Online Business or e-commerce is any type of business or transaction that involves sharing information online. The term is widely used by different people and means basically any business activity that involves transactions and exchange of information online. Internet commerce generally constitutes the exchange of goods and services among individuals, companies, groups and other entities and is thus seen as a central activity of any successful business. There are several theories on economics that are directly or indirectly applicable to the field of e-commerce. These include microeconomics, macro economics and behavioural economics.
Microeconomics deals with the small changes that occur in the price level of specific items within a market. For instance, a particular product may sell for less on some days than it did a few years back but overall the situation remains the same and the price gap between the two measurements does not change. Similarly, micro-blogging platforms like Twitter or Facebook have seen a tremendous increase in their usage over the last few years and this has been attributed to the rise in online business use. Micro-bloggers do not indulge in any form of offline marketing and hence they do not observe the effect of competition and they also do not undertake any form of market research. Hence, they are generally regarded as self-sufficient and are able to exploit any price difference in the market.
Macro-economics deals with the larger issues such as trade flows and employment levels. Online businesses have significantly grown over the past few years and this has significantly affected the size and scope of the labour force. Online businesses need to employ more workers if they want to increase their sales or else they will have to contend with reduced production because there are not enough hands to work. Hence, the dynamics of employment also needs to be considered while planning for an online business. The size of an entrepreneur’s net worth is directly proportional to the number of clients he serves during a month.
The other two most significant business types that help an entrepreneur make money online are MLM (multi level marketing) and affiliate marketing. An MLM basically refers to recruiting new members in an effort to build an attractive online. It is done by having an initial contact with the members who will in turn recruit more people. Affiliate marketing involves creating a product or service and then hiring others to sell it online through a website or from a blog. Hence, online business ideas related to these two business models are crucial for entrepreneurs who wish to build a network of buyers for their product.
Another online business idea for an entrepreneur is to set up an e-commerce store. An e-commerce store is a virtual store where one can buy or sell digital products. The most popular e-commerce site is eBay, which has become the most popular online store. Digital products include software, electronics, music, clothing, books, movies, and other digital goods. Through eBay, entrepreneurs have been able to make a steady income from selling digital products.
However, not every entrepreneur can use eBay because it is a difficult process to get products listed on the site. Another alternative for an aspiring e-commerce entrepreneur is to open his own e-commerce store. This alternative is much easier than starting an eBay business because it does not require as much startup capital and it also provides an avenue to earn revenue through digital products. There are several ways to earn revenue through a b2b e-commerce business, the most common being pay per click advertising and commission arrangements with merchants who have digital products for sale.
Another online store business opportunity for an aspiring entrepreneur is to become a member of a social media networking site. Such networking sites include MySpace, Facebook, and Twitter. A member of a social media site can earn revenues by allowing links to his or her online store to be shared on these social media networking sites. Every time one of these links is clicked, the owner of the website that posted the link earns a commission. With the massive number of members of these social media sites, it is not surprising that there is a significant presence of online stores today.
An alternative way to earn revenues from a b2b business is to sign up to be a member of affiliate programs. Affiliate programs allow one to sign up to receive emails containing advertisements about various products and services. These emails may contain links to merchants who have products for sale. Signing up to be an affiliate of these merchants allows the entrepreneur to earn a commission for promoting their products in one’s online store.