Different organisations and individuals will choose to use different levels of e-business. Some businesses will only use email for communication and don't require a website, whereas others will operate almost entirely online. There are a number of successful e-business models that you should consider when determining what level of e-business is right for your individual circumstances.
An important point that you need to consider is the difference between operating an e-business and using a website to promote your traditional business. An e-business model maintains that revenue is generated as a direct result of operating some part of the business online, as opposed to just using the internet as a promotional method. Remember that none of the following e-business models have to be used exclusively, you can use them in addition to an existing traditional business model.
Online shopfronts are one of the most popular and common types of e-business sites. Online shops are designed to provide information to consumers about products and services and to accept orders online. Generally, online shops utilise a "shopping cart" application that allows users to complete an online order form and process orders and payments. Physical products are then shipped to the customer or electronic products can be downloaded instantly.
Online shops are only successful when they are able to offer something equal or better than traditional business models. Customers want to be able to save time or save money when purchasing online. They also expect similar levels of customer service and the option to deal with a real person if a problem arises.
It is possible to create a commercial viable e-business without actually selling products or services to the general public. Popular websites that feature high amounts of web traffic are able rent out advertising space on the website to other businesses for a fee. The key is to build a website that offers targeted, high quality content that users will return to view over and over, and to offer advertising to businesses that are in some way related to the information you provide.
Some e-businesses operate simply by offering content that is useful enough for users to register and pay a fee to use. However, it can be difficult for paid subscription services to compete in a market where there is extensive information available for free. You need to be sure that people value what you offer highly enough to want to pay for it before you consider charging a fee for your online content.
Online auctions are another popular and relatively successful model for operating a business online. Sellers post up items at a reserve price, and registered users bid on the item until the end of the auction. The website operator usually collects a small fee after the item is sold as commission on the transaction. Internet auctions are popular as they allow people to sell their products even if they aren't interested or don't have the need to set up a business or website of their own.
E-learning is an expanding industry in which businesses can operate online. Offering education and training packages that can be completed either partially or entirely online can be a way for people with specialist skills to educate others about a particular area of interest. It could be in the form of an accredited program with a registered training organisation or as simple as posting up a how-to guide, advice and instructional video about a particular area of interest
Refernce
toolkit.smallbiz.nsw.gov.au/part/15/74/319
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