All posts by Teiji Kai

Online: The Future of Business

Online businesses are continuing to develop and grow. In fact, revenues coming from online transactions are briskly overtaking those that are made from actual physical stores. If you look at the top retail companies today, chances are that at least one of the companies included in the list is an online retail store. Amazon.com is one such company. It has become so big that it annually ranks high on the Global 2000: Top Retail Companies list of Forbes magazine and consistently ranks within the top 10 of the most visited websites in the Internet. Granted that Amazon is a multimillion-dollar company therefore its success is not surprising. But, in a much smaller scale online business is fast becoming the medium of choice for up and coming entrepreneurs.

But first, what makes online businesses more attractive nowadays?

Traditional vs. Online Businesses

The first advantage of having an online store is that it is more economical than having a physical one. There is no rent to pay and if your store or page is hosted in a popular social media website, it is also mostly free. This is a huge advantage because it lowers the capital you need and maximizes profit. It is also more efficient and cheap to advertise compared to a traditional business. An online store is also more accessible because of social media. Though a physical store can also use social media campaigns to advertise their products, an online business is more direct. It is much easier for costumers because they can have full access of your wares in the comfort of their own homes.

Traditional-vs-Online-Businesses

Because of the growing popularity of online stores, a lot of traditional stores and businesses are starting to create digital versions of their products. It is becoming the norm. This is good news. For small-scale businesses, it allows them to compete in a more equal playing field with larger and more established brands. For the consumers, it gives them more choices in terms of the variety of brands available.

The new generation of businessmen

The younger generation of today are said to be more dependent on technology. They are more comfortable using the Internet and in terms of business such a set-up is perfect for them. This is because such a set-up allows a lot of flexibility and freedom. Social media also has a lot to do with this move towards online businesses. It has become so easy to create a dedicated website or blog to advertise and sell your product. Not only that but it’s also a free service. Social media also provides a wider reach making your products more accessible as well as easier to peddle to your intended audience.

This kind of technique is well suited to millennial businessmen who stay connected all the time. In this process, they are not only taking advantage of the free resources that has already been provided but also taking advantage of being at the forefront of technology. They are the pioneers of the new digital age of fast and competitive marketing. Their generation have started marketing their wares on Instagram, Twitter and Snapchat way before major players in the industry even thought about using social media to connect directly to their customers.

Challenges of online business

Online businesses have their fair share of challenges associated with it. An increase in site traffic or social media activity does not automatically mean that a real life person is taking their time to see what you can offer. Various social media sites today are prone to be duped by robotic or fake activity from unscrupulous accounts and data mills whose main purpose is to provide likes for different social media pages to help them increase their perceived visibility. Unfortunately, this kind of action does not lead to an increase in sales or profit because all of those online activity are incapable of translating to actual deals or actual customers.

You need to diligently pursue organic online activity and organic search engine optimization (SEO) practices. As stated by SEO Explode, it is usually a commitment that you must make in order to get great rankings in search engines and to increase your site’s visibility. However, it is usually complex and time consuming to understand algorithms and the like to actively pursue this endeavor on your own. What successful online businesses have done and continue to do today is by making use of a reputable and effective online marketing company. By making use of SEO companies, you can lighten the load of managing an online business. You can now focus more on delivering more quality products and services to your consumers.

The Characteristics of Successful Online Businesses

Online businesses are the latest trends these past decades. Many of the biggest companies around the world include the creation of online platform to cater and bring their products and service to consumers. With this trend, we gather information what makes online store successful. We divide the information into two parts. One part discusses the four ways to make an online marketplace successful. The second part reiterates the three categories of online businesses.

Four ways to make Your online Business Prosper

One, online businesses that prosper do not stop in integrating innovative methods in their marketing plans. These innovative methods may include creating unique online interface that is still easy to use. These may involve new marketing strategies from simply optimizing the site to delivering a promotional email campaign. Incorporating an SEO marketing plan is an investment that most online marketplaces spend money on.

Two, these businesses generate a sophisticated order management system. This system, despite its complexity, is easy to use to the consumers. The platform is concise and yet complete. It enables the consumers to describe their problems or wants in a service or product without stressing them of description and technicalities.

online_business

Three, these businesses acquire technical knowledge on how to address the needs of consumers. Acquisition of such knowledge may come from two sources. The first source is experience and the second one is personnel empowerment. Through years of experience in the industry your business belongs to, you can obtain a lot of information. This information includes the purchasing habits of your consumers, their needs and wants without asking them directly.

On the other hand, personnel empowerment may mean sending your marketing team to trainings and seminars to learn the latest trends on marketing or giving your marketing team incentives if they can bring your company added sales in a month or year.

Four, these businesses create an equal demand and supply. In creating an equal demand and supply, consider the price and the need of your consumers. When demand is high, make sure that you can deliver the supply. You know that you are not short of supply if your consumers receive their demands within their specified period combined with high quality goods.

Categories of Online Businesses

Using the four strategies, we create a list of categories that represent the practical application in the Internet.

The Long Tail Category

 

long-tail

This category describes an online business that offers products to consumers by delivering them in small quantities. These small quantities come from larger supply quantities . For example, a supplier of a dish washing product wants to sell worldwide. With the use of a long-tail online marketplace, the supplier can dispose the products until supplies last. An example is Amazon. The difference of this platform with the network category is the interaction made. The company that organizes the order management system can interact with consumers and suppliers. The suppliers on the other hand can only contact the company.

The Network Category

 

business-networkingThis category describes an online platform where suppliers can interact directly with their customers. A company organizes the platform and allows people to create an account to post products or services. Through commission or subscription fees, the company earns an income. An example of this category is Ebay.

The Transmission Category

This type of category describes online platforms that bring information to consumers in real time. An example of this category is when consumers have to pay their bills online. Using an online platform, you can achieve the information you want and services are delivered simultaneously.

Online businesses is a complexity in the business world but one that brings convenience to your consumers. Starting an online marketplace requires a small start-up costs but expensive maintenance costs once consumers find the marketplace as an important addition to their daily living.