ado, here are the top models that are actually working for entrepreneurs and online sellers right now, along with tips and real-world considerations.
1. Wholesale
One of the most stable models in 2025 will be traditional wholesale. Instead of taking risks with untested products, you can partner with authorized distributors of brands that are already selling well.
For example, you can work with large catalogs like Kole Imports, Smith Distributors, or Wholesale2B, or you can build a direct relationship with the brand.
How does it work?
- You buy products (in as many quantities as you need) from a distributor or brand.
- Then you resell those products on Amazon, Walmart, or your own store.
- Margins are usually slightly lower than private labels (8% to 20%), but the volume is higher and the risk is lower.
Amazon Seller Tips: If you use Fulfilled by Merchant (FBM), You can partner with a 3PL (Third-Party Logistics) Warehouse to fulfill your orders for you. This can help reduce costs compared to the rising costs of FBA (Fulfilled by Amazon).
For example, consider selling office supplies. Rather than designing your own stapler brand from scratch, you can resell well-known brands like BIC or Swingline. Since customers already trust that brand, you’ll make sales faster and with fewer headaches.
2. Private Label
Private Label is still alive and well… but the competition is getting tougher. Just putting your logo on a regular product won’t work anymore.
The vendors who are winning with private labels in 2025 are innovating in small but meaningful ways.
For example, better packaging, bundling products, or addressing small issues customers complain about in reviews of competing products. Before launching a private label brand, you need to do thorough research.
How does it work?
- Source the product from a manufacturer, usually an overseas manufacturer.
- Rebrand and make small improvements to the standard.
- Sell on Amazon, Shopify, Walmart, TikTok Shop, or your own branded store.
TikTok has become a major launch platform. Popular viral content can push new products to millions of people in a matter of days. Sellers often use TikTok Shop to quickly test products before moving to Amazon for larger sales.
For example, even if you don’t invent a brand new yoga mat, you can still include a free carrying strap and design a gift-worthy packaging. That extra $2 investment can double your conversion rate.
3. Two-Step Dropshipping
Is it the dropshipping model that people once scoffed at? That’s changed. Two-step Dropshipping (sometimes called Wholesale Dropshipping) is not about listing untested AliExpress products, but rather connecting you with authorized U.S. distributors who can ship directly to your customers as agents.
How does it work?
- You list products on Amazon or Walmart that you don’t physically stock.
- When a customer places an order, you send the order to a wholesale supplier, who ships it on your behalf.
- You earn a profit without having to hold the product in stock.
This method is low-risk and can be started quickly. And if you work with the right suppliers, customers get fast shipping to the U.S. The key is to build real supplier relationships (not just copycat catalogs).
Pro Tip: Amazon is strict about dropshipping. So always use suppliers who blind ship (those that ship without documentation, logos, or branded boxes). Make sure to follow Amazon’s seller guidelines.
4. Print on Demand (POD)
Print on Demand (POD) is still a strong business model for creatives. But be warned, the competition is fierce in 2025. So only those who truly understand their niche and create designs that customers are interested in will succeed.
How does it work?
- You create graphics for t-shirts, mugs, hats, posters, etc.
- When a customer places an order, POD companies like Printful or Gelato print and ship the item.
- There’s no need to hold the product, and there’s no upfront cost.
Pro Tip: Use social media communities to test designs before they go live. Reddit Groups, TikTok Comments, or Discord Servers can give you immediate feedback.
5. Subscriptions
Earning recurring revenue is every business owner’s dream. Subscription boxes aren’t new, but they’re evolving. Instead of offering generic “monthly surprises” like they used to, sellers are finding success with bundles that focus on a niche market.
How does it work?
- Choose a collection of products that people use or collect regularly.
- Deliver those products on a subscription basis (monthly or quarterly).
- Build a community around the box for better customer retention.
Successful examples
- Beauty/skincare sample boxes for a niche audience (e.g. all-natural, organic, cruelty-free, etc.)
- Building a model, Hobby kits, such as puzzles or craft supplies.
- Snack boxes sourced from international markets.
Think about it: If you’re a dog owner, wouldn’t you love subscribing to a monthly box of treats, toys, and scented wipes that are sized for your dog? This saves you the time of having to go to the store and also feels like a gift for your pooch.
6. Combining Digital Products and AI Tools
This is the big opportunity of 2025: Digital Products. As AI explodes, the market for courses, templates, and AI-powered tools designed for entrepreneurs is growing.
Digital products are attractive because they are infinitely scalable and have almost no overhead.
How does it work?
- Create an information product (eBook, Course, Guide) or a digital tool (AI Prompt Pack, Software Template).
- Sell it on platforms like Gumroad, Etsy, Shopify, or bundle it with physical products.
- Customers can access it immediately and you can make a real profit.
Pro Tip: Amazon KDP (Kindle Direct Publishing) is currently very popular for niche books, guides, and journals with limited content.
Also Read: 5 Ways to Earn Money From Home Without Investment
The Bottom Line
So which one should you choose? The truth is, there is no one-size-fits-all solution. It all depends on your skills, your budget, and your risk tolerance.
If you’re serious about selling online, start small, but plan for the long term. While Amazon, TikTok, and Shopify aren’t going anywhere, the rules of the game are changing and new markets are sure to emerge.