Online Business is a purchase or sales of product, service or even information – ALL done ONLINE. It may be
- On the Internet
- Product/ Service marketed
- Product/ service sold
- Can be Hybrid model
Many online business models have a storefront as well! So being online does not mean that you have to close down your physical presence.
Many large companies, such as Amazon and eBay, successfully conduct all their business on the Web, and online spending continues to grow almost independent of global economic trends. In 2012, the worldwide internet users will reach around 2.3 Billion with much of the growth occurring in developing markets of Asia, Africa and Middle East. According to IDC, in 2012, over 1 billion online users will spend $1.2 Billion in B2C transactions and the online B2C transactions are forecast to reach over $12 trillion. The fastest growing e-commerce sectors in US are Toys & Hobbies, Books & Magazines, and Video Games; in that order. The advantages of an online business is the fact that it opens up a global marketplace for your products and services. It is also location independent, reduces your ops cost, gives you the option of round the clock sales, leads to easy expansion of your business. However, there are risks associated with the business which are bordered around investment, suitability, maintenance, lack of personal touch and ofcourse the dependence on technology. In the series that follows we will explore the possibilities of online business, the process that we use to set it up and how to market and make online businesses successful.