Model Bus i ness online What is – online business model
Before we get into the business model, consider how the internet has changed people’s lives by allowing anyone to start a small business in this space. For example, if your friends compliment you on your cooking abilities, this may spark an idea for an internet business. (See also: Business Branding) The first question that arises after deciding to start an internet business is what business model to use. To make a more informed decision, we will first define the business model.
What exactly is a business model canvas?
The simple definition of a business model is your strategy for making your business profitable. The simple definition of a business model is your strategy for making your business profitable. Even if you have to spend a lot of time selecting your business model, you will undoubtedly get a better result, so keep that in mind. Which business model is the best fit for me? Here we will look at three business models and see which one is most similar to your business style. 1- Offer a physical product for sale 2- Offer a product or service 3- Offer knowledge, information, and electronic goods for sale. If you don’t want to be constantly involved with different companies, warehouses, physical stores, and the like, service sales models are a better option. And then go sell content on the internet. Another common method is to use another company’s affiliate marketing system. (The working system of affiliate marketing is such that another website sells that product, and you can create content and advertise it on your site to direct users to the site in question for purchase.) Torb and Imals websites are examples of this in Iran. Affiliate marketing is their business model.
The first business model is: Physical product sales online
Basically, this is one of the first ideas that everyone has (let’s build an online store and sell products in it). In this case, you can sell your own products or those of other companies.
Benefits of Selling Physical Goods Online
One of the advantages of this business model in a traditional shop (stores, supercarts, etc.) is that the customer can get information about the desired product without going to the store, and your time to explain to Every customer will not be taken away, and you can only think about the success of the business and the sale of more products. Another reason customers prefer online shopping is the ability to read the reviews of other customers (who may have purchased this product in the past) and make an informed decision. Furthermore, by selling products online, you can attract customers from all over the world.
Problems with selling physical goods online
We will now look at their issues and limitations. The first point is that you must have a warehouse or a location to store these products before you can sell them. Keep in mind that some physical products have expiration dates or may become damaged and unavailable over time. Another point that should be added to the above list is the possibility of a customer return. Add in transportation damage, theft of goods from your warehouse, and so on.
The next business model is: Online service sales
This business model is one of the most appealing things to sell online. This is accomplished in two ways. 1- Services that must be physically provided 2- Online services that must be provided.
What is the distinction between these two scenarios?
In the first method, for example, if you are looking for a dentist, physiotherapist, carpenter, or other service provider, you can view user reviews, work samples, and descriptions online, but you will only be able to receive the service in person. The second method includes digital marketing services, as well as purchasing tickets for transportation systems (planes, buses, trains, and so on) that can be ordered and delivered online.
Benefits of Selling Services Online
The main advantage of this business model is that it is less expensive than traditional and older methods. Customers can easily find all of the information they require, as well as your services, and make informed decisions. Another advantage of this model is that if you have a good site and regularly update its information, your competitors will be out of the game and unable to compete with you. Also, this business model is faster and easier than selling physical products online.
Disadvantages of Online Service Sales
This method, like any other, has its own set of issues. For example, if you sell laptops, when a user searches for the term laptop in a search engine (such as Google, Bing, or Yahoo), she will be directed to your website. Because the competition for this keyword is extremely high, you will need a strong and effective strategy (along with patience) to secure your position in the search engines. To begin working, you will require various advertisements for your website, which will be costly for you (Google advertisement, Facebook advertisement, advertisement report, etc.).
The third type of business model: Selling information, knowledge, and electronic goods
The last business model we’ll look at is the sale of digital content. The main difference between this method and the others mentioned above is that you sell an electronic product (which can be an electronic book, training, information, analysis and review, etc.), and the customer receives the item immediately after paying the amount. In this business model, managing one order is the same as managing a million orders, and all work will be completed methodically. Let’s look at two items that can be sold in this type of business. 1- Data that is downloadable 2- Subscription charge
Data available for download
On your website, you can sell data such as electronic books, video, audio, PDF files, and so on. Of course, you should keep in mind that these contents should be really valuable and unique, because there are many contents in the internet world, and the user should feel that by preparing this content, she is one step ahead of the competition.
Fee for subscription
This method is better suited for businesses such as newspapers and online magazines, as well as sites offering movie downloads or services that allow you to use their services in exchange for a fee for a set period of time. Last words You must have realized the significance of understanding your business model after reading this text. Using these materials, select your business model and increase your chances of success at work.