There are many advantages in doing business via or on the internet.
Some of these advantages are enumerated below: 1.
Do businesses 24 hours a day - Internet has no time restrictions, like the real world.
People who run their shops have to follow the restrictions of time.
They can only open shop and sell their products in the stipulated time period.
This time period is also know to the buyers and they visit or call on the shop only in this time period of the day to buy goods.
However, on the internet this is not so.
Your internet business is open all hours.
Any buyer can log on at any time to buy the required product or at least get to know about your products.
2.
Wider Market - Internet is accessed all over the world.
With the help of internet you can hope to tap even the customers based in a different state or even country.
If your business is not represented on the internet, you cannot have this world wide market.
You can only sell to those customers that could visit your shop to buy goods.
3.
Anytime Buy - With the internet being accessible to customers at all times, they have the facility of placing an order at any time of the day or night.
As soon as they see a product on any site on the internet, they can buy it with their credit card.
This is very effective, because many a people have the tendency to buy in the heat of the moment, when they are emotionally excited about a product.
Later on, they may not be in the mood or frame of mind to make the purchase.
4.
Low Running Cost - As compared to running a business from a shop or an office, it is much cheaper to run a business online.
A shop has to be maintained in style so you have to spend on the décor and staff and other maintenance costs.
On the other hand, online business can be run for as little as £50 a month.
5.
Selling Digital Products - The best use of an online business comes into play in case of digital products.
This is so because as soon as you pay for a digital product you can have it delivered online without any shipping cost.
A digital products seller can sell 1000's of copies without incurring any added costs like office space, inventory etc.
One can say that your inventory and shipping costs are almost zero.
Precautions against a Dot Com Collapse When starting an online business most people are apprehensive, as they have the danger of a dot com collapse at the back of their mind.
Looking into reasons for a dot com collapse, you will find that many companies that closed shop during the dotcom collapse were using internet to sell those products that were actually meant to be sold physically in shops.
They ignored the use of internet in selling electronic products.
Physical goods and products were being sold quite well in normal shops but by putting them on sale on the internet, the companies actually increased their overhead costs.
When in actual practice the companies have to try to reduce their overhead costs.
Successful Internet Business For the successful internet business, you can try some of these ideas: · Make sure that your internet business allows the customers to easily place an order and have an equally efficient delivery process in place.
For this various facilities on your site such as order form and credit card validation should work well.
· Try to sell only those products that can be sold easily on the internet and to a worldwide customer base, such as digital products.
You will find many customers, equipped with their credit cards, who are ready to buy these digital products.
· Another thing that you need to do is to enable multiple customers to order simultaneously so that you don't loose out on any customers or orders.
This is so, because customers are often fickle minded and may not come back, if asked to wait for a while when the other customer is placing the order.
· Your site should also be well promoted on search engines etc.
so that you get maximum clientele.
For this, optimization of your website is important.
Examples of Successful Internet Businesses Some of the most common successful internet businesses are: · Subscription Services - These websites charge a fee from the customers for the services that they offer.
Here the product is digitally delivered to the subscriber.
Most of the subscriber websites run on very low overhead cost and thus register profits soon.
· Digital Products - Sites which sell digital products online such as, e-books, image files and media files, be it audio or video.
As soon as the customer pays, he can have his digital product delivered to him.
· Software Products - Selling software products is also a very popular and successful enterprise on the internet.
Software can also sell like hot cakes if people find them useful.
If your software becomes popular, before you know it, you would have sold hundreds of copies.
· Service Websites - These websites charge a fee for allowing people to use their services for the specified time period, for example selling chat modules that other businesses can put up on their websites, for a specified period and pay for the time you have used the product.
Most of these sites can be run with low overhead cost and limited staff.
In fact, even one person can manage multiple sites.