1_ in this case we have many revenue models that is are:

1) Sales: first the mother and the father run the Internet largest marketplace
for doll clothing patterns at Pixie Faire, on 2008 they use eBay, then they
go to SendOwl. After they began selling patterns under their own website
(Liberty Jane Patterns). After they relaunched the site again as Pixie Faire
that it has become the Internet’s largest marketplace for doll clothes
patterns. When the largest challenge form them it was delivery process,
they use WordPress. At the end, they left their WordPress platform and
moved to Shopify and SendOwl. Shopify and SendOwl have solved so many
headaches.
2) Subscription fees: customers pay a fixed amount to get some type of
services, in this case the services is online training courses on design,
sewing, pattern-making, and craft business.
3) Transaction fee: when they have 43,000 transactions in a month,
bandwidth, the reliability of the hosting, and shopping cart functionality
really matter.

2_ In my opinion it is a good decision taken by Cinnamon and Jason.

They consume time and money by outsourcing manufacturing to China,
therefore they work with ladies sewing from home for them and working with
locals, that consume time and labor cost and in the same time help women to
get money without leaving their home. Moreover, they are not concerned
about high volume or manufacturing in China, they are focused on an intense
level of detail, high quality fabrics, and designs that are bold and trendy. Their
goal is to translate contemporary fashion hits into the 18-inch doll market for
collectors and young girls who are excited by today’s fashions. All this thing
explain why they don’t want to outsourcing manufacturing to China and
prefer to do it locally and by their hand and to have a high control over work.

3_ The problem was that always something will go to break, and it cause a big
problem when they have 43,000 transactions in a month, bandwidth, the
reliability of the hosting, and shopping cart functionality really matter.
The solution was to left WordPress platform and moved to Shopify and
SendOwl, where the results is better.

4_ They download a PDF in the website contain their design. When any one
would purchase clothes she select from the catalog what she like from the
design using various shopping card and digital delivery tools.