Online Business Types

With the development and the growth of new technologies, more people from all over the world are connected through social media. Regardless of your social status or your location, people now have the ability to share ideas and skills with others people from all over the globe.

​For sharp entrepreneurs, the internet never ceases to create new opportunities especially when it comes to starting an online business.
Many entrepreneurs are captivated by online businesses because of the freedom, the low cost and the vast range of clientele that they offer. Online business gives you the ability to run your business 24/7 and to connect to a worldwide audience from any location; as long as you have a good internet connection.

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While opening an online business has its benefits, the owner has to conduct a thorough study on what products or services he has to offer, and most likely build a website to connect with customers. It will be more comfortable and more profitable for a business owner to open a business that matches his skills and his ambitions, and this will allow him to convince his virtual customers better.

​Starting an online business is a smart idea, it is very inexpensive and easy to start. An Online Business will allow you to be flexible in your time management, and will increase and diversify your income.

What are the types of Online Business?

​There are three major types of Online businesses: E-commerce business, Drop-shipping, and Service-based Business.

Type 1. E-commerce Business

​In this type of business, the business owner lists his products on his website, the customers pay for their purchases via the same website, and once the payment go through, the business owner delivers the products to the customer’s location.

​The business website features an integrated shopping cart which he can program himself. E-commerce business allows the owner to have full control on what he lists as products, on the way he wants to customize the website’s appearance and gives him an opportunity to assist his customer’s request online immediately.

​Any E-commerce business owner should dispose of a physical address to store his products before shipping them to the clients. There are many examples of E-commerce businesses and among them are:

  • ​Online store: ​For business owner interested in sales, online stores are ideal places to start your business; you can quickly sell your products (clothing, jewelry, your craft) via the internet as someone is looking to buy it. eBay, Amazon, Alibaba are the mainly ones of the best choices to start your online business.
  • ​Affiliate marketing: ​Business owners prefer affiliate marketing because they have no particular products they want to sell. Affiliate marketing is the process of selling products for another business and gain a commission fixed by the affiliate merchant. Many affiliate networks like Amazon Affiliate will help you to gain money by selling someone else’s products
  • ​Re-selling: ​The idea in re-selling is to find a low price market and then sell them for a higher price on your website. If you are low price obsessed or a garage sale fan, this type of online business is an ideal way for you to earn money.

Type 2. Drop-shipping business

​With this type of business, the owner is a middleman between the client and the wholesaler by shipping goods to the customer. Some businesses don’t like to store their goods physically. Instead, they rely on drop-shipping companies to store and deliver their products.

Type 3. Service-based Business

​For people who are not interested in selling products, they should consider running a business that provide services via the Internet.

​Maybe you are an expert in accounting, in copy-editing, designing or a genius in coding.
There multiple types of service-based businesses and Here are examples for better understanding:

  • ​Web and graphic design:​ ​with the online business booming, web designing and digital art are highly in demand. Since most business owners want to maintain a web presence, it will be easy for a web designer and a graphic designer to find work.
  • ​Freelance writing and editing:With more and more readers demanding reliable content, business owners are hiring writers and editors constantly. As a writer, you can also make money by writing for students at university or merely become a critique.
  • ​Business Coaching: If you are an expert in accounting or any business area, you could offer your service to aspiring entrepreneurs. Your work will be consisting of using your skills to help new business owners to start and keep their business running and successful.
  • ​Blogging: Blogging is the most expanding of all types of online business. It alone combines being a writer, an affiliate marketing agent, advertiser, coaching.
    Service-based business has a wide range of services, and it is recommended to business owners with a limited amount of time and a tight budget as it more flexible compared to the other types, you passion and your skills are enough to start your business.

What to consider before starting an online business?

​The internet is filled with various business models and guidance to start your online business, but at the end of the day, it is up to your clientele to determine your success. The business owner has to keep it simple and entertaining to attract a bigger audience and increase the number of his customers.

Starting an online business can be very exciting. To achieve success, the owner must consider which Type of online business he is better at, if he has enough skills and resources. He must also be careful with the content and study rules regulating applicable online business laws.


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